The new addition increases Whitebark’s total area to 3,705 acres (gross) and provides additional potential drilling opportunities.
Notably, the addition of the half section to the south of the Wizard Lake oil discovery increases the potential wells locations to at least 20 wells.
Under the agreement, any land acquired or sold by either party is subject to certain conditions. As a result, Point Loma has the right to acquire 50% of the new land acquired.
READ: Whitebark Energy appoints rig and crew that successfully drilled Rex-1 to start drilling Rex-2
The company recently appointed Precision Drilling as the drilling contractor to drill the company’s upcoming Rex-2 development well at Wizard Lake.
Following the drilling of Rex 2, Whitebark will have a 40% working interest in Rex-2 and the Wizard Lake oil field, increasing to 50% following the drilling of Rex 3.
The rig and crew that successfully drilled Rex-1 in nine days, Precision Drilling Rig 186, will return to spud Rex-2 within the next 14 days.