Whitebark Energy provides update on Rex-1 oil discovery in Canada

Whitebark Energy has provided a progress update for the Rex-1 well at its Wizard Lake Project in Canada.

The well started production last month.

Currently owning a 30% working interest in Rex-1, Whitebark expects to increase the stake to 50%, following the completion of a two-well drilling programme.

Current production is estimated at 250 barrels of oil a day (gross) but pump speed is optimised due to poor road conditions caused by unseasonably heavy rainfall.

The oil cut from the Rex-1 well has increased to more than 50% with the separation facility upgrading the purity of the final oil, which now stands at 99.5%.

Whitebark is currently working with an engineering firm to determine the optimal investigate expanding the tank farm to cater to unseasonal rainfall events.

The company is also working towards the tie-in of Rex-2 proceeds, which is expected to occur in August this year.

Whitebark managing director David Messina said: “The improving Rex-1 oil cut and quality is very encouraging for the broader Wizard Lake programme, which has an inventory of at least 18 well locations, following our acquisition of a new section of land to the north announced last month.

“Being able to deliver 99.5% oil using a simple, low-cost tank cascade system reduces OPEX costs and is a testament to the commitment and abilities of the operations team in Alberta. We will be addressing the storage issues quickly and look forward to opening the well up fully again as storage capacity improves.”

Commenced as a result of the spudding of the Rex-1 well, the Wizard Lake development programme is focused on the Wizard Lake oil field in Alberta Canada.

Whitebark is an oil and gas production and exploration company with operations in Canada and Western Australia.