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H3 ENERGY LIMITED — Capital/Financing Update 2021
Oct 26, 2021
65034_rns_2021-10-26_8c76f127-d97b-402a-86e8-b6e716e04c23.pdf
Capital/Financing Update
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ASX Announcement
Wizard Lake Oil and Gas Field
Reserves and Contingent Resources – Year ending June 30 2021
Whitebark Energy Ltd (ASX:WBE) announces its reserves and resources assessment as at 30 June, 2021.
Whitebark Energy Ltd “(Whitebark”) is the Operator, through its wholly-owned Canadian subsidiary Salt Bush Energy Ltd, and holds a 100% share of, the Wizard Lake Oil and Gas Field in Alberta, Canada.
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1P (Proved) Reserves of 0.981 MMbbls of oil, 7.55 bcf of gas and 151 Mbbls NGLs: Total 2.39 MMboe
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2P (Proved plus Probable) of 2.073 MMbbls of oil, 15.67 bcf of gas and 313 Mbbls NGLs: Total 4.998 MMboe
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This update reflects completion of technical studies during H2 FY21 utilising greater historical production data to inform decline curve estimates and ultimate recovery per well forecasts
| Resources & Reserves as at 30 June, 2021 | ||
| 100% Field Reserves (MMboe) | ||
| CategoryProved1PProved & Probable2P | ||
| Developed & Undeveloped2.394.998 | ||
| 100% Field Contingent Resources (MMboe) | ||
| Category1C2C | ||
| Total1.8554.821 |
Reserves and Net Present Value
The total 100% Field 2P Reserves in WBE’s Wizard Lake Oil and Gas Field (Figure 1) at 30 June, 2021 are assessed to be 4.998 million barrels of oil equivalent. The barrels of oil equivalent figure comprises: 2,073,000 barrels of crude oil; 15,672,092 million cubic feet of natural gas; and 313,000 barrels of natural gas liquids.
2P Reserves include: 1P Proven Developed Producing Reserves (“PDP” – those remaining reserves attributed to existing wells Rex-1 through Rex-3); 1P Proven Undeveloped Reserves (“PUD” – those reserves accessible from existing infrastructure and requiring the drilling of Rex-4 through Rex-8); and 2P Probable Reserves (those accessible and requiring a new well-pad, new facilities and the drilling of Rex-9 through Rex-15).
The net present value (NPV10% Before Tax) of Whitebark’s 2P reserves at June 30[th] 2021 was AUD50.645mm (@ CAD1.0 = AUD1.075).
20d William Street, Norwood T + 61 8 6555 6000 [email protected] SA 5067
Whitebark Energy Limited ABN: 68 079 432 796
Contingent Resources
The total 100% Field 2C Contingent Resources for the Wizard Lake Field at 30 June, 2021 are assessed to be 4.821 million barrels of oil equivalent. The barrels of oil equivalent figure constitutes: 2,008,000 barrels of crude oil; 15,078,000 million cubic feet of natural gas; and 300,000 barrels of natural gas liquids.
The Field Contingent Resources comprise volumes attributed to future planned wells with identified locations nominated Rex-16 through Rex-28 within the modelled reservoir distribution. Drilling of these locations will require further facilities and the expansion of the Whitebark land position.
Reporting Period Movements in Reserves and Contingent Resources
| Resources & Reserves as at 30 June, 2021 | ||
| 100% Field Reserves (MMboe) | ||
| CategoryProved1PProved & Probable2P | ||
| 100% Field Reserves at 30 June 20202.7905.566 | ||
| FY21 Production0.1180.118 | ||
| Revisions% change from June 30 2020(0.464)-16.6%(0.464)-8.3% | ||
| 100% Field Reserves at 30 June 20212.394.998 | ||
| 100% Field Contingent Resources (MMboe) | ||
| Category1C2C | ||
| 100% Field Contingent Resources at 30 June 20201.4613.797 | ||
| Revisions% change from June 30 20200.394+27%0.851+22% | ||
| 100% Field Contingent Resources at 30 June 20211.8554.821 |
The reporting period movements show that the overall level of reserves has decreased slightly over and above the production volume from the field during FY21 to June 30, 2021. This decrease reflects the results of an in-depth field study conducted by Dr. Simon Brealey during H2 FY21 which was based on six months greater historical production data from existing wells Rex-1 through Rex-3, and recalculated forecast decline curves to arrive at revised estimated ultimate recoverable (“EUR”) reserves per well. Reserves were then adjusted for production during the period. The difference between the two reports is most significantly affected by less than forecast oil production rates from all three existing wells, and is largely attributed within 1P PDP and PUD Reserves. This decrease in oil production is somewhat offset by increased gas yield (approximately 56% of the reserves are natural gas). Updated operating costs and price forecasts were also incorporated. Contingent resources are slightly improved through application of the updated EUR for the Rex-3 well to nominal well locations Rex-16 through Rex-28, and assumes similar completion strategy and well performance to Rex-3.
The evaluation was carried out under the standards contained in the Petroleum Resource Management System (PRMS) revised June 2018 version.
20d William Street, Norwood T + 61 8 6555 6000 SA 5067
Whitebark Energy Limited ABN: 68 079 432 796
Notes on Calculation of Reserves and Resources:
The Wizard Lake Field has one producing reservoir, the Rex Sand Member of the Lower Cretaceous Upper Mannville Group.
All reserves and resources are estimated by deterministic estimation methodologies consistent with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2007 Petroleum Resources Management System (PRMS).
Under the SPE PRMS guidelines, “Reserves are those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions”. Contingent Resources are “those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered to be commercially recoverable owing to one or more contingencies”.
Qualified Petroleum Reserves and Resources Evaluator Statement:
The information contained in this report regarding the Whitebark Energy Ltd reserves and contingent resources is based on and fairly represents information and supporting documentation compiled by Dr. Simon Brealey who is an employee of Whitebark Energy Ltd and holds a PhD. in oilfield geology. All ValNav runs and decline analysis of the existing wells and future type curve wells were generated by Whitebark with input parameters reviewed and validated for this report.
KD Angus Corp consents that the reserve and resource forecasts used in this report relating to the Wizard Lake Oil and Gas Field are based on an independent review conducted by KD Angus Corp and fairly represent the information and supporting documentation reviewed. The information was reviewed by Kevin Angus. Mr. Angus, P. Geoph., has an ICD.D designation from the Institute of Corporate Directors. He holds a Bachelor of Science in Geology from the University of Calgary and is registered as a Professional Geoscientist with the Alberta Professional Engineers and Geoscientists of Alberta (APEGA). Mr Angus was both the Chairmen and member of the reserve committee of Painted Pony Energy for 5+ years, a publicly traded Canadian company with over 3tcf of reserves.
For further information please contact: Dr. Simon Brealey Kaitlin Smith Chief Executive Officer, Whitebark Energy Ltd Company Secretary, Whitebark Energy Ltd Ph: +61 402 110405 Ph: +61 8 6555 6000 Email: [email protected] Email: [email protected]
About Whitebark Energy Limited:
Whitebark Energy Limited (ASX:WBE) is an ASX-listed exploration and production company featuring low cost oil and gas production in Canada, a substantial gas resource in Western Australia, and a management and Board team with a proven track record in delivering shareholder value. WBE has realigned its corporate strategy following a comprehensive management changeout and the landmark acquisition of a 100% interest in the Wizard Lake producing asset located in the prolific oil & gas province of Alberta, Canada. WBE intends to build a substantial oil & gas business through disciplined execution of strategic objectives.
20d William Street, Norwood T + 61 8 6555 6000 SA 5067
Whitebark Energy Limited ABN: 68 079 432 796
Figure 1. Wizard Lake Oil Field: Location; Field reservoir map; Existing and planned wellbores
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20d William Street, Norwood SA 5067
Whitebark Energy Limited ABN: 68 079 432 796
T + 61 8 6555 6000