Whitebark Canadian oil cash supports plans for green energy

[Pelican Press 0]

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Whitebark ********* oil cash supports plans for green energy

Junior oil producer Whitebark Energy, which is looking to get into the geothermal power business, has received news from ****** venture partner, Conflux, that its recently restarted Wizard Lake oil and gas project in Alberta Canada produced 242.6 barrels of oil equivalent (BOE) a day, over a reporting production ******* from July 7th to July 14th. About 24 of those barrels are attributable to Whitebark who holds a free carried 10 per cent interest in the project after recently selling down 90 per cent of it.

At the beginning of the month, JV partner Conflux confirmed that it had relaunched production at the Rex-1 and Rex-2 wells with Rex-3 and Rex-4 springing into production shortly therafter. That production has now resumed for all four Wizard Lake wells and according to the company, the oilfield has continued to demonstrate strong production levels.

Under the terms of the ***** of Whitebark’s 90 per cent stake in Wizard Lake, all outstanding liabilities will be assumed by Conflux who will also free-carry Whitebark with the required expenditure to bring the operation back into production.

The cash flows from Wizard Lake will assist Whitebark to progress its local geothermal projects, which remain its priority focus. A recent $500,000 placement to institutional and sophisticated investors has also aided the push, in addition to a share purchase plan that it hopes will raise a further $1 million. The plan, which has been offered to existing investors, is for the opportunity to purchase one share for every three held. It is priced at 1.2c per share and comes with a free “gimme” option exercisable at 3c.

The recommencement of production across all four wells is a pivotal step in our journey to lead the *********** Green Hydrogen and Geothermal energy market. The revenue from Wizard Lake provides the essential financial base for advancing our South-West Queensland Hydrogen Hub. We are thrilled by the opportunities this funding unlocks and reaffirm our commitment to developing renewable energy assets in Australia.

Handing over the management of production in Canada has freed up Whitebark to roll out an ambitious plan within the South-West Queensland Hydrogen Hub, better known as the Cooper Basin.

With three exploration permits for geothermal energy covering 9,545 square kilometres, the company is doing a geological review and an evaluation of future markets in a quest to provide baseload power for the future generation of hydrogen. Initial development funding has been secured and Whitebark is now in the process of investigating federal government funding available from its recently announced $6.7 billion hydrogen production incentive scheme in addition to funding from various state green initiatives.

According to the International Renewable Energy Agency, geothermal has one of the lowest levelised costs of electricity production (LCOE) of all renewable energy sources at US$39.5/MWh which compares well against solar for example that clocks in with an LCOE of between $44 and $65/MWh. Onshore wind has an LCOE of between $49 and 61/MWh.

Notably, Norwegian maritime technical advisory company, Det Norske Veritas, expects a strong forecasted geothermal market compound annual growth rate of 13 per cent between 2020 and 2030 and 7.5 per cent in the 2020-2050 *******.

Governments are awash with money for green energy initiatives right now and Whitebark would appear to be in the right industries at the right time.

It probably doesn’t hurt either that it will have a source of regular income from its free carried interest in Wizard lake.

Is your ASX-listed company doing something interesting? Contact: *****@*****.tld

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