Whitebark Energy : Magus Engineering appointed for Wizard Lake Drilling Program

Whitebark appoints Magus Engineering for upcoming Wizard Lake drilling program

12 June 2019

Experienced Canadian service provider to manage Rex-2 well drilling

• Canadian oil sector specialist, Magus Engineering has been appointed to manage Whitebark's operations for the upcoming Rex-2 well.
• Magus Engineering has extensive experience managing horizontal well drill programs in the region.
• Rex-2remains on track to spud in mid-August 2019.
• Rex-1production operations continue and the well is cleaning up as expected.

Whitebark Energy Ltd (ASX : WBE) is pleased to announce that it continues to make good progress with the Wizard Lake development program with the appointment of Canadian oil sector specialist, Magus Engineering Limited, to manage Whitebark's drilling operations for the upcoming Rex-2 well.

Magus Engineering has extensive experience managing end-to-end drilling programs in Canada involving horizontal wells with multistage completions having been involved in over 1000 wells to date. Magus Engineering will manage all service procurement, drilling, wellsite construction and completion activities at Rex-2.

Rex-2 remains on track to spud in late July 2019.

Whitebark Managing Director, Mr David Messina said: "Whitebark recently agreed to fund the next two wells in the Wizard Lake program in return for a 20% increased interest in the field3. The Wizard Lake development presents an enormous growth opportunity for Whitebark and it is important we manage this program carefully as well as quickly."

"The appointment of a local operations expert with extensive technical experience in the region is an important step, and Magus Engineering is an excellent fit. With the well manager now in place and the weather in Canada conducive for continuous drilling operations, we look forward to updating shareholders on the spudding and progress of Rex-2 over the coming months."

More information on Magus Engineering can be found at www.maguseng.com.

For further information:
David Messina		Cameron Morse
Managing Director		FTI Consulting
Ph: [phone]		Ph: [phone]
E: [e-mail]	M: 0433 886 871
T [phone]	E [e-mail]	whitebarkenergy.com
Level 2, 6 Thelma Street West Perth WA 6005		PO Box 1195 West Perth WA 6872 Australia

Background

The Wizard Lake Rex well was spud on the 24 November 2018 and, following a 27-stage fracture stimulation program, the well commenced cleanup flows on December 24th.

Initial flow testing of the Wizard Lake Rex horizontal oil well recorded production rates of more than 300 barrels of oil per day prior to the completion of testing. Following reconciliation of the hydrocarbons produced from the January 2019 flow test of its Wizard Lake Rex well, the total oil produced from the

16-day flow test has been increased from 1833 barrels of oil to 2845 barrels - a 55% increase (Refer ASX Release 20 February 2019). This increase in total testing volumes would very likely mean that daily production, when the well is brought on line, will be higher than initially forecast.

Production facilities and a pipeline were completed in early June and Rex-1 began pumping fluids on 5 June 2019. Clean up is expected to take a number of weeks for the well to clean up and the oil cut to stablise1.

The funded 2019 Wizard Lake development program encompasses the completed construction of a pipeline and installation of initial production facilities on a multi-well pad and the drilling of two new Wizard Lake wells in 2H 20192. Whitebark's working interest in the Wizard Lake oil development will increase up to 50% following the two well drilling program3. The reserves assessment indicates the likelihood of 12 to 17 follow-up well locations.4

1. Refer to ASX Release 5 June 2019
2. Refer to ASX Release 22 March 2019
3. Refer to ASX Release 31 May 2019
4. Refer to ASX Release 15 March 2019

T [phone]	E [e-mail]	whitebarkenergy.com
Level 2, 6 Thelma Street West Perth WA 6005		PO Box 1195 West Perth WA 6872 Australia