Whitebark Energy Production Update - July 2024
WBE (WBE) Share Update July 2024 Monday 29th
Whitebark Energy Recommences Production at Wizard Lake, Boosting Revenue
Whitebark Energy Limited (ASX: WBE) has announced the recommencement of production at its Wizard Lake asset, significantly boosting the company's revenue and paving the way for future renewable energy projects.
Instant Summary:
- Production of all four Wizard Lake wells has recommenced.
- Total well performance of 242.6 BOE/day, with Whitebark’s share equating to 24.26 BOE/day.
- Projected BoE per month of 720 (WBE share).
- Production revenue to accelerate the development of the South-West Queensland Hydrogen Hub.
Production Details
Whitebark Energy Limited (ASX: WBE) is pleased to provide a production update for the Wizard Lake asset for the period from July 7, 2024, to July 14, 2024. The Wizard Lake asset continues to demonstrate robust production levels, contributing significantly to Whitebark Energy’s overall output. With a 10% working interest (WI) in the Wizard Lake asset, Whitebark Energy’s share of production enhances our cash flow stability, providing a steady stream of revenue.
Recommencement of production follows the recently announced transaction with Conflux Energy Corp. in which Whitebark was provided a 'free carry' for all associated expenditures required to return Wizard Lake assets to production as well as the assumption of all outstanding debt.
Daily Well Performance
The daily well performance for the four wells is as follows:
- Rex-1: 57.62 BOE/day
- Rex-2: 28.83 BOE/day
- Rex-3: 88.48 BOE/day
- Rex-4: 67.66 BOE/day
Total production amounts to 242.6 BOE/day, with Whitebark’s share being 24.26 BOE/day. This includes oil, gas, and NGLs, contributing to the overall production figures.
Future Prospects
Whitebark Chairman, Mark Lindh, commented: 'Recommencement of production of all four wells is a significant step forward in the Company’s roadmap to being a leader in the Australian Green Hydrogen and Geothermal energy market. Revenue generated by Wizard Lake provides the financial foundation necessary for the development of the Company’s recently announced South-West Queensland Hydrogen Hub. We are excited about opportunities the funding presents and would like to reiterate the Company’s steadfast focus on the development of Australian-based renewable energy assets.'
Whitebark Energy remains committed to maximizing the value of the Wizard Lake asset and will continue to provide regular updates on production performance. The company will also continue to pursue its aspirations around Geothermal in Australia and believes that it is well-positioned to become the leading Geothermal Company in the Australian market.
The recommencement of production at Wizard Lake is a positive development for Whitebark Energy, enhancing cash flow and providing a stable revenue stream. This will support the company's future projects, particularly in the renewable energy sector. The increased production levels are likely to have a favorable impact on the company's stock price as investors respond to the improved financial outlook.
Investor Reaction:
Investors and analysts have reacted positively to the news, highlighting the strategic importance of the Wizard Lake asset in bolstering Whitebark Energy's financial stability. The focus on renewable energy projects has also been well-received, aligning with broader market trends towards sustainable energy solutions.
Conclusion:
Investors should keep an eye on Whitebark Energy's future updates and consider the potential long-term benefits of the company's renewable energy projects. The recommencement of production at Wizard Lake marks a significant milestone in Whitebark's growth trajectory.