Whitebark Energy : Annual Report 2020

WHITEBARK ENERGY LIMITED (ASX:WBE)

Annual Report

30 June 2020

ABN 68 079 432 796

WHITEBARK ENERGY LTD - Annual Financial Report 30 June 2019
Table of Contents
Corporate Directory	2
Chairman's Letter	3
Review of Operations	4
Reserves and Resource Statement	12
Directors' Report	16
Auditors Independence Declaration	26
Independent Audit Report	27
Statement of Profit or Loss and Other Comprehensive Income	32
Statement of Financial Position	33
Statement of Changes in Equity	34
Statement of Cash Flows	35
Notes to the Financial Statements	36
Directors' Declaration	70
Shareholder Information	71
Permits	73

2020 ANNUAL REPORT

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	WHITEBARK ENERGY LTD	Corporate Directory
Directors	Charles Morgan (Non-executive Chairman)
	David Messina (Managing Director)
	Stephen Keenihan (Executive Director)
Company Secretary	Kevin Hart
Principal registered office in Australia	Level 2
	6 Thelma Street
	West Perth WA 6005
	Tel: [phone]
Auditors	KPMG
	235 St Georges Terrace
	Perth WA 6000
Solicitors to the Company	Steinepreis Paganin
	Level 4, The Read Buildings
	16 Milligan Street, Perth WA 6000
Share Registry	Computershare Investor Services Pty Ltd
	Level 11, 172 St Georges Terrace
	Perth WA 6000
	Tel: [phone]
Banker	ANZ
Stock exchange	Whitebark Energy Limited shares and options are listed
	on the Australian Securities Exchange (ASX: WBE)
Company website	www.whitebarkenergy.com

2020 ANNUAL REPORT

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WHITEBARK ENERGY LTD

Chairman's Letter

Dear Fellow Shareholders,

In 2019/2020 Whitebark has consolidated and increased its ownership of the Wizard Lake Oilfield in Alberta, Canada.

It has drilled two additional wells, Rex-2 and Rex-3 at Wizard Lake and invested substantial capital in the Wizard Lake Facilities to deal with the greater than expected volumes of oil and gas from the Rex wells.

There have been challenges in bringing on and maintaining the production at Wizard Lake due to the combination of high gas rates and relatively heavy oil - an unusual combination.

Like many businesses and all oil and gas production companies around the world, Whitebark was hit badly by the COVID- 19 pandemic. Plummeting demand and a disagreement between Russia and Saudi Arabia on OPEC production led to negative oil prices in April 2020.

Subsequently Whitebark acted quickly to reduce costs with all directors, executives and staff taking cuts in remuneration for the remainder of the financial year.

Whitebark has raised circa $9 million during the year and invested $12 million in wells and facilities. It completed the year with $1.1 million in cash. As a result of the capital works program Whitebark has a number of creditors with whom we have reached extended payment terms beyond normal contracted payment dates. Whitebark thanks these service companies for their continued support.

Whitebark continues to learn about the characteristics of the Rex reservoir at Wizard Lake and has, since the end of the financial year, worked over and cleaned out tonnes of proppant from two of the wells which was having a negative effect on the production. Whitebark will bring on future wells much more slowly in order to minimise downtime and optimise the production curves of the wells.

During the year Whitebark transferred its non-Wizard Lake interests back to its JV partner, Point Loma, and through a variety of transactions increased its ownership of the Wizard Lake Oilfield to an average of 84% working interest across the field.

Whitebark is working hard to ensure that it gets stronger and continues to grow.

I would like to thank everyone involved for a great year and we look forward to more success to come. Yours sincerely,

Charles W Morgan

Chairman

2020 ANNUAL REPORT

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