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Whitebark Energy Ltd (ASX:WBE), an oil and gas exploration and production company which belongs to the energy sector announced its report for the quarter ended 31 December 2018. During the quarter, the company made a new oil discovery at the Rex oil play in Canada. The reason for the success of the first well was because it has the potential to more than double the oil production of Whitebark. The company expects to be on track for the well coming onstream in terms of production in Q2 2019. Based on the recent discovery, there is a possibility for further 10 to 14 well development programs.
Based on the success of the drilling program of the Wizard Lake, the company has made the management to refocus towards the management strategy on production growth from Canada which offers WBE a superior investment return. Â
WBEâs Australian operations during the quarter highlight the sale of its 15% interest in TP15 to Triangle Energy (ASX:TEG) for $5 million. The initial consideration amount of $2 million was received on 13 November 2018 along with another set of 11,191,052 shares in TEG on the 24 December 2018.
With regards to the Warro Gas Field, during the quarter, the WA government announced that it would be lifting the moratorium on fraccing of existing projects north of Perth after the independent scientific inquiry for the stimulation of Hydraulic Fracture where there was a risk associated with the techniques used to extract gas.
The company at present is looking towards the Canadian operation. Their primary focus is towards the drilling program at the Point Loma Joint Venture for the development and optimization of the existing oil pools. Based on the disciplined and pragmatic technical approach in nearby regions, it was identified that the region has an active exploration potential. There are three regions under the limelight. These include the Rex (Upper Mannville) oil play, Lower Mannville oil play and Banff oil play.
The companyâs planned activities for the next quarter ending on 31 March 2019 include the installation of pipeline and processing facilities to resume production from Wizard Lake Rex. The next step is to start the planning activities for undertaking further drilling in the year 2019 at the Wizard Lake Rex Oil Discovery and also continue certain strategic acquisitions.
Meanwhile, WBE has reported for a net cash outflow of A$0.761 million from its operating activities where the significant cash outflow was due to the payment made for exploration & evaluation, production, staff costs, and administration and corporate costs. There was a net cash inflow of $2.173 million where the company generated revenue from the disposal of tenements. The company used only A$0.004 million in the form of the transaction cost related to issues of shares, convertible notes or options. By the end of the quarter, WBE had net cash and cash equivalent of A$3.971 million.
Since WBEâs inception, the stock generated a negative performance of 92.63%. However, its YTD performance is 25%. By the end of the trading session on 30 January 2019, the closing price of the share was A$0.005 with the market capitalization of circa A$7.87 million and approximately 1.57 billion outstanding shares.
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