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WBE - Industry Pays C$33m for Duvernay Shale Oil Acreage Surrounding Whitebark Lands


Increasing interest in emerging Duvernay Shale Oil Play in Canada

Whitebark Energy Limited (ASX : WBE) (the “Company” or “Whitebark”) is pleased to provide an update on recent transaction activity in the emerging Duvernay shale oil play. Whitebark currently has a 20% interest in approximately 19,000 gross acres (3,800 net acres or approx. 6 net sections) in the West Duvernay Basin with Point Loma Resources as part of its Point Loma Joint Venture (PLJV) holdings.

The May 30th Alberta land sale by the Alberta Government recorded increased transaction activity attracting C$42m of sales with the majority of the acreage posted within the West Duvernay shale oil basin. Several large parcels of land, with a combined acreage of 82,920 acres, and located just to the southeast of Point Loma Joint Venture (PLJV) lands (Figure 1), were acquired for C$33.3 million or an average price of C$347/acre

The Duvernay shale is an emerging oil play which continues to attract increasing industry activity and attention, with an estimated 150 horizontal oil wells drilled mostly in the East Duvernay Basin. An analysis by Point Loma of technical data from the West Duvernay Basin indicates similar reservoir characteristics to the East Duvernay Basin, where contingent resources of 10 to 15 million barrels per section of original oil in place have been stated by other operators.

Point Loma's analysis shows that the West Duvernay Basin shale has a thickness of approximately 10 to 15 metres, with porosities ranging from 3 to 10% and TOC's in the range of 2% to 10% which are parameters comparable to other successful North American shale plays and those seen in the East Duvernay Basin.

Three horizontal Duvernay shale oil wells have been drilled by other operators to date in 2018 within Whitebark's core area of operations at Paddle River. The results of these wells have not yet been publicly disclosed.

Whitebark's Managing Director, David Messina said “Increased sales is another clear sign of increasing activity and interest in the Canadian oil space, and Whitebark is well positioned to benefit. The Point Loma Joint Venture is reviewing alternatives to unlock shareholder value from its Duvernay shale holdings.”page1image169980944

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Figure 1 - Land Holding Within the West Duvernay Basin Oil Play