WHITEBARK ENERGY LIMITED (ASX:WBE)
(formerly Transerv Energy Limited)
Annual Report
30 June 2017
ABN 68 079 432 796
WHITEBARK ENERGY LTD - Annual Financial Report 30 June 2017
Table of Contents
Corporate Directory
Chairman’s Letter
Review of Operations
Reserves and Resource Statement
Directors’ Report
Auditors Independence Declaration
Independent Audit Report
Statement of Profit or Loss and Other Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Shareholder Information
Permits
3
4
5
10
12
21
22
27
28
29
30
31
62
63
65
2017 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
Auditors
Solicitors to the Company
Share Registry
Banker
Stock exchange
Level 2
6 Thelma Street
West Perth WA 6005
Tel: +61 8 6555 6000
Fax: +61 8 6555 6099
Grant Thornton Audit Pty Ltd
Level 1, 10 Kings Park Road
West Perth WA 6005
Steinepreis Paganin
Level 4, The Read Buildings
16 Milligan Street, Perth WA 6000
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth WA 6000
Tel: +61 3 9415 5000
ANZ
Whitebark Energy Limited shares are listed on the
Australian Securities Exchange (ASX: WBE)
Company website
www.whitebarkenergy.com
2017 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Chairman’s Letter
Dear Shareholders,
The 2016/2017 financial year was one of transformation for the Company in its operations and business focus, changes
which encouraged renaming the Company Whitebark Energy to recognise the new direction.
Activities at the Warro Project, which has been the main focus of the Company for a number of years, have been reduced
due to the fact that although the Warro wells produced sustained gas flows with substantial amounts of water, the wells
will not be economic with the current combination of gas rates, water rates and well costs. This is further exasperated
by the recently declared moratorium on fracking in WA pending the outcome of a “scientific enquiry”.
There have been ongoing studies to try and determine how best to access the immense quantities of gas that are
contained in the very tight sands. It is possible that in the future, pump assisted production and/or horizontal wells
drilled into better zones of porosity may prove to be commercial. However, there is no possibility of any further field
work with the current moratorium on fracking in WA.
Subsequently, the Board determined that it would be in the Company’s best interest to seek assets that gave the
company a balance between production with growth prospects and some higher risk exploration activity.
On 11th July 2016, the Company announced that it had formed a strategic alliance with Norwest Energy Ltd (NWE) to
facilitate the farmout and drilling of the Xanadu Prospect in TP-15 in the Perth Basin. Whitebark also acquired 100m
shares at $0.002 at this time. The balance of Xanadu was subsequently farmed out and the well was spud on the 4th
September 2017. On the 25th September it was announced that Xanadu was an Oil Discovery and we look forward to
working with our Joint Venture partners to maximise shareholder value from this excellent result.
On January 11th Whitebark received $9.3 million by successfully qualifying its portion of the Warro Project under the
Australian Government Research and Development Tax Incentive Programme.
In November and December the Company appointed a new Managing Director, Mr David Messina and a new Company
Secretary, Kevin Hart. I have worked with both these gentlemen for many years and I commend them to you.
The Board would like to thank Stephen Keenihan, who stays on as a director, for the excellent job he did as Managing
Director of what was Transerv Energy at the time, and in particular his work in progressing Warro and working with
Alcoa.
On April 11, the Company announced that it had signed a binding Term Sheet to invest CAD$5 million for a 20% working
interest in Point Loma Resources Ltd’s (“Point Loma”) operations in Alberta, Canada comprising land, production,
underutilised facilities, shut in production, development and exploration. There are also many possibilities for the
acquisition of further production in the area. Importantly these assets are positioned in a very active and rich oil and
gas province and governed by a regulatory regime that is conducive to maintaining an active and vibrant exploration
and production industry
In the course of the year, the Company has completely changed its focus, has already participated in the Xanadu-1 Oil
Discovery in Western Australia and is currently participating in a number of workovers and new wells in Canada.
I would like to thank the Board and all in the office for a remarkable effort this year!
Yours sincerely,
Charles W Morgan
Chairman
2017 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Review of Operations
1 Review of Operations
1.1 Overview
The 2016/17 year was a period of heightened activity for the Company with the implementation of a new strategy
focussed on growing a production base to provide an ongoing revenue stream while still ensuring the Company was
exposed to upside by participating in high impact exploration wells.
After reviewing many opportunities the Company decided to join forces with Point Loma Resources (PLX) in Alberta
Canada, which had been acquiring producing assets with material stranded production and an extensive network of
facilities. The transaction involved acquiring a 20% direct interest in all of the assets of PLX. While the production at
the time was modest (900 boe/d) the business is poised for growth and required capital to unlock previously producing
wells that were currently stranded. An active work program began in August which involved the reactivation of old
wells, re-entry and workovers and a two well drilling campaign for the remainder of 2017.
During the period the Company consummated a transaction with Norwest Energy Ltd to farm into TP15 which holds the
Xanadu Prospect. The Company is paying 20% of the costs of the well to earn a 15% working interest. The well was
spud on the 4th September 2017 and deemed a discovery on the 25th September 2017.
The Western Australian government changed in March 2017 and as a result a fracking moratorium was imposed in the
State. The terms of reference for the inquiry were finally announced on the 5th September 2017 and it is expected the
inquiry will take twelve months. During this period it is unlikely any material activity will be undertaken on the Warro
tight gas field which has been the focus of the Company’s activities over the last ten years.
2 Canadian Operations
On 23 May, 2017, Whitebark (as Transerv Energy) announced that it had
executed the final documentation to acquire a 20% working interest in
Point Loma Resources’ (TSXV:PLX) in Alberta and paid the final instalment
of AUD$2.69million (CAD$2.67 million).
Point Loma has captured a significant land position of over 210,000 net
acres in a highly productive and prospective portion of West Central
Alberta which has multiple oil and gas zones ranging in age from the
Cretaceous Mannville to Mississippian Banff.
The acquisition includes land, property, equipment and production
facilities including:
•
•
•
210,000 net acres– 42,000 acres net to WBE.
PLX’s production of 900 boe/d (25% liquids) up from 135 boe/d in July
2016 - 180 boe/d net to WBE (at the Effective Date 1 April 2017).
65 producing wells and approximately 70MMcf/d in gas plant
capacity (50MMcf/d spare capacity), compressors, tank farms,
production facilities, pipelines and associated infrastructure.
• Work done by Point Loma has identified over 300 drilling and
completion opportunities on the existing lands.
Figure 1 - Canada Location Map
• WBE’s investment is expected to double production over the next 12 months.
Modest drilling depths throughout, and technological advancements associated with horizontal drilling, lead to strong
economic returns due to low-cost wells (AFE $1.5m to drill and frac typical well in the region) and close proximity to
production facilities and easy access to market.
WBE’s investment (total C$5 million – $4m acquisition, $170,000 prepayment for planned expenditure for capital and/or
development projects and $830,000 WI contribution) will be spent “in-the ground” and applied to fund joint venture
activities. Point Loma has also identified numerous production acquisition opportunities which will complement its
existing holdings and result in not only increased production and reserves but also drive down operating costs due to
additional throughput and operating synergies.
2017 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Review of Operations
Whitebark and Point Loma have agreed the work program for the second half of 2017.
and includes:
This program has commenced
• Drilling of two back to back wells, the first of which spud on the 8th September 2017.
•
The re-entry and recompletion of two wells.
• Acquisition of stranded production in the Paddle River Project which is being re-activated.
• Optimisation of Paddle River production.
•
The building of pipeline interconnectors to bring on proven stranded production.
In parallel to developing the existing assets additional opportunities are being reviewed with the objective of capitalising
on assets priced in a low oil price environment. Through all these activities, Whitebark and Point Loma have a joint
objective of doubling production over the next 12 months.
3 Xanadu Discovery
3.1 Highlights
•
Logs run over a 330m section of the Xanadu well confirm reservoir quality sand intervals throughout the Irwin River
Coal Measures (IRCM) with porosities ranging 15% to 16%.
• Oil was obtained via a testing tool from 4.6m of net pay in the top ‘A’ sand, one of three discrete sand intervals (A,
B, C) at top of IRCM.
• Analysis of oil samples obtained from Xanadu-1 expected to substantiate Cliff Head analogue with oil assay results
expected by end of week.
• Norwest Energy to lodge Discovery Notice with Minister of Mines, Industry Regulation and Safety.
•
The Joint Venture will now plan for a lateral well through the oil column.
3.2 Results
The reservoir of interest is the top section of the Irwin River Coal Measures (IRCM). The Dongara Sandstone was not
encountered at this well location, with the IRCM found directly below the base of the Kockatea Shale at 854mTVDSS.
Reservoir quality sand intervals were encountered throughout the IRCM with porosities generally ranging from 15% to
16%.
Three discrete sand intervals (“A”, “B” and “C”) at the top of the IRCM have log-derived hydrocarbon saturations in
excess of 40%. Fluorescence in rock cuttings observed while drilling and log-derived hydrocarbon saturations persist
for 120m in sands below these upper zones but the lower intervals are water-bearing. MDT pressure sampling has
established a high confidence water gradient and water was flowed and sampled via a wireline tool from the “B” sand
despite the high oil saturation.
Reservoir
Unit
Oil was pumped from the “A” sand
utilising the Schlumberger Saturn
pressure and fluid sampling tool and
three downhole samples collected.
Based on the log data, pressure points
and recovered fluid samples, a lowest
known oil depth of 871.8mTVDSS and a highest known water depth of 880.2mTVDSS have been established for the
Xanadu Field.
Net Sand True
Vertical
Thickness (m)
4.6
2.8
2.7
Gross True
Vertical
Thickness (m)
7.7
6.0
4.3
Net Pay
(m)
4.6
N/A
N/A
Oil
Saturation
15%
16%
17%
66%
46%
41%
“A”
“B”
“C”
Porosity
Seismic data indicate that it is possible to drill an up-dip location which could allow the higher quality sand units deeper
in the section to be penetrated above the inferred oil-water contact. Erosion of the upper, poorer quality sands on a
structural high similar to that observed at the Cliff Head Oil Field would further increase the chance of intersecting the
oil column in better quality reservoir.
Results at Xanadu-1 indicate that the assumption of the producing Cliff Head Oil Field being the primary analogue are
correct. Analysis of the oil samples obtained from Xanadu-1 is expected to substantiate this with oil assay results
expected by the end of the week.
2017 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Review of Operations
3.3 Background
WBE announced in July 2016 that it would commit to funding 20% of the costs of Xanadu-1 to earn a 15% interest in the
Xanadu prospect and TP15, conditional on the balance of the well costs being funded and the execution of a farm-in
agreement and JOA. Norwest completed funding on 10 February 2017.
In addition to the farm-in, WBE acquired 100,000,000 shares in Norwest @ $0.002.
The TP15 Joint Venture interests and contributions to the well costs will be made up as per Table 1:
Table 1 - Xanadu Joint Venture Interests and Contributions
Company
Norwest
WBE
Triangle
3C Group
TP-15 Equity Post Well
25%
15%
30%
30%
Contribution to Xanadu-1 Costs
0
20%
40%
40%
WBE’s 20% share of the drilling costs will be approximately $1.6m
to earn its 15% WI.
The TP/15 Joint Venture was formalised following execution of the
Farmin Agreement and Joint Venture Operating Agreement in May
2017. 3C Group IC Limited and Triangle Energy (Global) Limited will
each contribute 40% of the costs to each earn a 30% working
interest, while Operator, Norwest Energy, will be free carried for a
25% interest. The carry is limited to 110% of the approved well
AFE.
TP/15 is located near Dongara in the offshore northern Perth Basin,
Western Australia. The Xanadu prospect is located at the southern
end of TP/15 (see map). Xanadu-1 will be drilled using Enerdrill
Rig 3. Xanadu-1 drilling operations will follow immediately
afterwards and are expected to commence, subject to normal
regulatory approvals, during September 2017.
The Xanadu prospect is an offshore target that will be drilled from
an adjoining onshore permit (EP413) also operated by Norwest, making access straight-forward. The surface location
for the well is also situated on Crown Land with extinguished Native Title, and is outside the boundaries of any nature
reserves.
Figure 2- Xanadu-1 Location Map
Xanadu-1 will target Permian sands from a depth of approximately 800 metres. Near-shore sands of the Dongara
Sandstone represent the primary target, with secondary targets in the fluvio-deltaic Irwin River Coal Measures and the
regressive marine sands of the High Cliff Sandstone.
3.4 Forward Plan
The Cliff Head Oil Field discovery well Cliff Head-1 identified a gross 4.8m oil column at the top of the IRCM below the
Kockatea Shale – the same stratigraphy encountered at Xanadu-1. Cliff Head-1 was immediately side-tracked to a more
favourable up-dip location where a 36m gross oil column was intersected.
Xanadu-1 was not initially designed to be completed as a producing well and now, with a better understanding of the
stratigraphy, a side-track well similar to Cliff Head-1 is considered an excellent option, with the top section down to
971mMDRT already cased and cemented in place (approximately 250m vertically above the zone of interest).
Based on the current understanding of the structure, there is an excellent chance of finding a significantly thicker column
in an up-dip location which can be reached from the current drilling pad.
The Operator is in the process of lodging a Discovery Notice with the Minister for Mines, Industry Regulation and Safety.
2017 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Review of Operations
3.5 Well Details
Permit
Well Name
Well Location
Type of Well
NWE Working Interest
Geology
TP/15
Xanadu-1
GDA 94: 29°33ˈ29.117”S114°58ˈ42.074”E
Deviated
25%
Interbedded sequence of shale and sand
4 Warro Gas Project
The suspension of Warro-4, 5 and 6 was completed during the first quarter. All the
wells delivered sustained gas flows with substantial amounts of water. However, the
wells will not be economic with the current combination of gas rates, water rates
and well costs.
The Joint Venture continued to assess all the well and production data acquired
during this, and previous campaigns, to identify ways to increase gas production, by
targeting sweet spots, while keeping water production to manageable levels. A
work programme and budget for this analysis during 2017 was approved by Alcoa
of Australia as part of the farmin project.
Data gathered from the 2015/16 drilling and testing campaign have been analysed
to gain greater understanding of the complex nature of the Warro reservoir and
identify ways to increase gas production while keeping water production to
manageable levels. This process will assist the Joint Venture to determine the next
steps required to demonstrate the potential commercial viability of the Warro
Project.
The review of the Warro drilling and testing results was completed during the half
year. The work concluded that;
• A substantial in place gas resource is present;
• Water production, which inhibited well deliverability, was declining and
•
showing signs of depletion;
Extended testing with the aid of artificial lift to “dewater” the gas bearing
intervals should be carried out;
Figure 3 - Warro Location Map
• Only once “dewatering” had been achieved would the true gas production potential of the field be ascertained;
• A Statewide moratorium on fracture stimulation operations has been declared by the WA Government pending the
•
findings of a scientific review;
Further testing operations at Warro may take place in 2018 but will depend on the timing and findings of the
Government scientific inquiry.
Environmental Monitoring and Community Consultation continued throughout the quarter as per the commitments of
the Environmental Plans approved by the DMP.
The final items regarding the rehabilitation of the Warro 3D seismic lines in the Watheroo National Park and Big Soak
were completed during the first half of FY17 and the JV security bond of $119,000 held under Ministerial Statement 849
was released.
The JV is progressing a planting scheme in the Watheroo National Park alongside the Badgingarra Primary School. The
propagation of seeds collected in the area continues successfully under the guidance of Muchea Tree Farm. Educational
presentations will be made to the students prior to the planting activity.
At the end of 2016, Alcoa Corporation announced via their Form 8-K lodged in the USA, that it would impair its after tax
and non-controlling interest in the Warro Project. Whitebark has reviewed its carrying value for these assets in the
normal course of preparing the Company’s half year results.
2017 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Review of Operations
4.1 Environmental Monitoring
Water and soil sampling is ongoing as per regulator requirements as part of the agreement to participate in a water,
soil/atmospheric gas and seismic monitoring project with CSIRO and UWA and other Perth Basin Operators.
This work has not detected any anomalous gas readings around the Warro area and also did not detect any seismic
activity during or after the fracture stimulation work.
4.1.1 Warro Project Background
The Warro field lies 200km north of Perth in the Perth Basin and is one of the largest undeveloped onshore gas fields in
Australia. The Warro reservoir section is about 3,750m below surface and has a thickness of approximately 500m. The
gas is held within low porosity and low permeability Jurassic sandstones. The field is located 31km east of both the
Dampier-to-Bunbury Natural Gas Pipeline and the Dongara-to-Perth Parmelia Pipeline.
Warro field is located in RL-7 and RL-6 and covers an area of approximately 7,000ha. These Retention Leases were
granted over the Warro Field location during FY15. The remainder of EP321 was renewed on 5 December 2014 after
the relinquishment of four graticular blocks in line with State Government requirements. The remainder of EP407,
outside the RL7, was surrendered completely. The interest holders in the permits are currently Whitebark Energy (57%)
and Alcoa Australia (43%).
Under the farm-in agreement, Alcoa may earn a 65% interest in the permits by spending $100 million on a staged
programme comprising exploration and development activities. To date, the Warro Joint Venture (WJV) has drilled four
wells (Warro-3, 4, 5 and 6) and acquired the Warro 3D seismic survey.
5 Origin Asset Sale
While Whitebark (as Transerv) and its funding partners presented in good faith a competitive, fully funded bid for the
Origin Energy Limited’s (‘Origin’) Perth Basin Assets as required by the sales process, on December 6th Origin announced
without warning that all the assets had been withdrawn and the sale cancelled.
Whitebark was able to attract strong financial support during the course of the Origin process and is well placed to
leverage this into new opportunities in 2017 and beyond.
2017 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Reserves & Resources Statement
6 Reserves & Resources Statement
The following summarises Whitebark Energy Limited’s (WBE) proved Reserves (1P), Proved plus Probable Reserves (2P)
and contingent and prospective resources as of the evaluation date of 30 June 2017. Unless otherwise stated, all
estimates are quoted as net WBE share.
Reserves at 30 June 2017
Alberta, Canada
Proved Light and
Medium Oil (1P)
Mbbl
Proved and Probable
Light and Medium Oil
(2P)
Mbbl
40.8
34.9
75.7
51.8
46.5
98.3
Proved Heavy Oil (1P)
Mbbl
Proved and Probable
Heavy Oil (2P)
Mbbl
5.0
0.0
5.0
6.1
0.0
6.1
Proved Natural Gas
(1P)
MMcf
Proved and Probable
Natural Gas (2P)
MMcf
3041.0
76.7
3117.7
3801.2
102.3
3903.5
Proved Natural Gas
Liquids (1P)
Mbbl
Proved and Probable
Natural Gas Liquids
(2P)
Mbbl
59.2
1.1
60.3
74.4
1.4
75.8
Developed
Undeveloped
Total
Developed
Undeveloped
Total
Developed
Undeveloped
Total
Developed
Undeveloped
Total
Contingent and Prospective Resources at 30 June 2017 – Gas Initially In Place (TCF)
Warro Field, Western Australia
Contingent (status unclarified and on hold)
Prospective
1C
2.4
Low
2.0
4.4
2C
3.2
Medium
4.1
7.3
3C
4.5
High
7.3
11.6
Both deterministic and probabilistic methods at the field level have been used to estimate contingent resources.
2017 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Reserves & Resources Statement
Xanadu, Western Australia
At the time of writing, Xanadu-1 had been declared an oil discovery however, technical work in progress needs to be
completed before a statement on Reserves and Resources can be made.
Reserves and Contingent Resource Estimates – Governance
The Company’s reserves and contingent resources estimates are prepared in accordance with the SPE Petroleum
Resources Management Guidelines.
Qualified Petroleum Reserves and Resources Evaluator Statement
The reserve and contingent resource estimate in this annual report (Reserves & Resources Statement) is based on, and
fairly represents, information and supporting documentation prepared by a qualified petroleum reserves and resources
evaluator. The Reserves & Resources Statement as a whole has been approved by Mr Stephen Keenihan. Mr Keenihan
is a holder of shares and options in and is Executive Director of the Company. Mr Keenihan has sufficient experience
that is relevant to the style and nature of hydrocarbon resources and to the activities discussed in this report, and is a
member of the following professional organisations; Society of Petroleum Engineers, Petroleum Exploration Society of
Australia, American Association of Petroleum Geologists. Mr Keenihan has consented to the inclusion of information in
this report in the form and context in which it appears.
The Company confirms that it is not aware of any new information or data that materially affects the information
included in the original market announcement and, in the case of estimates of oil and gas reserves that all material
assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to
apply and have not materially changed.
The Reserves & Resources Statement is based on, and fairly represents, information and supporting documentation
prepared by the respective Competent Persons below.
Alberta, Canada
The information in this report that relates to the oil and gas reserves of Salt Bush Energy Limited (subsidiary of Whitebark
Energy Limited) was compiled by technical employees of McDaniel and Associates Ltd a leading independent Canadian
Petroleum Consulting Firm, and subsequently reviewed by Mr Stephen Keenihan BSc (Hons) Geology/Geophysics, whom
have consented to the inclusion of such information in this report in the form and context in which it appears. Mr
Keenihan is consulting to the Company and has more than 40 years relevant experience in the petroleum industry and
is a member of The Society of Petroleum Engineers (SPE). The reserves included in this report have been prepared using
definitions and guidelines consistent with the 2007 Society of Petroleum Engineers (SPE)/World Petroleum Council
(WPC)/American Association of Petroleum Geologists (AAPG)/Society of Petroleum Evaluation Engineers (SPEE)
Petroleum Resources Management System (PRMS). Their sources information included in this report are based on, and
fairly represent, information and supporting documentation reviewed by Mr Keenihan. Mr Keenihan is qualified in
accordance with the requirements of ASX Listing Rule 5.41 and consents to the inclusion of the information in this report
of the matter based on this information in the form and context in which it appears.
Warro Field, Western Australia
The information in this Announcement is based on and fairly represents the information and supporting documentation
prepared by Mr Stephen Keenihan, a Director of Whitebark Energy Ltd, who has consented to its inclusion in the form
and context as it is presented. It has been produced for the Company, at its request, for adoption by the Directors. Mr
Keenihan has sufficient experience that is relevant to the style and nature of hydrocarbon resources and to the activities
discussed in this document, and is a member of the following professional organisations; Society of Petroleum
Engineers, Petroleum Exploration Society of Australia, American Association of Petroleum Geologists and Australian
Institute of Company Directors. His qualifications, experience and industry membership meet the requirements for a
qualified petroleum reserves and resources evaluator as defined in Chapters 19 of the ASX Listing Rules. Terminology
and standards adopted by the Society of Petroleum Engineers “Petroleum Resources Management System” have been
applied in producing this document.
2017 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Directors Report
7 Directors’ Report
7.1 Directors’ Meetings
Board meetings held during the year and the number of meetings attended by each Director was as follows:
Director
Charles Morgan
David Messina
Stephen Keenihan
Board of Directors
Present
3
5
5
Held
5
5
5
Board and Management Committees
In view of the current composition of the Board (which comprises a non-executive chairman and two executive
directors) and the nature and scale of the Company’s activities, the Board has considered that establishing formally
constituted committees for audit, board nominations, remuneration and general management functions would
contribute little to its effective management.
7.2 Corporate Governance
In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of Whitebark
Energy Limited support and have adhered to the principles of sound corporate governance. The Board recognises the
recommendations of the Australian Securities Exchange Corporate Governance Council, and considers that the
Company is in compliance with those guidelines which are of importance to the commercial operation of a junior listed
resource Company. During the financial year, shareholders continued to receive the benefit of an efficient and cost-
effective corporate governance policy for the Company.
7.3 Directors’ Information
Charles Morgan| Non-executive Chairman
Appointed 9 October 2015
Experience and expertise:
Mr Morgan has extensive experience in equity capital markets and has been involved with numerous projects over a 25
year period. The bulk of these were in the resources/oil & gas industries and in the technology sector.
Mr Morgan is an Executive Chairman of Grand Gulf Energy Limited, chairman of Hutton Energy Plc, Non-executive
director of Gateway Capital Pty Ltd.
David Messina | Managing Director
Appointed 20 April 2016
Experience and expertise:
Experienced international executive with proven entrepreneurial skills and solid track record in developing and
managing a diverse range of businesses, raising finance, stakeholder engagement and delivering results to shareholders.
Mr Messina has over twenty years’ multi-sector experience in the Energy and Agricultural industries, holding senior
positions at the board and executive management level. Having lived and worked in numerous countries he has acquired
global management experience with both start-up and mature businesses.
2017 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Directors Report
Stephen Keenihan BSc (Hons)| Executive Director
Appointed 23 March 2011 as Managing Director; Appointed 20 August 2013 as Executive Director; Appointed 9
October 2015 as Managing Director; Appointed 20 April 2016 as Executive Director
Experience and expertise:
Mr Keenihan has more than 39 years’ experience in the energy industry, within and outside Australia. He has primarily
been involved with oil and gas activities but also a broad range of experience in other energy and electricity projects
including coal, gas, wind, biofuels and geothermal. He has previously held management roles with Apache Energy, Griffin
Energy, Novus Petroleum, WMC Petroleum and LASMO. He has extensive expertise in oil and gas exploration
activities and experience covering a broad range of disciplines including development, operations, commercial and
marketing activities both operated and non-operated. Prior to March 2011, Mr Keenihan led a small team of oil and gas
professionals who acquired the Warro Gas Field in Western Australia. The Warro operator, Latent Petroleum, merged
in 2011 with Whitebark Energy, with Mr Keenihan leading the Company and extending its interests internationally in oil
and gas in Canada since that date until 20 August 2013. Mr Keenihan is also a Non-Executive Director of Grand Gulf
Energy Limited, which is an active oil and gas explorer and producer in the USA.
Kevin Ronald Hart FCA, BComm|Company Secretary
Appointed 30 November 2016
Experience and expertise:
Mr Hart was appointed to the position of Company Secretary on 30 November 2016.
He is a Chartered Accountant and holds a Bachelor of Commerce degree from the University of Western Australia. He
has over 30 years’ experience in accounting and the management and administration of public listed entities in the
mining and exploration industry.
Mr Hart is currently a partner in an advisory firm, Endeavour Corporate, which specialises in the provision of Company
secretarial and accounting services to ASX listed entities.
Jo-Ann Long FCA, BComm, GAICD
Chief Financial Officer - Appointed 23 March 2011; Resigned 30 November 2016
Company Secretary - Appointed 12 February 2014; Resigned 30 November 2016
Experience and expertise:
Ms Long has more than 25 years’ experience as a finance professional with 18 years in the oil and gas industry. In 2008
Ms Long joined the Whitebark Group and has worked on the Warro Joint Venture in both financial and operational
capacity as well as the Company’s expansion into Alberta and British Columbia in Canada.
8 Remuneration Report (Audited)
This Remuneration Report outlines the remuneration arrangements which were in place during the period, and remain
in place as at the date of this report, for the key management personnel of Whitebark Energy Limited. For the purposes
of this report, “key management personnel” is defined as persons having authority and responsibility for planning,
directing and controlling the activities of the Company, directly or indirectly, including any Director (whether executive
or otherwise) of the Company.
8.1 Remuneration Policy
Key management personnel remuneration is based on commercial rates and the existing level of activities in the Group
at this point of time. Should the extent of those activities change, the remuneration of key management personnel
would be amended to reflect that change.
8.2 Principles of compensation
Remuneration is referred to as compensation throughout this report.
Under overall authority of the Board, key management personnel and other executives have authority and responsibility
for planning, directing and controlling the activities of the Company and the consolidated entity. Key management
personnel include the most highly remunerated executives for the Company and the consolidated entity.
Compensation levels for key management personnel of the Company and relevant key management personnel of the
consolidated entity are competitively set to attract and retain appropriately qualified and experienced key management
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WHITEBARK ENERGY LTD
Directors Report
personnel. The Company from time to time obtains independent advice on the appropriateness of compensation
packages of both the Company and consolidated entity given trends in comparative companies both locally and
internationally and the objectives of the Company’s compensation strategy.
The compensation structures explained below are designed to attract suitably qualified candidates, reward the
achievement of strategic objectives, and achieve the broader outcome of creation of value for shareholders. The
compensation structures take into account:
•
•
•
The capability and experience of the key management personnel;
The key management personnel’s ability to control the relevant assets’ performance;
The amount of incentives within each key management person’s compensation.
Compensation packages may include a mix of fixed and variable compensation and short and long-term performance-
based incentives.
In addition to their salaries, the consolidated entity also provides non-cash benefits to its key management personnel.
8.2.1.1 Fixed compensation
Fixed compensation consists of base compensation, which is calculated on a total cost basis and includes any Fringe
Benefit Tax charges related to employee benefits.
8.2.1.2 Performance-linked compensation
The Company currently has no performance based remuneration built into key management personnel remuneration
packages.
8.2.1.3 Long-term incentive
Incentive options have been issued in the past to key management personnel and other employees of the Company.
The ability to exercise the options is conditional upon the key management personnel and other employees achieving
certain vesting conditions. These vesting conditions are set for each key management personnel and employee and
are based primarily on the length of time spent providing their services to the Company.
8.2.1.4 Service contracts
On appointment to the Board, all non-executive directors enter into a service agreement with the Company in the form
of a letter of appointment. The letter summarises the terms, including compensation, relevant to the office of the
director.
Remuneration and other terms of employment for the executive directors and other non-director key management
personnel are also formalised in service agreements. Each of these agreements provide for the provision of bonuses,
other benefits including health and superannuation, and participation in the issuance of options. Other major provisions
of the agreement relating to remuneration are set out below.
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Directors and Key Personnel
Term of agreement
WHITEBARK ENERGY LTD
Directors Report
Base fee or salary
including
superannuation
Termination
benefit
Directors
Stephen Keenihan
Executive Director
Charles Morgan
Non-Executive Chairman
David Messina
Managing Director
Key Management Personnel
Jo-Ann Long
Chief Financial Officer
Company Secretary
Non-Executive Directors
On-going commencing 1 January 2017
$2,000 per day
On-going commencing 9 October 2015
$75,000pa
On-going commencing 20 April 2016 and
terminating on 30 June 2017
Commencing 1 July 2017
$1,500 per day
$400,000pa
Commencing 1 February 2015 and terminating 31
December 2016
$300,000pa
Nil
Nil
Nil
Nil
Nil
Total compensation for all non-executive Directors is to be approved by the Company in general meeting as detailed in
the Company’s Constitution.
9 Directors and executive officers’ remuneration (Consolidated entity)
The following table sets out remuneration paid to Directors and key executive personnel of the Company and the
consolidated entity during the reporting period:
Remuneration 2017
Executive directors
Stephen Keenihan
David Messina
Non-Executive Directors
Charles Morgan
Executive officers
Jo-Ann Long*
Total
Salary and Fees
AUD
Cash Bonus
AUD
Superannuation
AUD
Share based
payments
AUD
Total
AUD
Value of options as
a proportion of
remuneration
288,620 -
373,025 -
- -
-
-
288,620
373,025
75,000 -
-
-
75,000
280,816 -
1,017,461 -
15,000 -
15,000 -
295,816
1,032,461
0%
0%
0%
*Resigned 30 November 2016
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WHITEBARK ENERGY LTD
Directors Report
Remuneration 2016
Executive directors
Craig Burton*
Stephen Keenihan
Ian Cockerill*
David Messina**
Non-Executive Directors
Charles Morgan***
Brett Lawrence****
Executive officers
Jo-Ann Long
Total
Salary and Fees
AUD
Cash Bonus
AUD
Superannuation
AUD
Share based
payments
AUD
Total
AUD
Value of options as
a proportion of
remuneration
60,000 -
394,226 -
188,387 -
97,800 -
- -
- -
16,749 -
-
-
60,000
394,226
205,136
97,800
54,605 -
18,000 -
-
-
-
-
54,605
18,000
297,473 7,500
1,110,491 7,500
26,363 -
43,112 -
331,336
1,161,103
0%
0%
0%
0%
0%
0%
*Resigned 9 October 2015
**Appointed 20 April 2016
***Appointed 9 October 2015
****Appointed 9 October 2015; Resigned 20 April 2016
10 Equity instruments
10.1 Options granted as compensation
There were no options granted as compensation to Key Management Personnel during the year.
10.2 Option Holdings of Key Management Personnel (Consolidated Entity)
As at financial year ended 30 June 2017, there were no options issued to directors and key management personnel.
10.3 Other transactions of Key Management Personnel
Details of equity instruments (other than options and rights) held directly, indirectly or beneficially by key management
personnel and their related parties are as follows:
Shares held in Whitebark Energy Ltd
30-Jun-17
Balance at beginning
of year 1-Jul-16
Granted as
Remuneration
On Exercise of
Options
Net Other
Changes
Balance at
end of year
30-Jun-17
Directors
Stephen Keenihan
Charles Morgan
David Messina
Key Management Personnel
Jo-Ann Long*
*Resigned 30 November 2016
72,947,334
62,100,294
362,000
6,050,880
141,460,508
-
-
-
-
-
-
-
-
-
-
-
-
72,947,334
62,100,294
10,362,000
10,000,000
6,050,880
10,000,000 151,460,508
-
No other key management personnel held shares during the financial year ended 30 June 2017.
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WHITEBARK ENERGY LTD
Directors Report
The aggregate amounts recognised during the year relating to directors and their related parties were as follows:
TB & S Consulting Pty Ltd (i)
Mtani Pty Ltd (ii)
Transactions value year end
Balance outstanding as at
30-Jun-17
30-Jun-16
30-Jun-17
30-Jun-16
288,620
373,025
661,645
394,226
97,800
492,026
125,867
66,187
192,054
104,268
25,200
129,468
i. TB & S Consulting Pty Ltd is a Company associated with Mr Stephen Keenihan. The charges from TB & S Consulting
were for consultancy fees and reimbursement for travel costs incurred in the ordinary course of business.
ii. Mtani Pty Ltd is a Company associated with Mr David Messina. The charges from Mtani Pty Ltd are for director’s
fees and consulting fees.
The terms and conditions of the transactions were no more favourable than those available, or which might be
reasonably available, on similar transactions to non-director related entities on an arms-length basis.
11 Company performance, shareholder wealth and director and executive
remuneration
The remuneration policy has been tailored to increase goal congruence between the shareholders, key management
personnel, and other employees. However, the Company continues to investigate alternative means for achieving this
goal to the benefit of all stakeholders. There is no direct relationship between the remuneration policy and Company
performance.
12 Voting and comments made at the Company’s 2016 Annual General Meeting
Whitebark Energy Ltd received 83% of “yes” votes on its remuneration report for the 2016 financial year. The Company
did not receive any specific feedback at the AGM on its remuneration report.
13 Use of remuneration consultants
During the financial year ended 30 June 2017, the Company did not engage remuneration consultants to review its
existing remuneration policies and provide recommendations on how to improve both the short-term incentives (‘STI’)
program and long-term incentives (‘LTI’) program.
End of Audited Remuneration Report
14 Principal Activities
The principal activity of the consolidated entity during the course of the financial period was the evaluation of oil and
gas exploration projects in Western Australia and production of oil and gas in Alberta, Canada.
15 Results and Dividends
The consolidated entity’s loss after tax attributable to members of the Company for the financial year ending 30 June
2017 was $40,074,224 (30 June 2016 profit: $3,332,981). No dividends have been paid or declared by the Company
during the period ended 30 June 2017.
In determining our impairment position and the appropriateness of continuing to carry forward costs in relation to the
Warro Project consideration has been given to current market conditions for junior mining exploration companies, the
Company’s market capitalisation along with the announcement made by the Company’s JV partner, Alcoa Corporation
in early January 2017 that it had recorded an impairment charge against the carrying value of the Warro project
recorded in Alcoa’s accounts.
As a result of this review of the Warro project, it is considered prudent that the Company make an impairment charge
of $48,670,684 in the current period.
16 Financial Position
The net assets of the consolidated entity at 30 June 2017 were $7,119,635 (30 June 2016: $50,960,471) of which
$4,856,883 (30 June 2016: $3,321,814) represents cash and cash equivalents.
The Directors believe that the consolidated entity is in a stable financial position with sufficient cash to fund its current
operations and commitments expected to occur in the next financial year.
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WHITEBARK ENERGY LTD
Directors Report
17 Earnings/ (Loss) Per Share
The basic earnings/(loss) per share for continuing operations of the consolidated entity for the financial year ending 30
June 2017 was (4.7966) cents per share (30 June 2016: 0.3095 cents earnings per share).
18 Events subsequent to reporting date
Whitebark Energy Limited (WBE) changed its name from Transerv Energy Limited (TSV) on the 3rd July 2017 following
approval by its shareholders at a General Meeting held on that date.
100,000,000 Related Party Options were issued after obtaining shareholder approval at the General meeting. The
options are exercisable by payment of 1.5 cents each on or before 31 May 2021.
On the 5th September the Western Australian Government announced a moratorium on all hydraulic fracturing until an
independent scientific inquiry is held. WBE is confident the scientific inquiry will come to the same conclusion as
numerous enquiries completed to date but is concerned that this inquiry will delay important energy projects in the
State and result in unnecessary delays and added costs for the industry.
18.1 Canada
On 9 August 2017 Whitebark Energy announced the acquisition of two further oil wells through its joint venture with
Point Loma. The acquired section 4-56-7W5 is immediately adjacent to and enlarges the JV’s producing Paddle River
Ostracod A Pool in central Alberta, Canada and is connected to existing facilities.
18.2 Xanadu
The Xanadu-1 conventional oil exploration well commenced drilling operations on 4 September 2017. Xanadu-1 well
was drilled to a planned maximum total depth of 1863 MDRT from onshore to offshore using a deviated well profile,
with the target located below shallow water approximately 1300m from the coastline. Logs run over a 330m section of
the Xanadu-1 well confirm reservoir quality sand intervals throughout the Irwin River Coal Measures (IRCM) with
porosities ranging 15% to 16%. Oil was obtained via a testing tool from 4.6m of net pay in the top ‘A’ sand, one of three
discrete sand intervals at top of the IRCM. Analysis of the oil samples is now taking place.
Other than the above, no material matters or circumstances have arisen since the end of the financial year which have
significantly affected or may significantly affect the operations, results or state of affairs of the consolidated entity.
19 Likely Developments and Expected Results
The consolidated entity will continue to pursue activities within its corporate objectives. Further information about
likely developments in the operations of the Company and the expected results of those operations in the future
financial years has not been included in this report because disclosure would be likely to result in unreasonable prejudice
to the Company.
20 Environmental Regulations
The consolidated entity’s operations are not subject to any significant environmental regulations under either
Commonwealth or State legislation. However the Board believes there are adequate systems in place for the
management of its environmental requirements and is not aware of any breach of those environmental requirements
as they apply.
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21 Directors and executives interests
As at the date of this report, the interests of the Directors and Executives at any time during the financial year in the
shares and options of Whitebark Energy Limited (“the Company”) were:
WHITEBARK ENERGY LTD
Directors Report
Directors
Charles Morgan
Stephen Keenihan*
David Messina**
Key Management Personnel
Jo-Ann Long***
Shares
Options
62,100,294
72,947,334
10,362,000
20,000,000
28,000,000
52,000,000
6,050,880
-
* Held in the name of Stephen Leslie Keenihan & Sheridan Jay Keenihan .
**10,362,000 held in the name of Mtani Pty Ltd .
*** Held in the name of Long JPJ Pty Ltd .
22 Share options
22.1 Options granted to officers of the Company
No options have been granted to officers of the Company during the financial year.
Options granted to officers of the Company since the end of the financial year to the date of this Directors’ report are
as follows:
Grant date
24-Jul-17
Exercisable
24 July 2017 to 31 May 2021
Expiry date
31-May-21
Exercise price
$0.015
Unissued shares under options
As at the date of the report, there were 112,675,000 unlisted options on issue detailed as follows:
Grant date
17-Nov-15
28-Apr-17
24-Jul-17
Exercisable
17 November 2015
28 April 2017 to 1 April 2021
24 July 2017 to 31 May 2021
Expiry date
10-Jul-18
01-Apr-21
31-May-21
Exercise price
$0.060
$0.015
$0.015
Number of
options
100,000,000
Number of
options
1,675,000
11,000,000
100,000,000
All options expire on the earlier of their expiry date or termination of employment. Option holders do not have any
right, by virtue of the option, to participate in any share issue of the Company.
22.2 Shares issued on exercise of options
During the financial year there were no ordinary shares issued as a result of the exercise of options.
23 Indemnification and Insurance of Officers and Auditors
23.1 Indemnification
An indemnity agreement has been entered into with each of the Directors and Company Secretary of the Company
named earlier in this report. Under the agreement, the Company has agreed to indemnify those officers against any
claim or for any expenses or costs which may arise as a result of work performed in their respective capacities to the
extent permitted by law. There is no monetary limit to the extent of this indemnity.
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WHITEBARK ENERGY LTD
Directors Report
23.2 Insurance premiums
During the financial year the Company has paid insurance premiums in respect of Directors’ and officers’ liability and
legal expenses’ insurance contracts, for current Directors and officers. The insurance premiums relate to costs and
expenses incurred by the relevant officers in defending proceedings, whether civil or criminal and whatever their
outcome and other liabilities that may arise from their position, with the exception of conduct involving a wilful breach
of duty or improper use of information or position to gain a personal advantage.
The premiums were paid in respect of the following Directors and Officers: Stephen Keenihan, Jo-Ann Long, Charles
Morgan, David Messina and Kevin Hart.
There were no legal proceedings entered into on behalf of the Company or the consolidated entity by any of the
Directors or executive officers of the Company.
Details of the amount of the premium paid in respect of the insurance policies are not disclosed as such disclosure is
prohibited under the terms of the contract.
The Group has not otherwise, during or since the end of the financial year, except to the extent permitted by law,
indemnified or agreed to indemnify any current or former officer or auditor of the Group against a liability incurred as
such by an officer or auditor.
24 Corporate Structure
Whitebark Energy Limited is a Company limited by shares that is incorporated and domiciled in Australia. The Company
is listed on the Australian Securities Exchange under code WBE.
25 Non-audit services
During the year Grant Thornton, the Company’s auditor, performed certain other services in addition to their statutory
duties.
The Board has considered the non-audit services provided during the year by the auditor and is satisfied that the
provision of those non-audit services during the year is compatible with, and did not compromise, the auditor
independence requirements of the Corporations Act 2001 for the following reasons:
All non-audit services were subject to the corporate governance procedures adopted by the Company and have been
reviewed by the Directors to ensure they do not impact upon the impartiality and objectivity of the auditor; and
The non-audit services do not undermine the general principles relating to auditor independence as set out in APES 110
Code of Ethics for Professional Accountants, as they did not involve reviewing or auditing the auditor’s own work, acting
in a management or decision-making capacity for the Company, acting as an advocate for the Company or jointly sharing
risks and rewards.
26 Auditor’s independence declaration
The auditor’s Independence Declaration is set out on page 21 and forms part of the Directors’ report for the financial
year ended 30 June 2017.
Signed in accordance with a resolution of the Directors.
Perth, 29 September 2017
David Messina
Managing Director
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WHITEBARK ENERGY LTD
Auditors Independence Declaration
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Independent Audit Report
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WHITEBARK ENERGY LTD
Independent Audit Report
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Independent Audit Report
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Independent Audit Report
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Independent Audit Report
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WHITEBARK ENERGY LTD
Statement of Profit or Loss and Other Comprehensive Income
for the year ended 30 June 2017
5
6
7
8
9
21
10
11
12
13
15
16
Revenue
Cost of goods and services sold
Gross Profit
Other income
Loss on disposal of available-for-sale financial assets
Profit/(loss) on disposal of assets
Gain on discount purchase
Expenses
Administrative expenses
Finance costs
Impairment expense
Share based payment expense
Other expenses
Loss before income tax expense from continuing operations
Income tax benefit
Loss after income tax expense for the period
Discontinued operations
Profit/(loss) for the year from discontinued operations
Profit/(loss) for the year
Loss attributable to:
Members of the parent entity
Non-controlling interests
Other comprehensive income, net of tax
Items reclassified through profit and loss:
Unrealised gain on marketable securities
Foreign currency translation
Total other comprehensive income for the period
Total comprehensive income/(loss) for the period
Total comprehensive income/(loss) for the year attributable to:
Members of the parent entity
Non-controlling interest
Total comprehensive income/(loss) attributable to owners of the parent:
Continuing operations
Discontinued operations
30-Jun-17
AUD
101,436
(105,886)
(4,450)
122,554
(13,242)
(31,223)
1,289,406
30-Jun-16
AUD
-
-
-
485,524
260,754
-
-
(1,758,750)
(74,105)
(52,123,882)
(29,455)
(675,968)
(1,399,582)
(79,565)
(3,938,165)
(67,367)
(828,220)
(53,299,115)
(5,566,621)
9,348,766
(43,950,349)
1,135,659
(4,430,962)
3,876,125
(40,074,224)
7,763,943
3,332,981
(40,064,362)
(9,862)
(40,074,224)
2,551,079
781,902
3,332,981
200,000
(48,484)
151,516
(39,922,708)
-
293,619
293,619
3,626,600
(39,912,846)
(9,862)
(39,922,708)
2,844,698
781,902
3,626,600
(43,798,833) (4,137,343)
7,763,943
3,876,125
3,626,600
(39,922,708)
Earnings/(loss) per share
Basic/diluted (cents per share)
Continuing operations
Discontinued operations
17
17
(4.7966)
(0.0012)
(4.7978)
0.3095
0.0948
0.4043
The accompanying notes form part of these financial statements.
2017 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Statement of Financial Position
as at 30 June 2017
Assets
Current Assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Assets classified as available-for-sale
Total current assets
Non-current Assets
Property, plant and equipment
Exploration and evaluation assets
Total non-current assets
Total assets
18
19
20
24
22
23
25
26
Liabilities
Current Liabilities
Trade and other payables
Provisions
Total current liabilities
Non-current liabilities
Provisions
Decommissioning liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Non-controlling interest
Accumulated losses
Total equity attributable to equity holders of the Consolidated Entity
29
30
31
26
27
30-Jun-17
AUD
30-Jun-16
AUD
4,856,883
280,574
240,886
400,000
5,778,343
3,321,814
143,562
88,329
-
3,553,705
5,225,806
2,077,749
7,303,555
13,081,898
100,004
48,012,854
48,112,858
51,666,563
651,783
65,480
717,263
554,036
112,112
666,148
37,132
5,207,868
5,245,000
5,962,263
7,119,635
39,944
-
39,944
706,092
50,960,471
52,646,771
1,629,955
-
(47,157,091)
7,119,635
52,646,771
1,448,984
3,957,445
(7,092,729)
50,960,471
The accompanying notes form part of these financial statements.
2017 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Statement of Changes in Equity
for the year ended 30 June 2017
Foreign
currency
translation
reserve
AUD
1,381,617
-
-
(48,484)
(48,484)
(48,484)
AUD
52,646,771
-
-
-
-
-
-
-
-
-
52,646,771
-
-
-
-
1,333,133
Share based
payments
reserve
Available-for-
sale reserve
Accumulated
Losses
Non-
controlling
interest
Total Equity
AUD
67,367
AUD
-
AUD
(7,092,729)
AUD
3,957,445
AUD
50,960,471
(40,064,362)
-
-
-
(40,064,362)
-
-
-
(9,862)
-
-
(9,862)
(40,064,362)
(9,862)
(48,484)
(48,484)
(40,122,708)
-
-
200,000
200,000
200,000
-
-
-
-
(47,157,091)
(3,947,583)
-
-
(3,947,583)
-
(3,947,583)
29,455
200,000
(3,718,128)
7,119,635
-
-
-
29,455
-
29,455
96,822
Foreign
currency
translation
reserve
AUD
1,412,938
-
-
293,619
293,619
293,619
AUD
66,952,804
-
-
-
-
-
-
-
-
-
-
-
(14,522,033)
196,000
20,000
-
-
(14,306,033)
52,646,771
-
-
-
-
-
(324,940)
(324,941)
1,381,617
-
-
-
-
67,367
-
67,367
67,367
Share based
payments
reserve
Available-for-
sale reserve
Accumulated
Losses
Non-
controlling
interest
AUD
-
AUD
-
AUD
(9,968,749)
AUD
2,706,585
Total Equity
AUD
61,103,578
-
2,551,079
781,902
-
-
-
-
-
-
-
-
-
-
-
-
-
2,551,079
-
-
781,902
-
-
2,551,079
-
-
781,902
293,619
293,619
3,626,600
-
-
-
-
-
324,940
324,940
(7,092,730)
468,958
-
-
-
-
-
468,958
3,957,445
468,958
(14,522,033)
196,000
20,000
67,367
-
(13,769,708)
50,960,471
For the period ended 30 June 2017
Share Capital
Balance at 1 July 2016
Total comprehensive income for the period
Profit attributable to members of the parent entity
Profit attributable to non-controlling interests
Foreign currency translation differences
Total other comprehensive income
Total comprehensive income for period
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Disposal of Non-controlling interest
Share options vested
Unrealised gain on marketable securities
Total contributions by and distributions to owners
Balance at 30 June 2017
For the year ended 30 June 2016
Share Capital
Balance at 1 July 2015
Total comprehensive income for the period
Profit attributable to members of the parent entity
Loss attributable to non-controlling interests
Other comprehensive income
Foreign currency translation differences
Total other comprehensive income
Total comprehensive income for period
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Accrued interest on shareholder loans
Demerger of Woma Energy Ltd share capital
Options exercised
Options issued
Share options vested
Share options expired
Total contributions by and distributions to owners
Balance at 30 June 2016
The accompanying notes form part of these financial statements.
2017 ANNUAL REPORT
Page | 29
WHITEBARK ENERGY LTD
Statement of Cash Flows
for the year ended 30 June 2017
Note
30-Jun-17
AUD
30-Jun-16
AUD
Cash flows from operating activities
Receipts from customers
Interest received
Receipt for Research and Development Rebate
Payment to suppliers and employees
Net cash used in operating activities
Cash flows from investing activities
Proceeds from sale of securities
Payment for securities
Cash disposed of on loss of control of subsidiary
Acquisition of interest in joint operation
Payment for exploration assets
Net cash used in investing activities
Cash flows from financing activities
Proceeds from exercise of options
Net cash from financing activities
Net increase/ (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at 30 June 2017
32
5,351
57,347
9,348,766
(2,809,286)
6,602,178
-
(200,000)
(125,538)
(4,024,287)
(717,284)
(5,067,109)
-
-
1,535,069
3,321,814
4,856,883
652,339
3,670
1,135,659
(2,350,889)
(559,221)
2,042,693
-
-
-
(613,293)
1,429,400
196,000
196,000
1,066,179
2,255,635
3,321,814
The accompanying notes form part of these financial statements.
2017 ANNUAL REPORT
Page | 30
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
1 Reporting entity
Whitebark Energy Limited (the ‘Company’) is domiciled and incorporated in Australia. The address of the Company’s
registered office is Level 2, 6 Thelma Street, West Perth WA 6005. The consolidated financial report of the consolidated
entity for the period ended 30 June 2017 comprises the Company and its subsidiaries. The consolidated entity is involved
in oil and gas exploration and production in Western Australia and Alberta, Canada.
The financial report was authorised for issue by the directors on 29 September 2017.
2 Basis of preparation
(a) Statement of Compliance
The financial report is a general purpose financial report which has been prepared in accordance with Australian
Accounting Standards (‘AASBs’) (including Australian Accounting Interpretations), other authoritative pronouncements
of the Australian Accounting Standards Board (‘AASB’) and the Corporations Act 2001. Australian Accounting Standards
set out accounting policies that the AASB has concluded would result in a financial report containing relevant and
reliable information about transactions, events and conditions to which they apply.
Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with the
International Financial Reporting Standards (IFRS).
Whitebark Energy Limited is a for-profit entity for the purpose of preparing the financial statements.
(b) Going concern
The accounts have been prepared on the going concern basis, which contemplates continuity of normal business
activities and the realisation of assets and settlement of liabilities in the normal course of business.
The Consolidated Entity reported a loss after tax of $40,074,224 for the year ended 30 June 2017 (2016: profit of
$3,332,981). Included within this loss was the exploration and development expenditure write off or impairment of
$48,670,684 (2016 $3,938,165) and the property, plant and equipment write off or impairment of $3,453,197. The net
working capital surplus of the Consolidated Entity at 30 June 2017 was $5,061,080 (2016: surplus of $2,887,557) and
the net increase in cash held during the year was $1,535,069 (2016: increase of $1,066,179).
The Directors believe it is appropriate to prepare these accounts on a going concern basis because:
•
•
•
The Company has $4,856,883 in cash reserves: and
The Directors also have an appropriate plan to contain certain operating and exploration expenditure if suitable
funding is unavailable.
The Directors believe the company will be successful in capital raising initiatives given its new portfolio of assets.
In the event that the consolidated entity is not able to continue as a going concern, it may be required to realise assets
and extinguish liabilities other than in the normal course of business and at amounts different to those stated in its
financial report.
(c) Basis of measurement
The financial report is prepared on an accruals basis and is based on the historical costs except that the following assets
and liabilities are stated at their fair value: financial instruments held for trading and financial instruments classified as
available-for-sale.
(d) Functional and presentation currency
These consolidated financial statements are presented in Australian dollars, which is the functional currency of the
Company. The functional currency of the Company’s United States of American subsidiary is USD and CAD for the
Canadian subsidiary.
The functional currency of each of the Group’s entities is measured using the currency of the primary economic
environment in which that entity operates.
(e) Critical accounting estimates and judgements
The preparation of a financial report in conformity with Australian Accounting Standards requires management to make
judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and
2017 ANNUAL REPORT
Page | 31
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of
making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates. These accounting policies have been consistently applied by each entity
in the consolidated group.
The Company’s accounting policy for the recognition of rehabilitation provisions requires significant estimates including
the magnitude of possible works for removal or treatment of waste materials and the extent of work required and the
associated costs of rehabilitation work. These uncertainties may result in future actual expenditure, different from the
amounts currently provided.
The provision recognised for each production well is periodically reviewed and updated based on the facts and
circumstances available at the time. Changes to the estimate future costs for operating sites are recognised in the
balance sheet by adjusting the rehabilitation asset and provision.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the
revision and future periods if the revision affects both current and future periods. In particular, information about
significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most
significant effect on the amount recognised in the financial statements are described in the following notes:
Note 22 and 23 – Impairment expense (see note 3(k))
Note 26 – Provisions (see note 3(r))
Note 34 – Share-based payment (see note 3(q)(iii))
(f) New and revised standards that are effective for these financial statements
A number of new and revised standards are effective for annual periods beginning on or after 1 July 2016. Information
on these new standards is presented below.
• AASB 2014-3 Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint
Operations (applicable for annual reporting periods commencing on or after 1 January 2016).
• AASB 2014-4 Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of
Depreciation and Amortisation (applicable for annual reporting periods commencing on or after 1 January 2016).
• AASB 2014-9 Amendments to Australian Accounting Standards – Equity Method in Separate Financial Statements
(applicable for annual reporting periods commencing on or after 1 January 2016).
• AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an
Investor and its Associate or Joint Venture (applicable for annual reporting periods commencing on or after 1
January 2016).
• AASB 2015-1 Amendments to Australian Accounting Standards – Annual Improvements to Australian Accounting
Standards 2012-2014 Cycle (applicable for annual reporting periods commencing on or after 1 January 2016).
• AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101
(applicable for annual reporting periods commencing on or after 1 January 2016).
• AASB 2015-5 Amendments to Australian Accounting Standards – Investment Entities: Applying the Consolidation
Exception (applicable for annual reporting periods commencing on or after 1 January 2016).
• AASB 2015-9 Amendments to Australian Accounting Standards – Scope and Application Paragraphs (applicable for
annual reporting periods commencing on or after 1 January 2016).
When these Standards were first adopted for the year ending 30 June 2017, there was no material impact on the
financial statements.
3 Summary of accounting policies
(a) Basis of consolidation
The Group financial statements consolidate those of the Parent Company and all of its subsidiaries as of 30 June 2017.
The Parent controls a subsidiary if it is exposed, or has rights, to variable returns from its involvement with the subsidiary
2017 ANNUAL REPORT
Page | 32
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
and has the ability to affect those returns through its power over the subsidiary. All subsidiaries have a reporting date
of 30 June.
All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains
and losses on transactions between Group companies. Where unrealised losses on intra-group asset sales are reversed
on consolidation, the underlying asset is also tested for impairment from a group perspective. Amounts reported in the
financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting
policies adopted by the Group.
Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the year are recognised
from the effective date of acquisition, or up to the effective date of disposal, as applicable.
Non-controlling interests, presented as part of equity, represent the portion of a subsidiary’s profit or loss and net assets
that is not held by the Group. The Group attributes total comprehensive income or loss of subsidiaries between the
owners of the parent and the non-controlling interests based on their respective ownership interests.
(b)
Business Combination
The Group applies the acquisition method in accounting for business combinations in accordance with AASB 3. The
consideration transferred by the Group to obtain control of a subsidiary is calculated as the sum of the acquisition-date
fair values of assets transferred, liabilities incurred and the equity interests issued by the Group, which includes the fair
value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as
incurred.
The Group recognises identifiable assets acquired and liabilities assumed in a business combination regardless of
whether they have been previously recognised in the acquiree’s financial statements prior to the acquisition. Assets
acquired and liabilities assumed are generally measured at their acquisition-date fair values.
Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum
of (a) fair value of consideration transferred, (b) the recognised amount of any non-controlling interest in the acquiree,
and (c) acquisition-date fair value of any existing equity interest in the acquiree, over the acquisition-date fair values of
identifiable net assets. If the fair values of identifiable net assets exceed the sum calculated above, the excess amount
(i.e. gain on a bargain purchase) is recognised in profit or loss immediately.
(c) Foreign currency
(i) Foreign currency transactions
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to Australian
dollars at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are
recognised in profit and loss. Non-monetary assets and liabilities that are measured in terms of historical cost in a
foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and
liabilities denominated in foreign currencies that are stated at fair value are translated to Australian dollars at foreign
exchange rates ruling at the dates the fair value was determined.
(ii) Financial statements of foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation,
are translated to Australian dollars at foreign exchange rates ruling at the balance sheet date. The revenues and
expenses of foreign operations are translated to Australian dollars at rates approximating to the foreign exchange rates
ruling at the dates of the transactions. Foreign exchange differences arising on retranslation are recognised in other
comprehensive income in a separate component of equity.
(d) Exploration and evaluation expenditure
Exploration and evaluation costs, including the costs of acquiring licences and the costs of acquiring the rights to explore,
are capitalised as exploration and evaluation assets on an area of interest basis.
Exploration and evaluation assets are only recognised if the rights of the area of interest are current and either:
•
the expenditures are expected to be recouped through successful development and exploitation of the area of
interest; or
2017 ANNUAL REPORT
Page | 33
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
•
activities in the area of interest have not at the reporting date, reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves and active and significant
operations in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are assessed for impairment if (i) sufficient data exists to determine technical
feasibility and commercial viability, and (ii) facts and circumstances suggest that the carrying amount exceeds the
recoverable amount (see impairment accounting policy). For the purposes of impairment testing, exploration and
evaluation assets are allocated to cash-generating units to which the exploration activity relates. The cash generating
unit shall not be larger than the area of interest.
Once the technical feasibility and commercial viability of the extraction of petroleum resources in an area of interest
are demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment
and then reclassified from exploration and evaluation expenditure to property plant and equipment assets.
(e) Determination of Recoverability of Asset Carrying Values
The recoverability of development and production asset carrying values are assessed at a cash-generating unit (“CGU”)
level. Determination of what constitutes a CGU is subject to management judgements. The asset composition of a CGU
can directly impact the recoverability of the assets included therein. The key estimates used in the determination of
cash flows from oil and natural gas reserves include the following:
• Reserves – Assumptions that are valid at the time of reserve estimation may change significantly when new
information becomes available. Changes in forward price estimates, production costs or recovery rates may change
the economic status of reserves and may ultimately result in reserves being restated.
• Oil and natural gas prices – Forward price estimates are used in the cash flow model. Commodity prices can
fluctuate for a variety of reasons including supply and demand fundamentals, inventory levels, exchange rates,
weather, and economic and geopolitical factors.
• Discount rate – The discount rate used to calculate the net present value of cash flows is based on estimates of an
approximate industry peer group weighted average cost of capital. Changes in the general economic environment
could result in significant changes to this estimate.
(f)
Reserve estimates
Proved plus probable reserves are defined as the “best estimate” of quantities of oil, natural gas and related substances
estimated to be commercially recoverable from known accumulations, from a given date forward based on drilling,
geological, geophysical and engineering data, the use of established technology and specified economic conditions. It
is equally likely that the actual remaining quantities recovered will be greater than or less than the sum of the estimated
proved plus probable reserves. The estimates are made using all available geological and reservoir data as well as
historical production data. Estimates are reviewed as appropriate. Revisions occur as a result of changes in prices,
costs, fiscal regimes and reservoir performance or changes in the Company’s plans with respect to future development
or operating practices.
(g) Restoration, rehabilitation and environmental costs and decommissioning obligations
Restoration, rehabilitation and environmental costs necessitated by exploration and evaluation activities are accrued at
the time of those activities and treated as exploration and evaluation expenditure.
Restoration, rehabilitation and environmental obligations recognised include the costs of reclamation and subsequent
monitoring of the environment.
Costs are estimated on the basis of current assessed costs, current legal requirements and current technology, which
are discounted to their present value. The present value of the costs is included as part of the cost of the exploration
and evaluation asset or the Property plant and equipment asset. Estimates are reassessed at least annually. Changes in
estimates are dealt with prospectively, with any amounts that would have been written off or provided against under
accounting policy for exploration and evaluation immediately written off.
Amounts recorded for decommissioning obligations and the related accretion expense requires the use of estimates
with respect to the amount and timing of decommissioning expenditures. Actual costs and cash outflows can differ
from estimates because of changes in laws and regulations, public expectations, market conditions, discovery and
analysis of site conditions and changes in technology. Other provisions are recognized in the period when it becomes
probable that there will be future cash outflow.
2017 ANNUAL REPORT
Page | 34
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
(h)
Development Expenditure
Development expenditure represents the accumulated exploration, evaluation, land and development expenditure
incurred by or on behalf of the Group in relation to areas of interest in which mining of hydrocarbon resource has
commenced.
When further development expenditure is incurred in respect of an asset after commencement of production, such
expenditure is carried forward as part of the asset only when substantial future economic benefits are thereby
established, otherwise such expenditure is classified as part of the cost of production.
Amortisation of costs is provided on the unit-of-production method with separate calculations being made for each
hydrocarbon resource. The unit-of-production basis results in an amortisation charge proportional to the depletion of
the estimated recoverable reserves. In some circumstances, where conversion of resources into reserves is expected,
some elements of resources may be included. Development and land expenditure still to be incurred in relation to the
current reserves are included in the amortisation calculation. Where the life of the assets are shorter than the reserves
life their costs are amortised based on the useful life of the assets.
The estimated recoverable reserves and life of the development and the remaining useful life of each class of asset are
reassessed at least annually. Where there is a change in the reserves/resources amortisation rates are correspondingly
adjusted.
(i) Other receivables
Other receivables are recorded at amounts due less any allowance for doubtful debts.
(j)
Cash and cash equivalents
Cash and cash equivalents comprise cash balances, short term bills and call deposits. Cash equivalents include deposits
and other highly liquid investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value. Bank overdrafts that are repayable
on demand and form an integral part of the consolidated entity’s cash management are included as a component of
cash and cash equivalents for the purpose of the statement of cash flow.
(k)
Impairment of non-financial assets
The carrying amounts of the consolidated entity’s non-financial assets, other than deferred tax assets, are reviewed at each
balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset’s
recoverable amount is estimated.
An impairment loss is recognised whenever the carrying amount of an asset or its cash generating unit exceeds its
recoverable amount. Impairment losses are recognised in the profit and loss unless the asset has previously been
revalued, in which case the impairment loss is recognised as a reversal to the extent of that previous revaluation with
any excess recognised through profit or loss.
Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of
any goodwill allocated to the cash-generating unit (group of units) and then, to reduce the carrying amount of the other
assets in the unit (group of units) on a pro rata basis.
Reversals of impairment
Impairment losses, other than in respect of goodwill, are reversed when there is an indication that the impairment loss
may no longer exist and there has been a change in the estimate used to determine the recoverable amount.
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
(l)
Share capital
(i) Dividends
Dividends are recognised as a liability in the period in which they are declared.
(ii) Transaction costs
Transaction costs of an equity transaction are accounted for as a deduction from equity, net of any related income tax
benefit.
2017 ANNUAL REPORT
Page | 35
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
(m) Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing the profit/(loss) attributable to equity holders of the Company,
excluding any costs of servicing equity other than ordinary shares, by weighted average number of ordinary shares
outstanding during the financial year, adjusted for the bonus elements in ordinary shares issued during the year.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and
the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive
potential ordinary shares.
(n) Property, plant and equipment
Buildings, IT equipment and other equipment (comprising fittings and furniture) are initially recognised at acquisition
cost or manufacturing cost, including any costs directly attributable to bringing the assets to the location and condition
necessary for it to be capable of operating in the manner intended by the Group’s management. Buildings and IT
equipment also include leasehold property held under a finance lease (see note 39). Buildings, IT equipment and other
equipment are subsequently measured using the cost model, cost less subsequent depreciation and impairment losses.
Developed and producing assets are measured at cost less accumulated depreciation and accumulated impairment
losses. Costs incurred subsequent to the determination of technical feasibility and commercial viability and the costs
of replacing parts of property, plant and equipment are recognized as oil and natural gas interests only when they
increase the future economic benefits embodied in the specific assets to which they relate. All other expenditures are
recognised in earnings as incurred. Such capitalised oil and gas interests generally represent costs incurred in developing
proven and/or probable reserves and bringing on or enhancing production from such reserves. The carrying amount of
any replaced or sold component is derecognised. The costs of periodic servicing of property plant and equipment is
recognised in earnings.
(o) Depletion and depreciation
The net carrying value of developed and producing assets are depleted using the unit of production method by reference
to the ratio of production in the period to the related proven and probable reserves, taking into account estimated
future development costs necessary to bring those reserves into production. Future development costs are estimated
taking into account the level of development required to produce the reserves. These estimates are reviewed by
independent reserve engineers on an annual basis.
Proven and probable reserves are estimated using independent reserve engineer reports and represent the estimated
quantities of oil, natural gas and natural gas liquids which geological, geophysical and engineering data demonstrate
with a specified degree of certainty to be recoverable in future years from known reservoirs and which are considered
commercially producible.
In determining reserves for use in the depletion and impairment calculations, a boe conversion ratio of six thousand
cubic feet of natural gas (“mcf”) to one barrel of oil (“bbl”) is used as an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in the
reserve reports are derived by converting natural gas to oil in the ratio of six mcf of gas to one barrel of oil.
For other assets, depreciation is recognized on a straight-line basis to write down the cost less estimated residual value
of buildings, IT equipment and other equipment. The following useful lives are applied:
• Buildings: 40 years
•
IT equipment: 4 years
• Other equipment: 4-5 years
In the case of leasehold property, expected useful lives are determined by reference to comparable owned assets.
Material residual value estimates and estimates of useful life are updated as required, but at least annually.
Gains or losses arising on the disposal of property, plant and equipment are determined as the difference between the
disposal proceeds and the carrying amount of the assets and are recognised in profit and loss.
2017 ANNUAL REPORT
Page | 36
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
(p)
Fair value measurement
The estimated fair value of financial assets and liabilities, by their very nature, are subject to measurement uncertainty.
The group measures financial and non-financial assets at fair value at each balance sheet date. Fair value is the price
that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the
asset or transfer the liability takes place either:
•
•
In the principal market for the asset or liability; or
In the absence of a principal market, in the most advantageous market for the asset or liability.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participants ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use.
The group uses valuation techniques that are appropriate in the circumstances ad for which sufficient data are available
to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
The following describes the grouping of financial instruments.
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in the active market for identical
assets or liabilities.
Level 2 fair value measurements are those derived from inputs other than quoted prices that are observable for the
asset or liability, either directly (ie. as prices) or indirectly (derived from prices).
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability
that are not based on observable market data (unobservable inputs).
The carrying values of the Company’s cash and cash equivalents, accounts receivable and accounts payable and accrued
liabilities approximated their fair values due to the short term nature of the instruments.
(q) Employee Benefits
(i) Long Term Employee Benefits
The Company’s liabilities for long service leave are included in both short term employee benefits and other long term
benefits as they are not expected to be settled wholly within twelve (12) months after the end of the period in which
the employees render the related services. They are measured at the present value of the expected future payments to
be made to employees. The expected future payments incorporate anticipated future wage and salary levels,
experience of employee departures and periods of service, and are discounted at rates determined by reference to
market yields at the end of the reporting period on high quality corporate bonds that have maturity dates that
approximate the timing of the estimated future cash outflows. Any re-measurements arising from experience
adjustments and changes in assumptions are recognised in profit or loss in the periods in which the changes occur.
The Company presents employee benefit obligations as current liabilities in the statement of financial position if the
Company does not have an unconditional right to defer settlement for at least twelve (12) months after the reporting
period, irrespective of when the actual settlement is expected to take place.
(ii) Short Term Employee Benefits
Short-term employee benefits are benefits, other than termination benefits, that are expected to be settled wholly
within twelve (12) months after the end of the period in which the employees render the related service. Examples of
such benefits include wages and salaries, non-monetary benefits and accumulating sick leave. Short-term employee
benefits are measured at the undiscounted amounts expected to be paid when the liabilities are settled.
(iii) Share-based payment transactions
The share option program allows the consolidated entity’s employees and consultants to acquire shares of the
Company. The fair value of options granted is recognised as an employee benefit or consultant expense with a
corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the
employees become unconditionally entitled to the options. The fair value of the options granted is measured using the
2017 ANNUAL REPORT
Page | 37
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
Binomial and Black Scholes option-pricing models, taking into account the terms and conditions upon which the options
were granted. The amount recognised as an expense is adjusted to reflect the actual number of share options that vest
except where forfeiture is only due to share prices not achieving the threshold for vesting.
(r) Provisions
A provision is recognised in the statement of financial position when the consolidated entity has a present, legal or
constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required
to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows
at a pre-tax rate that reflects current market assessments of the time value of money and, when appropriate, the risks
specific to the liability.
(s) Trade and other payables
Trade and other payables are non-interest bearing liabilities stated at cost and settled within 30 days.
(t) Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the entity and the revenue
can be reliably measured.
(i) Net financial income
Net financial income comprises interest payable on borrowings calculated using the effective interest method, interest
receivable on funds invested and dividend income.
Interest income is recognised in the profit and loss as it accrues, using the effective interest method. Dividend income
is recognised in the profit and loss on the date the entity’s right to receive payments is established which in the case of
quoted securities is the ex-dividend date.
(ii) Sales revenue
Revenue from the sale of oil and natural gas will be recorded when the significant risks and rewards of ownership of the
product is transferred to the byer, which is usually when legal title passes to the external party and when collection is
reasonably assured.
Royalty income is recognised in petroleum and natural gas revenues as it accrues in accordance with the terms of the
overriding royalty agreements.
(u)
Income tax
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable
income tax rates enacted, or substantially enacted, as at the end of the reporting period. Included in the income tax
benefit are research and development grants provided during the year.
Current tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the
relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the
year as well as unused tax losses.
Current and deferred income tax expense (income) is charged or credited directly to equity instead of the profit or loss
when the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where
amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised
from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on
accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset
is realised or the liability is settled, based on tax rates enacted or substantively enacted at the end of the reporting
period. Their measurement also reflects the manner in which management expects to recover or settle the carrying
amount of the related asset or liability.
2017 ANNUAL REPORT
Page | 38
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is
probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures,
deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can
be controlled and it is not probable that the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net
settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets
and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate
to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities
where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability
will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered
or settled.
Amounts receivable from the Australian Tax Office in respect of research and development tax concession claims are
recognised as a tax benefit at the time the claim is lodged and received with the Australian Tax Office.
(v) Segment reporting
An operating segment is a component of the consolidated entity that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the
consolidated entity’s other components. Based on the information used for internal reporting purposes by the chief
operating decision maker, being the executive management that makes strategic decisions, at 30 June 2017 the group’s
assets are in two reportable geographical segments being Australia and Canada.
(w) Goods and Services Tax
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the
amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as
part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or
payable to, the ATO is included as a current asset or liability in the statement of financial position.
Cash flows are included in the statement of cash flow on a gross basis. The GST components of cash flows arising from
investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash
flows.
(x) Financial instruments
(i) Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity securities, trade and other receivables, cash and
cash equivalents, loans and borrowings, and trade and other payables.
Non-derivative instruments are recognised initially at fair value plus, for instruments not at fair value through profit or
loss, any directly attributable transaction costs. Subsequent to initial recognition non-derivative financial instruments
are measured as described below.
A financial instrument is recognised if the consolidated entity becomes a party to the contractual provisions of the
instrument. Financial assets are derecognised if the consolidated entity’s contractual rights to the cash flows from the
financial assets expire or if the consolidated entity transfers the financial asset to another party without retaining control
or substantially all risks and rewards of the asset.
(ii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market and are subsequently measured at amortised cost. They arise when the consolidated entity provides
money, goods or services directly to a debtor with no intention of selling the receivable. They are included in current
assets, except for those with maturities greater than 12 months after the reporting date which are classified as non-
current assets. Loans and receivables are included in receivables in the statement of financial position.
(iii) Financial Liabilities
2017 ANNUAL REPORT
Page | 39
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
Non-derivative financial liabilities are subsequently measured at amortised cost.
(iv) Available-for-sale (AFS) financial assets
Available-for-sale (AFS) financial assets are non-derivative financial assets that are either designated to this category or
do not qualify for inclusion in any of the other categories of financial assets. The Group’s AFS financial assets include
listed securities. Available-for-sale (AFS) financial assets are measured at fair value. Gains and losses are recognised in
other comprehensive income and reported within the AFS reserve within equity, except for impairment losses and
foreign exchange differences on monetary assets, which are recognised in profit or loss. When the asset is disposed of
or is determined to be impaired the cumulative gain or loss recognised in other comprehensive income is reclassified
from the equity reserve to profit or loss and presented as a reclassification adjustment within other comprehensive
income. Interest is calculated using the effective interest method and dividends are recognised in profit or loss within
‘finance income’.
(v) Impairment
The consolidated entity assesses at each balance date whether there is objective evidence that a financial asset or group
of financial assets is impaired. In the case of equity securities classified as available-for-sale, a significant or prolonged
decline in the fair value of a security below its cost is considered as an indicator that the securities are impaired. If any
such evidence exists for available-for-sale financial assets, the cumulative loss - measured as the difference between
the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in
profit or loss - is removed from equity and recognised in the profit and loss. Impairment losses recognised in the profit
and loss on equity instruments classified as available-for-sale are not reversed through the profit and loss.
If there is evidence of impairment for any of the consolidated entity’s financial assets carried at amortised cost, the loss
is measured as the difference between the asset’s carrying amount and the present value of estimated future cash
flows, excluding future credit losses that have not been incurred. The cash flows are discounted at the financial asset’s
original effective interest rate. The loss is recognised in the profit and loss.
(vi) Fair value
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to
determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar
instruments and option pricing models.
(vii) De-recognition
Financial assets are de-recognised where the contractual rights to receipt of cash flows expires or the asset is transferred
to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits
associated with the asset. Financial liabilities are de-recognised where the related obligations are either discharged,
cancelled or expired. The difference between the carrying value of the financial liability extinguished or transferred to
another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed,
is recognised in profit or loss.
Accounting for net finance income is discussed in note 3(t)(i).
(y) Adoption of new and revised accounting standards
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
(i) New standards and interpretations not yet adopted
The following standards, amendments to standards and interpretations have been identified as those which may impact
the entity in the period of initial application. They are available for early adoption at 30 June 2017, but have not been
applied in preparing this financial report.
• AASB 9 Financial Instruments and the relevant amending standards (December 2014) (applicable for annual
reporting periods commencing on or after 1 January 2018).
• AASB 15 Revenue from Contracts with Customers (applicable for annual reporting periods commencing on or after
1 January 2018).
• AASB 16 Leases (applicable for annual reporting periods commencing on or after 1 January 2019).
2017 ANNUAL REPORT
Page | 40
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
• AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15 (applicable for annual
reporting periods commencing on or after 1 January 2018)
• AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014). (applicable
for annual reporting periods commencing on or after 1 January 2018)
• AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an
Investor an its Associate or Joint Venture (applicable for annual reporting periods commencing on or after 1 January
2018)
• AASB 2015-8 Amendments to Australian Accounting Standards – Effective Date of AASB 15 (applicable for annual
reporting periods commencing on or after 1 January 2017).
• AASB 2016-1 Amendments to Australian Accounting Standards – Recognition of Deferred Tax Assets for Unrealised
Losses (applicable for annual reporting periods commencing on or after 1 January 2017).
• AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107
(applicable for annual reporting periods commencing on or after 1 January 2017).
• AASB 2016-3 Amendments to Australian Accounting Standards – Clarifications to AASB 15 (applicable for annual
reporting periods commencing on or after 1 January 2018).
• AASB 2016-5 Amendments to Australian Accounting Standards – Classification and Measurement of Share-based
Payment Transactions (applicable for annual reporting periods commencing on or after 1 January 2018).
• AASB 2017-1 Amendments to Australian Accounting Standards – Transfers of Investment Property, Annual
Improvement 2014-2016 Cycle and Other Amendments (applicable for annual reporting periods commencing on or
after 1 January 2018).
• AASB 2017-2 Amendments to Australian Accounting Standards – Further Annual Improvement 2014-2016 Cycle
(applicable for annual reporting periods commencing on or after 1 January 2018).
•
•
Interpretation 22 Foreign Currency Transactions and Advance Consideration (applicable for annual reporting
periods commencing on or after 1 January 2018).
IFRIC 23 Uncertainty Over Income Tax Treatments (applicable for annual reporting periods commencing on or after
1 January 2019).
The entity is yet to undertake a detailed assessment of the impact of these amendments. However, based on the entity’s
preliminary assessment, the amendments are not expected to have a material impact on the transactions and balances
recognised in the financial statements when they are first adopted.
2017 ANNUAL REPORT
Page | 41
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
4 Segment reporting
During the period the group operated in three business segments (three geographical areas) – exploration, development
and production of oil and gas – Australia, Canada and USA. The chief operating decision maker considers the
discontinued operations to be a separate reporting segment from the geographical segments.
The group has identified its operating segment based on the internal report that is reviewed and used by the Board of
directors (chief operating decision maker) in assessing performance and determining the allocation of resources.
2017
Revenue
Sales to external customers
Total Sales Revenue
Financial income
Other income
Total Revenue
Segment result
Depreciation and amortisation
Impairment of assets
Profit before income tax expense
Income tax
Profit after income tax expense
Assets
Total current assets
Total non-current assets
Total assets
Liabilities
Total current liabilities
Total non-current liabilities
Total liabilities
2016
Revenue
Sales to external customers
Total Sales Revenue
Financial income
Other income
Total Revenue
Segment result
Loss on disposal of available for sale financial assets
Depreciation and amortisation
Impairment of assets
Profit before income tax expense
Income tax
Profit after income tax expense
Assets
Total current assets
Total non-current assets
Total assets
Liabilities
Total current liabilities
Total non-current liabilities
Total liabilities
Australia
30-Jun-17
Canada
30-Jun-17
Discontinued
30-Jun-17
Total Segment
30-Jun-17
USA
30-Jun-17
Consolidated
30-Jun-17
-
-
103,312
16,836
120,148
1,089,877
(24,917)
(52,123,882)
(51,058,922)
5,582,943
(2,125,048)
3,457,895
(448,185)
(42,445)
(490,630)
101,436
101,436
-
-
101,436
(2,235,670)
-
-
(2,235,670)
195,400
9,428,603
9,624,003
(269,078)
(5,202,555)
(5,471,633)
-
-
2,406
-
2,406
101,436
101,436
105,718
16,836
223,990
3,876,125
-
-
3,876,125
2,730,332
(24,917)
(52,123,882)
(49,418,467)
-
-
-
-
-
-
5,778,343
7,303,555
13,081,898
(717,263)
(5,245,000)
(5,962,263)
-
-
-
-
-
(4,523)
-
-
(4,523)
-
-
-
-
-
-
101,436
101,436
105,718
16,836
223,990
2,725,809
(24,917)
(52,123,882)
(49,422,990)
9,348,766
(40,074,224)
5,778,343
7,303,555
13,081,898
(717,263)
(5,245,000)
(5,962,263)
Australia
30-Jun-16
Canada
30-Jun-16
Discontinued
30-Jun-16
Total Segment
30-Jun-16
USA
30-Jun-16
Consolidated
30-Jun-16
-
-
3,641
481,881
485,522
(1,620,940)
-
(21,473)
(3,938,165)
(5,580,578)
3,382,863
48,112,858
51,495,721
663,887
39,944
703,831
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
34,790
34,790
29
-
34,819
8,314,554
(546,389)
(4,087)
(135)
7,763,943
170,842
-
170,842
2,261
-
2,261
34,790
34,790
3,670
481,881
520,341
6,693,614
(546,389)
(25,560)
(3,938,300)
2,183,365
3,553,705
48,112,858
51,666,563
666,148
39,944
706,092
-
-
-
-
-
13,957
-
-
-
13,957
-
-
-
-
-
-
34,790
34,790
3,670
481,881
520,341
6,707,571
(546,389)
(25,560)
(3,938,300)
2,197,322
1,135,659
3,332,981
3,553,705
48,112,858
51,666,563
666,148
39,944
706,092
5 Revenue from continuing operations
Sales revenue
Product sales
6 Cost of goods and services sold
Production expenditure
30-Jun-17
AUD
30-Jun-16
AUD
101,436
101,436
30-Jun-17
AUD
30-Jun-16
AUD
(105,886)
(105,886)
-
-
-
-
2017 ANNUAL REPORT
Page | 42
7 Other income
Interest income
Indirect overhead
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
30-Jun-17
AUD
30-Jun-16
AUD
105,718
16,836
122,554
3,643
481,881
485,524
8 Loss on disposal of available-for-sale financial assets
Gain on disposal of financial assets - Leucrotta Exploration Inc
Loss on disposal of financial assets - Carnaby Energy Limited
9 Profit/ (loss) on disposal of assets
Loss on write off of depreciable assets - Latent Petroleum Pty Ltd
10 Administration expenses
Audit and review of financial reports
Directors' fees
Executive fees
Administration and finance support
Corporate costs
Insurance
Office costs
General and administration
11 Finance costs
Interest expense
Establishment fee - facility
Foreign currency loss
12 Impairment expenses
Impairment - Warro Joint Venture
Impairment - Canadian assets
Impairment - other
30-Jun-17
AUD
30-Jun-16
AUD
-
(13,242)
(13,242)
260,754
-
260,754
30-Jun-17
AUD
30-Jun-16
AUD
(31,223)
(31,223)
-
-
30-Jun-17
AUD
30-Jun-16
AUD
(72,773)
(148,184)
(734,650)
(415,942)
(69,544)
(15,538)
(92,989)
(209,130)
(1,758,750)
(96,446)
(144,605)
(498,652)
(202,548)
(43,474)
(14,396)
(86,839)
(312,622)
(1,399,582)
30-Jun-17
AUD
30-Jun-16
AUD
(403)
(74,063)
361
(74,105)
(212)
(148,125)
68,772
(79,565)
30-Jun-17
AUD
30-Jun-16
AUD
(48,670,684)
(3,453,198)
-
(52,123,882)
-
-
(3,938,165)
(3,938,165)
In determining our impairment position and the appropriateness of continuing to carry forward costs in relation to the
Warro Project consideration has been given to the above, current market conditions for junior mining exploration
companies, the Company’s market capitalisation along with the announcement made by the Company’s JV partner,
Alcoa Corporation in early January 2017 that it had recorded an impairment charge against the carrying value of the
Warro project recorded in Alcoa’s accounts.
2017 ANNUAL REPORT
Page | 43
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
As a result of this review of the Warro project, it is considered prudent that the Company make an impairment charge
of $48,670,684 in the current period
In determining our impairment position of the Canadian assets the Company evaluated its developed and producing
CGU for indicators of impairment. The developed and producing CGU consists of production facilities, wells, land and
associated reserves. The recoverable amount of the CGU’s has been established by reference to an independently
prepared Reserve Report. An impairment amount of $3,475,336 has been charged in relation to the developed and
producing assets.
13 Other expenses
Depreciation and amortisation
Project costs
Legal fees
Commissions expense
Bad debt expense
Tax advisory services
Accountancy services
Consultancy fees
14 Auditor remuneration
Audit and review of financial statements
- auditors of Whitebark Energy Limited - Grant Thornton Australia
remuneration for audit and review of financial statements
Other services
- auditors of Whitebark Energy Limited - Grant Thornton Australia
Taxation compliance
Taxation advice
Due diligence services
Total other services remuneration
Total auditors remuneration
30-Jun-17
AUD
30-Jun-16
AUD
(24,917)
(340,430)
(26,504)
-
(23,943)
(254,050)
68,450
(74,574)
(675,968)
(21,473)
(202,651)
(54,051)
(5,038)
(67,048)
(119,065)
(32,050)
(326,844)
(828,220)
30-Jun-17
AUD
30-Jun-16
AUD
(72,773)
(9,550)
(1,950)
(2,000)
(13,500)
(86,273)
-
(96,446)
(5,815)
-
-
(5,815)
(102,261)
2017 ANNUAL REPORT
Page | 44
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
15 Income tax benefit
Current income tax expense/(benefit)
Income tax benefit - discontinued operations
Deferred tax - origination and reversal of temporary differences
Under/overprovision for tax - prior year
Aggregate income tax expense/(benefit)
Deferred tax included in income tax expense comprises:
Increase in deferred tax liabilities
Increase in deferred tax assets
Deferred tax - origination and reversal of temporary differences
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax from continuing operations
Tax at the statutory rate of 30%
Adjustment for tax rate difference (Canada 25%)
Tax effect amounts which are not deductible/(taxable)
in calculating taxable income:
Share-based payments
Debt forgiveness
Gain on deconsolidation
Impairment
Sundry items
Deferred tax asset on losses/(recouped) not recognised - Australia
Deferred tax asset on losses not recognised - Canada
Deferred tax asset on temporary differences not recognised - Australia
Deferred tax asset on temporary differences not recognised - Canada
Deferred tax liability on temporary differences not previously recognised
Recoupment of losses not previously recognised
Research and development tax offset
Under/overprovision for tax - prior year
30-Jun-17
AUD
(9,348,766)
-
-
-
(9,348,766)
30-Jun-16
AUD
(1,135,659)
(572,549)
-
-
(1,708,208)
-
-
-
-
-
-
(49,422,991)
(13,591,322)
56,623
(13,534,699)
1,624,769
487,431
42,141
529,572
8,100
-
(1,075,721)
12,754,570
67,831
20,210
842,167
(2,427,962)
-
142,563
(1,779,919)
(893,450)
809,302
176,585
361,247
432,785
-
-
(9,348,766)
-
(619,816)
62,397
1,244,078
206,791
-
(572,549)
(1,135,659)
-
Income tax benefit
(9,348,766)
(1,708,208)
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against
which the asset can be utilised. It is in the opinion of management of the Company that there will be no taxable profits
generated in the near future and the deferred tax asset is not to be recognised.
Closing balance of unrecognised Deferred Tax Assets on tax losses carried forward and temporary differences:
Australian Operations
Deferred tax assets - temporary differences
Deferred tax assets - tax losses
Deferred tax liabilities - temporary differences
Net deferred tax asset
120,892
6,643,676
(70,958)
6,693,610
Overseas Operations
Deferred tax assets - temporary differences
Deferred tax assets - tax losses
Deferred tax assets - capital losses
Deferred tax liabilities - temporary differences
Net deferred tax asset
1,301,967
167,688
-
(868,998)
600,657
151,190
11,967,810
(490,804)
11,628,196
-
39,152
19,012
-
58,164
2017 ANNUAL REPORT
Page | 45
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
16 Discontinued operations
Whitebark Energy disposed of its shareholding in Carnaby Energy Limited (13,750,000 ordinary shares) on the 26th June
2017 for nil consideration.
The results of the discontinued operations included in the statement of profit and loss and other comprehensive income
are set out below.
The 2016 balances include the results from the demerger of Woma Energy Limited.
Results of the discontinued operations for the period:
Revenue
Expenses
Profit before tax
Attributable income tax benefit
Gain on sale of discontinued operations
Gain on sale of discontinued operations
Cash flows from discontinued operations
Net cash flows from operating activities
Net cash flows from investing activities
Net cash flows
Effects on disposal on the financial position of the group
Current assets
Cash and cash equivalents
Trade and other receivables
Current Liabilities
Trade and other payables
Net assets and liabilities disposed of
Consideration received
Gain on sale of discontinued operation
30-Jun-17
AUD
30-Jun-16
AUD
8,728
(38,224)
(29,496)
-
(29,496)
3,905,621
3,876,125
274,133
(1,175,944)
(901,811)
572,549
(329,262)
8,093,205
7,763,943
68,599
-
68,599
(456,338)
(625,023)
(456,338)
30-Jun-16
(125,851)
(292)
90,561
(35,582)
3,941,203
3,905,621
2017 ANNUAL REPORT
Page | 46
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
17 Earnings/(loss) per share
The calculation of basic loss per share at 30 June 2017 of 4.7978 cents per share (30 June 2016 basic gain: 0.4043 cents
per share) was based on the loss attributable to the ordinary shareholders of $40,074,224 (30 June 2016 gain:
$3,332,981) and a weighted average number of ordinary shares outstanding during the year ended 30 June 2017 of
835,264,337 (30 June 2016: 824,377,274 shares) being calculated as follows:
Earnings per share
Loss attributable to the ordinary shareholders
Profit/(loss) for the period
Attributed to:
Members of the parent entity
Non-controlling interests
Weighted average number of ordinary shares
Opening balance
Movement during the year
Earnings/(loss) - cents per share
Continuing operations
Discontinued operations
30-Jun-17
AUD
30-Jun-16
AUD
(40,074,224)
(40,064,362)
(9,862)
835,264,337
-
835,264,337
(4.7978)
(4.7966)
(0.0012)
(4.7978)
3,332,981
2,551,079
781,902
806,819,893
17,557,381
824,377,274
0.4043
0.3095
0.0948
0.4043
12,675,000 options (refer Note 34) are not included in calculating diluted EPS because the effect is anti-dilutive.
18 Cash and cash equivalents
Cash at bank
Term deposits
30-Jun-17
AUD
30-Jun-16
AUD
816,883
4,040,000
4,856,883
3,301,194
20,620
3,321,814
Effective interest rates were 2.5% - 2.75% and average maturity was 45 days.
19 Trade and other receivables
Trade receivables
30-Jun-17
AUD
30-Jun-16
AUD
280,574
280,574
143,562
143,562
All amounts are short term. The net carrying value of trade receivables is considered a reasonable approximation of
fair value.
20 Other current assets
Prepayments
30-Jun-17
AUD
30-Jun-16
AUD
240,886
240,886
88,329
88,329
2017 ANNUAL REPORT
Page | 47
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
21 Business Combination
On 23rd May 2017 Whitebark Energy Ltd completed the acquisition of 20% working interest in the assets of Point Loma
Resources Ltd in Alberta, Canada.
The property plant and equipment fair value is based on the discounted proved plus probable reserves acquired as
determined by an independent reserves evaluation. The exploration and evaluation assets, comprising undeveloped
land, is based on internal estimates with reference to recent Crown sales. The decommissioning obligations assumed
are based on the Alberta Energy Regulator’s estimated abandonment liability amount discounted by the credit adjusted
interest rate of 10%.
Any costs associated with the acquisition of the 20% working interest have been included in the Statement of Profit or
Loss.
The estimated fair values of the assets and liabilities acquired is as follows:
Property, plant and equipment including land, production facilities
and producing wells
Exploration and evaluation
Decommissioning obligations assumed
22
23
27
Cash paid to Vendor by Whitebark Energy Limited
Gain on discount acquisition
30-Jun-17
AUD
5,638,548
1,900,117
(2,224,972)
5,313,693
4,024,287
(1,289,406)
Other costs amounting to $63,836 are included as part of the fair value of assets acquired.
The gain on bargain purchase has arisen primarily due to the variation in the accounting treatment of decommissioning
liabilities being measured at their acquisition date fair value in accordance with IFRS 13 for business combinations and
then subsequent to initial measurement (ie. Day 2), these provisions are to be measured using the principles in IAS 37.
The acquired net assets contributed petroleum and natural gas revenues of $101,436 and operating loss of $4,450 since
23 May 2017. Had the acquisition closed on 1 July 2016 Whitebark’s estimated petroleum revenue would have been
approximately $1,370,000 and operating income would have increased by approximately $305,000.
2017 ANNUAL REPORT
Page | 48
22 Property, plant and equipment
Plant and equipment at cost
Less: accumulated depreciation
Impairment
Property, plant and equipment
Reconciliation of carrying amounts
Developed and Producing
Opening balance
Acquisition through business combination
Asset retirement obligation asset
Additions
Foreign exchange
Impairment
Depletion
Land and buildings
Opening balance
Disposal
Depreciation expense
Furniture and Fixtures
Opening balance
Disposal
Depreciation expense
Office equipment
Opening balance
Additions
Disposal
Depreciation expense
Software Assets
Opening balance
Depreciation expense
Motor vehicles
Opening balance
Depreciation expense
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
30-Jun-17
AUD
30-Jun-16
AUD
8,765,220
(64,078)
(3,475,336)
5,225,806
-
153,989
(53,985)
100,004
-
21
-
5,638,548
2,982,896
35,542
(767)
(3,475,336)
(3,576)
5,177,307
21,283
(21,237)
(46)
-
5,892
(5,516)
(75)
301
13,759
4,377
(3,738)
(4,282)
10,116
37,048
(14,436)
22,612
22,022
(6,552)
15,470
5,225,806
-
-
-
-
-
-
-
-
21,830
-
(547)
21,283
6,778
-
(886)
5,892
42,125
-
(18,409)
(9,957)
13,759
51,484
(14,436)
37,048
28,574
(6,552)
22,022
100,004
Impairment test of property, plant and equipment
The recoverable amount of property, plant and equipment is determined as the fair value less costs of disposal using a
discounted cash flow method and is assessed at the CGU level. Key input estimates used in the determination of cash
flows from oil and gas reserves include estimates regarding recoverable reserves, forward price estimates of crude oil
and natural gas prices, royalties forward price estimates of production costs and required capital expenditures and
discount rate. The company used a discount rate of 10%. The following table outlines the forecast benchmark
2017 ANNUAL REPORT
Page | 49
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
commodity prices used in the impairment calculation of property, plant and equipment at 30 June 2017. Forecast
benchmark commodity price assumptions tend to be stable because short-term increases or decreases in prices are not
considered indicative of long-term price levels, but are nonetheless subject to change.
WTI Crude Oil ($US/bbl)
Brent Crude Oil ($US/bbl)
Edmonton Iight Crude Oil ($C/bbl)
Alberta Bow river Hardisty Crude Oil ($C/bbl)
Western Canadian Select Crude Oil ($C/bbl)
Alberta Heavy Crude Oil ($C/bbl)
Sask Cromer Medium Crude Oil ($C/bbl)
Edmonton Cond & Natural Gasolines ($/bbl)
Edmonton Ethane ($/bbl)
Edmonton Propane ($/bbl)
Edmonton Butanes ($/bbl)
2017 (6 mths)
50.00
52.00
61.80
48.20
47.60
41.20
57.50
64.80
10.60
19.10
40.70
2018
56.10
57.10
68.30
55.30
54.60
47.50
63.50
71.40
10.60
20.70
45.00
2019
59.80
60.80
70.60
58.60
57.90
50.50
65.70
73.70
11.40
24.40
46.50
2020
63.70
64.80
75.40
62.60
61.80
53.90
70.10
78.60
12.20
26.10
52.50
2021
70.40
71.50
81.00
67.20
66.40
57.90
75.30
84.20
13.60
28.20
59.30
2022
74.50
75.60
85.90
71.30
70.40
61.40
79.90
89.20
14.80
30.10
62.90
2023
78.80
79.90
88.20
73.20
72.30
63.10
82.00
91.60
15.00
30.80
64.60
2024
80.40
81.50
90.00
74.70
73.80
64.40
83.70
93.40
15.20
31.40
65.90
2025
82.00
83.20
91.80
76.20
75.30
65.60
85.40
95.30
15.60
32.10
67.30
2026
83.70
84.90
93.70
77.80
76.80
67.00
87.10
97.30
16.00
32.80
68.60
2027
85.30
86.50
95.50
79.30
78.30
68.30
88.80
99.20
16.20
33.40
70.00
2028
87.00
88.20
97.40
80.80
79.90
69.60
90.60
101.10
16.60
34.10
71.40
The impairment test of property, plant and equipment at 30 June 2017 concluded that the estimated recoverable
amount was lower than the carrying amount of the CGUs. As such, property, plant and equipment impairment existed.
Carrying Value at 30 June 2017 (AUD equiv)
Less: Impairment (AUD equiv)
Recoverable amount at 30 June 2017 (AUD equiv)
Mannville
6,468,716
(2,680,740)
3,787,976
Thornbury/Portage
2,183,927
(794,597)
1,389,330
The fair value less costs of disposal values used to determine the recoverable amounts of the impaired property, plant
and equipment assets are categorized as Level 3 on the fair value hierarchy as the key assumptions are not based on
observable market data.
The impairment tests completed during the year ended 30 June 2017 are sensitive to changes in any of the key
judgements such as a revision in reserves, a change in forecast benchmark commodity prices, changes in expected
royalties, change in operating costs, which could increase or decrease the recoverable amount of the assets and result
in additional impairment expense or recovery of the impairment expense.
23 Exploration and evaluation expenditure
Exploration and evaluation assets
Movement in exploration and evaluation expenditure
Opening Balance
Acquisition through business combination
Additions - Warro Joint Venture
Demerger of Woma Energy Ltd
Expenditure incurred during the period
Depreciation/amortisation for exploration assets
Impairment for exploration and evaluation assets
Foreign currency movement
21
30-Jun-17
AUD
30-Jun-16
AUD
2,077,749
48,012,854
48,012,854
1,900,117
665,660
-
177,632
(7,830)
(48,670,684)
-
2,077,749
57,269,040
-
-
(6,044,880)
753,324
(15,660)
(3,938,165)
(10,805)
48,012,854
The recoverability of the carrying amounts of exploration and evaluation assets is dependent on the successful
development and commercial exploitation or sale of the respective areas of interest.
Where activities in the area of interest have, at the reporting date, reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves the exploration and evaluation assets
are assessed for impairment. Impairment will occur if sufficient data exists to determine technical feasibility and
commercial viability and the facts and circumstances suggest that the carrying amount exceeds the recoverable amount.
Warro Joint Venture
During the year ended 30 June 2017 the 2017 Work Programme and Budget has been approved by Alcoa of Australia as
part of the farmin project. Suspension of Warro 4, 5 and 6 brings the current drilling and testing activities to a close.
The coming 12 months will see the data gathered from the 2015/16 drilling and testing campaign undergo futher
analysis to gain greater understanding of the complex nature of the Warro reservoir and to identify ways to increase
gas production while keeping water production to manageable levels. As part of this program sand(s) that are likely to
produce commercial flow rates from alternative drilling techniques will be identified. If the technical review supports
the drilling of new wells, the JV will move forward to determine the most appropriate way to execute the program.
2017 ANNUAL REPORT
Page | 50
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
Based on presently available information the Warro wells as currently drilled are not commercially feasible and
additional investment will be required to move to the next phase.
It is noted that subsequent to the end of the financial year the WA Government has announced a moratorium on
hydraulic fracturing until an independent scientific inquiry is held.
In determining our impairment position and the appropriateness of continuing to carry forward costs in relation to the
Warro Project consideration has been given to the above, current market conditions for junior mining exploration
companies, the Company’s market capitalisation along with the announcement made by the Company’s JV partner,
Alcoa Corporation in early January 2017 that it had recorded an impairment charge against the carrying value of the
Warro project recorded in Alcoa’s accounts.
As a result of this review of the Warro project, it is considered prudent that the Company make an impairment charge
of $48,670,684 in the current period.
24 Assets classified as available-for-sale
Available-for-sale financial assets:
Listed equity securities
30-Jun-17
AUD
30-Jun-16
AUD
400,000
400,000
-
-
The the listed equity securities are denominated in $AUD. The listed equity securities consist of 100,000,000 Norwest
Energy Limited shares and are publicly traded in Australia.
25 Trade and other payables
Current:
Trade creditors
Other payables
Total trade and other payables
30-Jun-17
AUD
30-Jun-16
AUD
93,136
558,647
651,783
126,827
427,209
554,036
All amounts are short-term. The carrying value of trade payables and other payables are considered to be a reasonable
approximation of fair value.
26 Provisions
Current Provisions:
Annual leave
Long service leave
Non-Current Provisions:
Annual leave
Long service leave
30-Jun-17
AUD
30-Jun-16
AUD
44,856
20,624
65,480
24,114
13,018
37,132
102,612
49,730
62,382
112,112
31,010
8,934
39,944
152,056
2017 ANNUAL REPORT
Page | 51
27 Decommissioning liabilities
Balance at the beginning of the year
Liabilities acquired
Change in discount rate of liabilities acquired
Balance at th end of the year
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
30-Jun-17
AUD
30-Jun-16
AUD
-
2,224,972
2,982,896
5,207,868
-
-
-
-
The Company’s decommissioning obligations result from its ownership interest in oil and natural gas well sites and
facilities. The total decommissioning obligation is estimated based on the estimated costs to reclaim and abandon these
wells and facilities and the estimated timing of costs to be incurred in future years. The Company has estimated the net
present value of the decommissioning obligations to be $5,207,868 as at 30 June 2017 based on an undiscounted total
future liability of $6,628,717. Subsequent to the initial measurement, the obligation is adjusted at the end of each
period to reflect the passage of time and changes in the estimated future cash flows underlying the obligation. The
increase in the provision due to the passage of time is recognized as a finance cost whereas increases/decreases due to
changes in the estimated future cash flows are capitalized. Actual costs incurred upon settlement of the
decommissioning liabilities are charged against the provision to the extent the provision had been established. The
weighted average time in which these payments are expected to be made is approximately 10 years. The discount
factor, being the risk free interest rate of 2.0% and the inflation rate is 2.0% per annum. The discount factor, for the
liabilities acquired at 23 May 2017, was the credit adjusted interest rate of 10.0%.
28 Deferred tax liabilities
Deferred tax liability comprises temporary
differences attributable to:
Amounts recognised in profit and loss:
Capitalised exploration
Deferred tax liability
Movements:
Opening balance
Credited to income statement
Foreign currency movement
Closing balance
30-Jun-17
AUD
30-Jun-16
AUD
-
-
-
-
-
-
-
-
-
-
220,806
(220,806)
-
-
2017 ANNUAL REPORT
Page | 52
29 Issued capital
Ordinary Shares
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
30-Jun-17
AUD
52,646,771
30-Jun-16
AUD
52,646,771
The Company does not have authorised capital or par value in respect of its issued shares. The holders of ordinary
shares are entitled to one vote per share at meetings of the Company.
Reconciliation of movement in issued capital
For the year ended 30 June 2017
Ordinary shares
Opening balance
Closing balance
Less share issue costs:
Opening balance
Share issue costs at the end of the year
For the year ended 30 June 2016
Ordinary shares
Opening balance
New share issue
Exercise of options
Demerger of Woma Energy Ltd
Closing balance
Less share issue costs:
Opening balance
Share issue costs at the end of the year
30 Reserves
Share based payments reserve
Available for sale reserve
Foreign currency translation reserve
Balance at 1 July 2016
Exchange differences on translating foreign operations
Revaluation of marketable securities
Share options vested
Balance at 30 June 2016
Share based payments reserve
Number of shares
Issue price
835,264,337
835,264,337
Issue price
Number of shares
806,819,893
444,444
28,000,000
835,264,337
AUD
53,757,488
53,757,488
(1,110,717)
(1,110,717)
52,646,771
AUD
68,063,521
20,000
196,000
(14,522,033)
53,757,488
(1,110,717)
(1,110,717)
52,646,771
30-Jun-17
AUD
30-Jun-16
AUD
96,822
200,000
1,333,133
1,629,955
67,367
-
1,381,617
1,448,984
Foreign currency translation
reserve
AUD
Share based payments
reserve
AUD
Available for sale
reserve
AUD
1,381,617
(48,484)
-
1,333,133
67,367
-
29,455
96,822
-
-
200,000
-
200,000
The reserve represents the value of options issued under the compensation arrangement that the consolidated entity
is required to include in the consolidated financial statements.
This reserve will be reversed against share capital when the underlying options are exercised by the employee or
consultant or expire. No gain or loss is recognised in the profit or loss on the purchase, sale, issue or cancellation of the
consolidated entity’s own equity instruments.
2017 ANNUAL REPORT
Page | 53
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
Foreign currency translation reserve
The translation reserve comprises all foreign exchange differences arising from the translation of the financial
statements of foreign operations where their functional currency is different to the presentation currency of the
reporting entity.
31 Non-Controlling Interest
Contributed Equity
Opening share of loss attributed to non-controlling interest
Recognition of change in non-controlling interest of Carnaby Energy Ltd
Accrued interest on shareholder loans
Current share of profit attributed to non-controlling interest
30-Jun-17
AUD
30-Jun-16
AUD
5,509,972
(1,552,527)
3,957,445
(3,947,583)
-
(9,862)
-
5,509,972
(2,803,387)
2,706,585
-
468,958
781,902
3,957,445
The non-controlling interest had a 33.7% (2016: 33.7%) equity holding in Carnaby Energy Ltd. The shares held by
Whitebark Energy Limited in Carnaby Energy Ltd were disposed of on the 26th June 2017.
No dividends were paid to the NCI during the years 2017 and 2016.
Summarised financial information for Carnaby Energy Ltd, before intragroup eliminations, is set out below:
30-Jun-17
AUD
30-Jun-16
AUD
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Equity attributable to owners of the Parent
Non-controlling interest
Revenue
Profit for the year attributable to owners of the Parent
Profit for the year attributable to NCI
Profit for the year
Other comprehensive income for the year (all attributable to
owners of the parent)
Total comprehensive income for the year attributable to
owners of the Parent
Total comprehensive income for the year attributable to NCI
Total comprehensive income for the year
The summarised cash flow amounts for Carnaby Energy Limited are as follows:
Net cash flows from operating activities
Net cash flows from investing activities
Net cash flows from financing activities
Net cash flows
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
170,841
-
170,841
(89,024)
(2,351,577)
(2,440,601)
1,504,851
764,909
34,790
1,538,283
781,902
2,320,185
-
1,538,283
781,902
2,320,185
(81,799)
-
-
(81,799)
2017 ANNUAL REPORT
Page | 54
32 Reconciliation of cash flow from operating activities
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
Cash flows used in operating activities
Profit/(loss) for the period
Adjustments for:
Depreciation, depletion and amortisation expense
Loss on disposal of available for sale financial assets
Loss on disposal of assets
Gain on discount purchase
Profit from discontinued operations (refer note 31)
Impairment expense
Bad debt expense
Cash disposed of on loss of control of subsidiary
Foreign exchange gain
Equity settled share-based payment expenses
Operating profit before changes in working capital and provisions
Decrease in other receivables and prepayments
Decrease in trade and other payables
Net cash provided/(used in) operating activities
33 Related Party Transactions
30-Jun-17
AUD
30-Jun-16
AUD
(40,074,224)
3,332,981
24,917
13,242
31,223
(1,289,406)
(3,947,585)
52,146,021
23,943
(125,538)
(38,047)
29,455
6,794,001
(289,569)
97,746
6,602,178
31,521
546,389
20,019
-
(8,730,301)
3,938,165
67,048
-
(94,345)
67,367
(821,156)
756,716
(494,781)
(559,221)
Detailed disclosures relating to Directors and Key Management Personnel are set out in the Directors’ Report under the
section entitled Remuneration Report.
The totals of remunerations paid to Key Management Personnel of the Company and the consolidated entity during the
year are as follows:
Short-term employee benefits
Post-employment benefits
30-Jun-17
AUD
(1,017,461)
(15,000)
(1,032,461)
30-Jun-16
AUD
(1,117,991)
(43,112)
(1,161,103)
The aggregate amounts recognised during the year relating to directors and their related parties were as follows:
TB & S Consulting Pty Ltd (i)
Mtani Pty Ltd (ii)
Transactions value year end
30-Jun-16
30-Jun-17
Balance outstanding as at
30-Jun-17
30-Jun-16
288,620
373,025
661,645
394,226
97,800
492,026
125,867
66,187
192,054
104,268
25,200
129,468
i.
TB & S Consulting Pty Ltd is a Company associated with Mr Stephen Keenihan. The charges from TB & S Consulting
were for consultancy fees and reimbursement for travel costs incurred in the ordinary course of business.
ii. Mtani Pty Ltd is a Company associated with Mr David Messina. The charges from Mtani Pty Ltd were for directors’
fees and consultancy fees.
The terms and conditions of the transactions were no more favourable than those available, or which might be
reasonably available, on similar transactions to non-director related entities on an arms-length basis.
2017 ANNUAL REPORT
Page | 55
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
34 Share –based payments
Options are granted and approved by the directors and shareholders.
Options are granted to directors, employees, consultants and others. Entitlements to the options are exercisable as
soon as they have vested and performance conditions have been met. There are no cash settlement alternatives.
Options granted carry no dividend or voting rights.
The following table illustrates the number (No.) and weighted average exercise prices (WAEP) of any movements in
share options issued during the year:
Outstanding at the beginning of the year
Granted during the year
Forfeited during the year
Exercised during the year
Consolidation (5:1) during the year
Expired during the year
No. 2017
WAEP 2017
No. 2016
WAEP 2016
1,675,000
11,000,000
-
-
-
-
0.06
0.015
28,000,000
1,675,000
-
-
28,000,000
-
-
0.005
12,675,000
0.021
1,675,000
0.005
The number of options vested and exercisable as at 30 June 2017 was 5,341,668 (2016: 1,675,000).
The outstanding balance of options over ordinary shares as at 30 June 2017 represented by:
Grant Date
17-Nov-15
28-Apr-17
Exercisable
Expiry date
Exercise price
Number of
options
Value of share
based
payments
17 November 2015
28 April 2017 to 1 April 2021
10-Jul-18
1-Apr-21
$0.060 1,675,000 67,367
70,191
$0.015
11,000,000
The outstanding balance of options over ordinary shares as at 30 June 2016 represented by:
Grant date
17-Nov-15
Exercisable
17 November 2015
Expiry date
10-Jul-18
Exercise price
$0.060
Number of
options
Value of share
based
payments
1,675,000 67,367
The weighted average remaining contractual life for the share options outstanding as at 30 June 2017 is two years. The
exercise price for options outstanding at the end of the year is 1,675,000 at A$0.060 (2016: A$0.06) and 11,000,000 at
A$0.015.
Fair value of options granted
Options granted during the year ended 30 June 2017; the fair value of options granted during the financial year was
$0.006 with a weighted average of $0.006. The fair value at grant date is determined using the binomial method of
valuing options that takes into account the exercise price, the term of the option, the impact of dilution, the share price
at grant date and expected volatility of the underlying share, the expected dividend yield and the risk free interest rate
for the term of the option.
The following table lists the inputs to the model used for valuation of options:
Dividend yield (%)
Expected volatility (%)
Risk-free interest rate (%)
Expected life of option (year)
Option exercise price ($)
Weighted average share price at grant date ($)
1.5c Options
Nil
119%
2.00%
3.93
$0.015
$0.009
The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may
occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which
may also not necessarily be the actual outcome. No other features of options granted were incorporated into the
measurement of fair value.
The expense recognised in profit or loss in relation to share-based payments is $29,455.
2017 ANNUAL REPORT
Page | 56
35 Parent Company disclosures
Current Assets
Non-Current Assets
Total Assets
Current Liabilities
Non-Current Liabilities
Total Liabilities
Net Assets
Contributed Equity
Share based payments reserve
Available for sale reserve
Foreign translation reserve
Accumulated losses
Total Equity
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
30-Jun-17
AUD
30-Jun-16
AUD
4,563,918
425,000
4,988,918
335,063
-
335,063
4,653,855
9,539,175
96,822
200,000
1,885,725
(7,067,867)
4,653,855
1,031,135
1,892
1,033,027
416,968
-
416,968
616,059
9,539,175
67,367
-
1,885,725
(10,876,208)
616,059
The Company has no contingent liabilities or commitments and no guarantees due to subsidiaries at 30 June 2017.
36 Financial instruments
Financial Risk Management
Overview
The consolidated entity has exposure to the following risks from its use of financial instruments:
credit risk;
liquidity risk; and
•
•
• market risk.
The consolidated entity’s management of financial risk is aimed at ensuring net cash flows are sufficient to:
• Meet all its financial commitments; and
• Maintain the capacity to fund the consolidated entity’s operating activities.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework.
Management monitors and manages the financial risks relating to the operations of the consolidated entity through
regular reviews of the risks.
Market, liquidity and credit risk (including foreign exchange, commodity price and interest rate risk) arise in the normal
course of business. These risks are managed under Board approved directives which underpin treasury practices and
processes.
This note presents information about the Company’s and consolidated entity’s exposure to each of the above risks, their
objectives, policies and processes for measuring and managing risk, and the management of capital.
Credit risk
Credit risk is the risk of financial loss to the consolidated entity if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the consolidated entity’s receivables from customers.
Trade and other receivables
The consolidated entity operates in the mining exploration and production sector. As at 30 June 2017 there were no
significant concentrations of credit risk on the statement of financial position.
2017 ANNUAL REPORT
Page | 57
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
Impairment losses
None of the Company’s other receivables are past due (2016: nil). As at 30 June 2017 there is no allowance for
impairment in respect to other receivables for the consolidated entity (2016: nil).
Exposure to credit risk
The carrying amount of the consolidated entity’s financial assets represents the maximum credit exposure. The
consolidated entity’s maximum exposure to credit risk at the reporting date was:
Financial Instruments
Other receivables
Cash and cash equivalents
30-Jun-2017
Financial assets measured at fair value
Assets held for sale
Financial assets not measured at fair value
Trade and other receivables
Cash and cash equivalents
30-Jun-2016
Financial assets measured at fair value
Financial assets not measured at fair value
Trade and other receivables
Cash and cash equivalents
Liquidity risk
30-Jun-17
AUD
30-Jun-16
AUD
280,574
4,856,883
5,137,457
Carrying Amount
143,562
3,321,814
3,465,376
Non-current assets
Trade and other
receivables
0
Other investments
including
derivatives
0
-
-
-
-
-
-
-
-
Current assets
Total
Level 1
Trade and other
receivables
0
Other investments
including derivatives
0
Cash and cash
equivalents
0
-
400,000
280,574
-
280,574
-
-
400,000
-
-
4,856,883
4,856,883
0
-
280,574
4,856,883
5,137,457
0
400,000
-
-
400,000
Non-current assets
Trade and other
receivables
Other investments
including
derivatives
Carrying Amount
Current assets
Total
Level 1
Trade and other
receivables
Other investments
including derivatives
Cash and cash
equivalents
-
-
-
-
-
-
143,562
-
143,562
-
-
-
-
3,321,814
3,321,814
143,562
3,321,814
3,465,376
-
-
-
Liquidity risk is the risk that the consolidated entity will not be able to meet its financial obligations as they fall due. The
consolidated entity’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the consolidated entity’s reputation.
The consolidated entity manages liquidity risks by maintaining adequate reserves by continuously monitoring forecast
and actual cash flows.
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding
the impact of netting agreements:
30-Jun-2017
Financial liabilities measured at fair value
Financial liabilities not measured at fair value
Trade and other payables
30-Jun-2016
Financial assets measured at fair value
Financial assets not measured at fair value
Finance lease liabilities
Trade and other payables
Non-current liabilities
Trade and other
payables
Loans and
borrowings
Carrying Amount
Bank overdraft
Current liabilities
Trade and other
payables
Loans and
borrowings
5,245,000
5,245,000
Non-current liabilities
Trade and other
payables
Loans and
borrowings
12,188
39,944
52,132
-
-
-
-
-
-
-
717,263
717,263
Carrying Amount
Bank overdraft
Current liabilities
Trade and other
payables
Loans and
borrowings
-
-
-
6,359
666,148
672,507
Total
Level 1
5,962,263
5,962,263
Total
Level 1
18,547
706,092
724,639
-
-
-
-
-
-
-
-
2017 ANNUAL REPORT
Page | 58
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will
affect the consolidated entity’s income or the value of its holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
Commodity price risk
The consolidated entity is exposed to commodity price risk through its revenue from the sale of hydrocarbons – gas,
crude oil, condensate and LPG. – which are priced against world benchmark commodity prices.
Currency risk
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to foreign
currency risk through foreign exchange rate fluctuations.
Interest rate risk
At the reporting date the interest rate profile of the Company’s and the consolidated entity’s interest-bearing financial
instruments was:
Variable rate instruments
Financial assets
2017
2016
4,856,883
4,856,883
3,321,814
3,321,814
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and profit
or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates,
remain constant. The analysis is performed on the same basis for 2016.
30 June 2017
Variable rate instruments
Cash flow sensitivity
30 June 2016
Variable rate instruments
Fair values
100bp increase
AUD
100bp decrease
AUD
100bp increase
AUD
100bp decrease
AUD
48,569
48,569
33,218
33,218
(48,569)
(48,569)
(33,218)
(33,218)
48,569
48,569
33,218
33,218
(48,569)
(48,569)
(33,218)
(33,218)
There is little or no difference between carrying amounts and fair values of financial assets and liabilities.
Capital Management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and
to sustain future development of the business. The Board of Directors monitors the return on capital, which the
consolidated entity defines as net operating income divided by total shareholders’ equity.
Equity attributable to shareholders of the Company
Equity
Total assets
Equity ratio
Average equity
Net Profit
Return on Equity in %
2017
2016
52,646,771
52,646,771
13,081,898
25%
29,040,053
(40,074,224)
-138.00%
52,646,771
52,646,771
51,666,563
98%
56,032,025
3,332,981
5.95%
There were no changes in the consolidated entity’s approach to capital management during the year. As at 30 June
2017, neither the Company nor its subsidiaries are subject to externally imposed capital requirements.
2017 ANNUAL REPORT
Page | 59
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
37 Consolidated entities
(a) Parent entity
The parent entity of the group is Whitebark Energy Limited, incorporated in Australia.
Registered office:
Level 2, 6 Thelma Street
West Perth WA 6005
(b) Subsidiaries
The consolidated financial statements incorporate assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described under 1(a).
Name of Entity
Subsidiaries of Whitebark Energy Ltd
Tejon Energy Pty Ltd
Tejon Energy Inc (100% subsidiary of Tejon Energy Pt
Latent Petroleum Pty Ltd
Carnaby Energy Ltd
Calor Energy Pty Ltd
Kubla Oil Pty Ltd
Salt Bush Energy Ltd
Country of incorporation
2017 Equity holding %
2016 Equity
holding %
Australia
USA
Australia
Canada
Australia
Australia
Canada
100
100
100
0
100
100
100
100
100
100
66.3
0
0
0
No dividends were paid to the NCI during the years 2016 and 2017.
38 Contingent Liabilities
There are no contingent liabilities at 30 June 2017.
39 Commitments
The Group leases a photocopier/printer under operating leases and is sub-lessee to the premises situated at Level 2, 6
Thelma Street West Perth. The future minimum lease payments are as follows;
Within 1 year
1 to 5 years
After 5 years
Total
30-Jun-17
30-Jun-16
59,583
6,359
5,829
12,188
-
-
65,412
18,547
Minimum Lease Payments Due
Lease expense during the period amounted to $98,450 (2016: $253,200) representing the minimum lease payments.
The rental agreement for the photocopier/printer is for a term of 36 months and will expire in June 2019.
The Group has a commitment to an additional spend of approximately $1,200,000 to complete the Xanadu-1 farm-in
and $800,000 for agreed capital and/or development projects in Alberta, Canada.
40 Subsequent events
Whitebark Energy Limited (WBE) changed its name from Transerv Energy Limited (TSV) on the 3rd July 2017 following
approval by its shareholders at a General Meeting held on that date.
100,000,000 Related Party Options were issued after obtaining shareholder approval at the General meeting. The
options are exercisable by payment of 1.5 cents each on or before 31 May 2021.
On the 5th of September the Western Australian Government announced a moratorium on all hydraulic fracturing until
an independent scientific inquiry is held. WBE is confident the scientific inquiry will come to the same conclusion as
numerous enquiries completed to date but is concerned that this inquiry will delay important energy projects in the
State and result in unnecessary delays and added costs for the industry.
Canada
On 9 August 2017 Whitebark Energy announced the acquisition of two further oil wells through its joint venture with
Point Loma. The acquired section 4-56-7W5 is immediately adjacent to and enlarges the JV’s producing Paddle River
Ostracod A Pool in central Alberta, Canada and is connected to existing facilities.
2017 ANNUAL REPORT
Page | 60
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2017
Xanadu
The Xanadu-1 conventional oil exploration well commenced drilling operations on 4 September 2017. Xanadu-1 well
was drilled to a planned maximum total depth of 1863 MDRT from onshore to offshore using a deviated well profile,
with the target located below shallow water approximately 1300m from the coastline. Logs run over a 330m section of
the Xanadu-1 well confirm reservoir quality sand intervals throughout the Irwin River Coal Measures (IRCM) with
porosities ranging 15% to 16%. Oil was obtained via a testing tool from 4.6m of net pay in the top ‘A’ sand, one of three
discrete sand intervals at top of the IRCM. Analysis of the oil samples is now taking place.
2017 ANNUAL REPORT
Page | 61
WHITEBARK ENERGY LTD
Directors’ Declaration
for the year ended 30 June 2017
1.
In the opinion of the Directors of Whitebark Energy Ltd (“the Company”):
a. The financial statements and notes set out on pages 27 to 61, are in accordance with the Corporations Act
2001, including:
iii. Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2017 and of its performance
for the financial year ended on that date; and
iv. Complying with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements;
b.
c.
the financial report also complies with International Financial Reporting standards as disclosed in note 2(a);
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
2. The directors have been given the declarations required by Section 295A of the Corporations Act 2001 by the chief
executive officer and chief financial officer for the financial year ended 30 June 2017.
Dated at Perth this 29th day of September 2017.
Signed in accordance with a resolution of the Directors.
On behalf of the Directors
David Messina
Managing Director
2017 ANNUAL REPORT
Page | 62
EXCHANGE LISTING
Whitebark Energy Ltd shares are listed on the Australian Securities Exchange. The Company’s ASX code is WBE.
WHITEBARK ENERGY LTD
Shareholder Information
SUBSTANTIAL SHAREHOLDERS (HOLDING NOT LESS THAN 5%)
As at 25 September 2017
Rank
1.
2.
3.
4.
Name
MR STEPHEN LESLIE KEENIHAN + MRS SHERIDAN JAY KEENIHAN
MR CHARLES WAITE MORGAN
MR RUSSELL STEPHENSON + MRS PAMELA STEPHENSON
VILLEMARETTE NOMINEES PTY LTD
Units
72,947,334
% of Units
8.73
62,100,294
50,161,231
7.43
6.01
46,856,085
5.61
CLASS OF SHARES AND VOTING RIGHTS
At 25 September 2017 there were 1,859 holders of 835,264,337 ordinary fully paid shares of the Company. The voting
rights attaching to the ordinary shares are in accordance with the Company’s Constitution being that:
a. each Shareholder entitled to vote may vote in person or by proxy, attorney or Representative;
b. on a show of hands, every person present who is a Shareholder or a proxy, attorney or Representative of a
shareholder has one vote; and
c. on a poll, every person present who is a shareholder or a proxy, attorney or Representative of a shareholder
shall, in respect of each fully paid Share held by him, or in respect of which he is appointed a proxy, attorney
or Representative, have one vote for the Share, but in respect of partly paid Shares, shall, have such number
of votes as bears the proportion which the paid amount (not credited) is of the total amounts paid and payable
(excluding amounts credited).
DISTRIBUTION OF SHAREHOLDERS
Spread of Holdings
Ordinary Shares
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - 9,999,999,999
Total
9,477
146,495
635,091
45,578,991
788,894,283
835,264,337
The number of shareholders holding less than a marketable parcel is 600.
2017 ANNUAL REPORT
Page | 63
WHITEBARK ENERGY LTD
Shareholder Information
UNLISTED OPTIONS
Securities
Options exercisable at 6 cents on
or before 10 July 2018
Options exercisable at 1.5 cents
on or before 1 April 2021
Options exercisable at 1.5 cents
on or before 31 May 2021
Number of Securities
on issue
1,675,000
Number
Holders
2
of
11,000,000
100,000,000
4
3
ESCROWED SECURITIES
The Company does not have any securities on issue that are subject to escrow restrictions.
LISTING OF 20 LARGEST SHAREHOLDERS AS AT 25 SEPTEMBER 2017
Rank Name
1.
MR STEPHEN LESLIE KEENIHAN + MRS SHERIDAN JAY KEENIHAN
Units
72,947,334
% of Units
8.73
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
MR CHARLES WAITE MORGAN
62,100,294
7.43
RUSSELL STEPHENSON + PAMELA STEPHENSON
VILLEMARETTE NOMINEES PTY LTD
50,161,231
46,856,085
ARGONAUT INVESTMENTS PTY LTD 18,932,000
ORABANT PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
INVESTMENT FUNDS LIMITED
ONE MANAGED
INVESTING ABSOLUT R>
MTANI PTY LTD
COSMOS NOMINEES PTY LTD
LEEJAMES NOMINEES PTY LTD
15,000,000
14,901,425
13,910,001
11,529,713
10,362,000
10,000,000
10,000,000
BT PORTFOLIO SERVICES LIMITED
10,000,000
ONE MANAGED INVESTMENT FUNDS LIMITED
8,900,000
MORITZ INVESTMENTS PTY LTD
DAVKAZ INVESTMENTS PTY LIMITED
LONG JPJ PTY LTD
MR DONATO IACOVANTUONO
HABIBIE PTY LTD
MR DAVID JOHN GRRECH
7,500,000
6,100,000
6,050,880
5,238,373
5,200,000
4,798,766
6.01
5.61
2.27
1.80
1.78
1.67
1.38
1.24
1.20
1.20
1.20
1.07
0.90
0.73
0.72
0.63
0.62
0.57
2017 ANNUAL REPORT
Page | 64
WHITEBARK ENERGY LTD
Permits
PERMITS
AUSTRALIAN LAND INTERESTS
Lease or Project
Legal Description
Interest
Location
Rights
Warro JV
Warro JV
Warro JV
Xanadu JV
EP321
RL6
RL7
TP15
57%
57%
57%
15%
Western Australia 100%
Western Australia 100%
Western Australia 100%
Western Australia 100%
CANADIAN LICENSES
CANADIAN LICENSES
Crown #
Rights Held
Active WI
AOI
Crown #
Rights Held
Active WI
AOI
Other
0485100560
Other
0485100560
Other
0486010407
Other
0486010407
Other
3932
Other
29953
Other
0417020121
Other
0417020122
Other
0514080070
Other
0516050022
Wildwood
21631
Wildwood
0596050319
Wildwood
0512100181
Wildwood
5414070308
Leaman
0597100807
Leaman
0597070666
top
base
top
base
top
base
top
base
from
to
from
to
from
to
from
to
PNG
SURFACE
MANNVILLE
top
from
PNG
OSTRACOD ZONE to
base OSTRACOD ZONE
top
from
PNG
SURFACE
base
to
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG from top VIKING
to base MANNVILLE
Excluding WELLBORE
PNG from top VIKING
to base MANNVILLE
Excluding WELLBORE
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
NORDEGG
PNG
SURFACE
MANNVILLE
Excluding PNG from
top NOTIKEN to base
NOTIKEN
PNG from base BELLY
RIVER
base
to
BASEMENT
PNG
SURFACE
BASEMENT
PNG
base
from
EDMONTON GRP to
base VIKING FM
PNG
SURFACE
PEKISKO
from
to
from
to
from
to
from
to
from
to
from
to
top
base
top
base
top
base
top
base
top
base
top
base
1.31
3
0.75
0.75
20
20
20
20
20
20
20
12
20
20
5
10
Leaman
0594120281
Leaman
0594120282
Leaman
38482
Leaman
38482
Leaman
38482
Leaman
38001
Leaman
38001
Leaman
1184
Leaman
1184
Leaman
1184
Leaman
0589050108
Leaman
5497020047
Leaman
38479
Leaman
38479
Leaman
0590040492
Leaman
18323
from
top
base
top
base
from
to
from
to
from
to
top
to base
PNG
WELLBORE
WELLBORE
top
from
PNG
JURASSIC SYSTEM to
base JURASSIC SYSTEM
top
from
CBM
SURFACE
base
to
BASEMENT
PNG
SURFACE
PEKISKO FM
top
PNG
base
SURFACE
PEKISKO
FM
Excluding CBM from
top SURFACE to base
BASEMENT
NG fr top PEKISKO FM
to base PEKISKO FM
PNG
SURFACE
NORDEGG
PNG fr top SURFACE to
base NORDEGG MBR
NG from top JURASSIC
SYSTEM
base
JURASSIC SYSTEM
NG from top JURASSIC
base
SYSTEM
JURASSIC SYSTEM
NG from top JURASSIC
SYSTEM
base
JURASSIC SYSTEM
PNG
SURFACE
MANNVILLE
CBM
SURFACE
MANNVILLE
CBM
SURFACE
PEKISKO
NG
NORDEGG MBR
base NORDEGG MBR
PNG
SURFACE
PEKISKO FM
PNG fr top SURFACE to
base NORDEGG MBR
PNG fr top SURFACE to
base NORDEGG MBR
top
base
FM
top
to
from
to
from
to
from
to
from
to
top
base
top
base
top
base
from
to
to
to
4
4
10
4
1.2
10
10
4
10
10
1.2
10
10
4
10
10
2017 ANNUAL REPORT
Page | 65
CANADIAN LICENSES
CANADIAN LICENSES
AOI
Crown #
Rights Held
Active WI
AOI
Crown #
Rights Held
Active WI
WHITEBARK ENERGY LTD
Permits
Leaman
11916
Leaman
38480
Leaman
38507
Leaman
38507
Leaman
1183
Leaman
1183
Leaman
1183
Leaman
1183
Leaman
1183
Leaman
1183
Leaman
0578090138
Leaman
0578090138
Leaman
36939
Leaman
111575
Leaman
38481
to
to
base
from
from
top
base
top
base
from
to
from
to
PNG
SURFACE
PEKISKO FM
base
from
PNG
MANNVILLE to base
PEKISKO FMExcluding
top
NG
from
to
NORDEGG MBR
NORDEGG
base
MBRExcluding
CBM
from top SURFACE to
base BASEMENT
PNG
SURFACE
PEKISKO FM
PNG
EDMONTON
SANDSTONE to base
NORDEGG MBR
NG from top JURASSIC
SYSTEM
base
JURASSIC SYSTEM
NG from top JURASSIC
to base JURASSIC
NG from top JURASSIC
SYSTEM
base
JURASSIC SYSTEM
NG from top PEKISKO
FM to base PEKISKO
FMNG
top
JURASSIC SYSTEM to
base JURASSIC SYSTEM
NG from top JURASSIC
base
SYSTEM
JURASSIC SYSTEMNG
from top PEKISKO FM
PEKISKO
to
FMExcluding
CBM
from top SURFACE to
base
BASEMENTExcluding
NG
from
NORDEGG MBR
base NORDEGG MBR
NG from top JURASSIC
SYSTEM
base
JURASSIC SYSTEM
PNG
SURFACE
NORDEGG
MBRExcluding
PNG
from top MANNVILLE
to base MANNVILLE
PNG
SURFACE
NORDEGG
MBRExcluding
PNG
from top MANNVILLE
to base MANNVILLE
from
PNG
SURFACE
to
NORDEGG MBR
PNG
SURFACE
PEKISKO FM
from
PNG
SURFACE
to
NORDEGG MBR
from
to
from
to
from
to
top
base
top
base
top
base
top
base
top
base
top
to
base
to
to
10
4.
10
10
10
10
4
5
4
10
10
10
10
10
10
Leaman
27886
Leaman
0597090712
Leaman
111574
Leaman
111573
Leaman
111573
Leaman
111573
Other
0416050054
Other
0486030221
Other
040912A258
Other
0497050619
Other
0510060146
Other
5411110211
Wildwood
22289A
Other
5414070312
Thornbury
0590100432
Thornbury
29993
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
from
to
from
to
from
to
from
to
from
to
from
to
from
PNG
SURFACE
to
NORDEGG MBR
PNG
SURFACE
MANNVILLE
PNG
SURFACE
PEKISKO EXCL. CBM
PNG
SURFACE
NORDEGG
MBRExcluding
PNG
from top MANNVILLE
to base MANNVILLE
from
PNG
SURFACE
to
NORDEGG MBR
PNG
SURFACE
PEKISKO FM
PNG
SURFACE
BASEMENT
NG from top VIKING to
base VIKINGNG from
top BASAL COLORADO
to
BASAL
from
COLORADONG
top BASAL BLAIRMORE
to
BASAL
base
BLAIRMORE
PNG
SURFACE
MANNVILLE
top
PNG
SURFACE
base
BANFFExcluding NG
BASAL
top
from
COLORADO
to base
BASAL
COLORADOExcluding
NG from top BASAL
BLAIRMORE to base
BASAL
BLAIRMOREExcluding
NG from top VIKING to
base VIKING
top
from
PNG
BLUESKY-BULLHEAD to
base
BLUESKY-
BULLHEAD
PNG
SURFACE
BANFF
PNG
SURFACE
EDMONTON GRP
8-W5M
61-RGE
24,N25,SE25PNG from
top SURFACE to base
BASEMENT
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLEExcluding
from
to
from
to
from
to
from
to
from
to
top
base
top
base
top
base
top
base
top
base
10
6
4
10
10
10
10
9.07500000
00
8.78715600
00
8.78715600
00
20
AFTER-
EARN18
1.774
20
10
20
2017 ANNUAL REPORT
Page | 66
CANADIAN LICENSES
CANADIAN LICENSES
AOI
Crown #
Rights Held
Active WI
AOI
Crown #
Rights Held
Active WI
WHITEBARK ENERGY LTD
Permits
Thornbury
23015A
Thornbury
0595010782
Thornbury
0593030391
Thornbury
0593030387
Thornbury
0593030387
Thornbury
0593050487
Thornbury
0593070520
Thornbury
0593070520
Thornbury
0593050473
Thornbury
0594050514
Thornbury
0595070450
Thornbury
5495100048
Thornbury
5495100049
Thornbury
0506070714
Other
0588100423
Thorsby
0411110070
Thorsby
0412100056
Thorsby
0412100057
Thorsby
0412100058
Thorsby
0412100059
Thorsby
0412100060
from
from
top
to
top
to
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
from
to
from
to
from
to
from
to
from
to
from
to
from
to
PNG
MCMURRAY FM
base MCMURRAY FM
from
PNG
SURFACE
to
MANNVILLE
PNG
MCMURRAY FM
base MCMURRAY FM
from
PNG
SURFACE
to
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLEExcluding
CBM
PNG
SURFACE
MANNVILLEExcluding
CBM
PNG
SURFACE
MANNVILLE
PNG
SURFACE
CARDIUM
PNG
top
from
MANNVILLE to base
MANNVILLE
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
Thorsby
0412100061
3.334
Thorsby
0412100070
20
20
20
20
20
20
20
20
20
20
20
20
20
16
20
20
20
20
20
20
Thorsby
0412100071
Thorsby
0412100072
Thorsby
0412100073
Thorsby
0412100074
Thorsby
0412100094
Thorsby
0412100095
Thorsby
0412100096
Thorsby
0412100097
Thorsby
0412100102
Thorsby
0412100103
Thorsby
0412100104
Thorsby
0494100828
Whitecourt
0578100052
Whitecourt
0582010223
Whitecourt
0582010223
Whitecourt
0585100503
Whitecourt
0596080466
Whitecourt
12670
Whitecourt
POINT LOMA
FEE LANDS
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
50-RGE 3-W5M 17(LSD
top
5-8)PNG
SURFACE
base
BELLY RIVER
PNG
SURFACE
NORDEGG
PNG
SURFACE
NORDEGG
PNG from surface to
base
NORDEGGExcluding
WELLBORE ONLY
PNG
NORDEGG
NORDEGG
58-RGE
9-W5M
NE2258-RGE 9-W5M
top
NW22NG
SURFACE
base
MANNVILLE
PNG from surface to
base
NORDEGGExcluding
WELLBORE ONLY
NG from surface to
base NORDEGG
top
to base
from
to
from
to
from
to
from
to
from
to
from
to
top
base
top
base
top
base
top
base
from
20
20
20
20
20
20
20
20
20
20
20
20
20
20
3.50
20
3.50
10
POOLED
4.8
3.50
POOLED
4.8
2017 ANNUAL REPORT
Page | 67
CANADIAN LICENSES
CANADIAN LICENSES
Crown #
Rights Held
Active WI
AOI
Crown #
Rights Held
Active WI
WHITEBARK ENERGY LTD
Permits
AOI
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
0589060122
0589060123
058407A286
058407A286
35970
0579080256
0598080338
0587090394
26248
0589110368
0581020085
0581020085
018203A006
CONOCO
CANADA EN
0580060165
0182030006
Thornbury
5495100161
Thornbury
5495100161
Thornbury
5495100161
Thornbury
5495080117
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
from
to
from
to
from
to
top
base
FMExcluding
top
from
base
to
from
PNG
SURFACE
to
NORDEGG MBR
PNG
SURFACE
BANFF
CBM
SURFACE
BASEMENT
from
PNG
SURFACE
to
NORDEGG MBR
PNG
from
to
SURFACE
NORDEGG MBR
from
PNG
SURFACE
to
NORDEGG MBR
PNG
SURFACE
NORDEGG
MBRExcluding CBM
PNG
from
to
SURFACE
NORDEGG MBR
PNG
SURFACE
NORDEGG
CBM
MBRExcluding
from top SURFACE to
base BASEMENT
from
PNG
SURFACE
to
NORDEGG MBR
from
PNG
SURFACE
to
NORDEGG MBR
PNG
from
to
SURFACE
NORDEGG MBR
from
PNG
SURFACE
to
NORDEGG MBR
PNG
SURFACE
BANFF FM
from
PNG
SURFACE
to
NORDEGG MBR
PNG
SURFACE
BANFF FM
PNG
SURFACE
BANFF FM
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
from
to
from
to
from
to
from
to
from
to
from
to
from
to
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
20
20
20
Thornbury
5495080116
Thornbury
5495090144
Thornbury
5495090144
Thornbury
5495090144
POOLED 15
Thornbury
5495110058
15
20
20
20
20
20
20
20
20
Thornbury
0595010787
Thornbury
0595010787
Thornbury
39586
Thornbury
39586
Other
0500110822
Other
5408090493
Other
5408090493
Other
0506010361
Other
0591040348
Other
0514110057
POOLED 15
Other
0484090377
20
Other
LEHET ET AL
11.227504
Other
SORENSEN, R
20
20
20
20
Other
Other
Other
BOGGOTT ET
AL
HISER ET AL
HISER ET AL
Other
0481100014
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
from
to
from
to
from
to
from
to
from
to
from
to
from
to
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
80-RGE 16-W4M 3681-
RGE 15-W4M 6PNG
from top SURFACE to
base MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
from
to
SURFACE
GROSMONT FM
from
PNG
SURFACE
to
GROSMONT FM
PNG
SURFACE
VIKING
PNG
base
from
BLUESKY BULLHEAD to
base TRIASSIC SYSTEM
PNG
base
from
BLUESKY BULLHEAD to
top DOIG
PNG
base
from
BLUESKY BULLHEAD to
top DOIG
from
PNG
SURFACE
to
CHARLIE LAKE
from
PNG
SURFACE
to
BLUESKY-BULLHEAD
PNG
SURFACE
CARDIUM
PET
CARDIUM
CARDIUM
PET
CARDIUM
CARDIUM
PET
CARDIUM
CARDIUM
NG from top SURFACE
to base BASEMENT
PET
CARDIUM
CARDIUMExcluding
WELLBORE PROD
PET from top BASAL
QUARTZ to base BASAL
QUARTZPET from top
top
to base
top
to base
top
to base
top
to base
from
to
top
base
top
base
top
base
from
from
from
from
20
20
20
20
20
20
20
1.6
1.6
10
20
10
10
20
20
20
POOLED 5
POOLED 5
POOLED 5
19.5
POOLED 5
7.91
2017 ANNUAL REPORT
Page | 68
CANADIAN LICENSES
CANADIAN LICENSES
AOI
Crown #
Rights Held
Active WI
AOI
Crown #
Rights Held
Active WI
WHITEBARK ENERGY LTD
Permits
Leaman
5417030207
Leaman
0585090110
Leaman
0585080381
Leaman
0585080381
Leaman
0585090107
Leaman
0578120076
Leaman
0578120076
Leaman
31640
Leaman
31640
Leaman
31640
Leaman
31640
Leaman
31640
Leaman
31640
Leaman
31640
Leaman
31640A
Leaman
0578080076
Leaman
37585
Leaman
0578080078
Leaman
0578080077
Leaman
CRESTAR
from
from
from
from
from
to base
from
to
from
to
top
to base
top
to base
top
to base
top
to base
top
to base
10-W5M
top
base
OSTRACOD
OSTRACOD
PNG
top
base
SURFACE
BASEMENTTract 2 57-
RGE
9-W5M
NW16PNG from base
NORDEGG
to base
BASEMENT
PNG
NORDEGG
NORDEGG
PNG from surface to
base NORDEGG
PNG
from
NORDEGG
NORDEGGExcluding
CBM
NORDEGG
NORDEGG
PNG
NORDEGG
NORDEGG
NG from surface to top
NORDEGG
NG
NORDEGG
NORDEGG
57-RGE
26PNG
SURFACE
NORDEGG
PNG
NORDEGG
NORDEGG
57-RGE
SW23PNG
NORDEGG
NORDEGG
PNG
SURFACE
NORDEGG
PNG
NORDEGG
NORDEGG
57-RGE
N24PNG
SURFACE
NORDEGG
PNG
SURFACE
NORDEGG
PNG
SURFACE
NORDEGG
PNG from surface to
base NORDEGG
PNG from surface to
base NORDEGG
PNG from surface to
base NORDEGG
PNG
from
NORDEGG
NORDEGG
PNG from surface to
top
NORDEGGExcluding
10-W5M
from top
to base
10-W5M
top
base
top
to base
top
to base
top
to base
from
to
from
to
from
to
from
to
top
base
top
base
top
base
from
20
Leaman
0578120074
Leaman
057812A073
Leaman
31639
Leaman
0578120073
Leaman
37586
Leaman
37586
Leaman
0579120177
Leaman
0580020159
Leaman
5497040081
Leaman
0585090109
Leaman
0591050578
Leaman
0579120178
Leaman
0591050577
POOLED
16.68205
8
20
20
2.22462
POOLED
2.22462
7.41536
5.9641
Leaman
0590020438
3.76138
9.08204
Leaman
0590020438
Leaman
0594030701
Thornbury
0585050411
5.9641
Thornbury
39567
3.76138
Leaman
0512090287
7.41536
7.41536
7.41536
PREPOOL
7.41538
PREPOOL
7.41538
7.41538
2.82154
Thornbury
0179040029
Thornbury
0179040029
Thornbury
0179040029
Thornbury
0179040029
Other
Other
22178
Other
22178
NG from surface to
base EDMONTON
PNG from surface to
base NORDEGG
PNG to base NORDEGG
PNG from surface to
base NORDEGG
9-W5M
57-RGE
NE7PNG from surface
to base NORDEGG
PNG from surface to
base NORDEGG
PNG from surface to
base NORDEGG
WELLBORE ONLY
top
base
from
to
PNG from surface to
base MANNVILLE
PNG
base
from
MANNVILLE to base
NORDEGG
PNG
SURFACE
NORDEGGExcluding
WELLBORE
PNG
SURFACE
NORDEGG
PNG from surface to
base NORDEGG
PNG to base NORDEGG
from
to
top
base
top
base
from
to
from
to
9-W4M
top
base
PNG from surface to
base NORDEGG
PNG from surface to
base NORDEGG
PNG from surface to
base NRDG
76-RGE
S20PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
BASEMENT
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
from
to
from
to
from
to
from
to
from
to
top
base
top
base
top
base
top
base
top
base
2.59538
7.41538
3.3334
7.41538
4.6352
4.6352
10
20
20
POOLED
17.736844
4
BPEN4.635
2
7.50
10
20
20
1.250
1.0666
20
10
10
10
10
from
to
PNG
SURFACE
MANNVILLE
PNG
SURFACE
from
to
10
0.625
top
base
top
base
018012A014 WELLBORE PROD
5.83332
2017 ANNUAL REPORT
Page | 69
CANADIAN LICENSES
CANADIAN LICENSES
AOI
Crown #
Rights Held
Active WI
AOI
Crown #
Rights Held
Active WI
WHITEBARK ENERGY LTD
Permits
Other
22178
Other
14445
Other
13533
Other
22178A
Other
34937
Other
29397
Wildwood
0512090286
Leaman
5497010208
Leaman
5497010208
Leaman
Leaman
CONOCOPHIL
LIPS
0504030331
Leaman
5497020042
Leaman
CONOCOPHIL
LIPS
Leaman
5497040009
Leaman
0597040239
Paddle
River
Paddle
River
1042
112437
top
top
top
top
top
base
top
base
top
base
from
to
from
to
from
to
from
to
from
to
MANNVILLEExcluding
WELLBORE
PNG from top GRAND
RAPIDS FM to base
BLUESKY BULLHEAD
PNG
SURFACE
GILWOOD
PNG
MBRExcluding
from top SURFACE to
base MANNVILLE
PNG
SURFACE
MANNVILLEExcluding
WELLBORE
PNG
SURFACE
GILWOOD
PNG
MBRExcluding
from top SURFACE to
base MANNVILLE
PNG
SURFACE
MANNVILLEExcluding
WELLBORE
PNG from top GRAND
RAPIDS FM to base
BLUESKY BULLHEAD
PNG from surface to
basement
PNG
SURFACE
MANNVILLEExcluding
WELLBORE
PNG from surface to
base NOTIKEN
PNG from base VIKING
to base NOTIKEN
PNG from base VIKING
to base NOTIKEN
PNG
SURFACE
NOTIKEN
PNG
SURFACE
MANNVILLEExcluding
CBM
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
top
from
SURFACE to base ROCK
CREEKExcluding CBM
56-RGE
NE36NG
PEKISKO BANFF
base PEKISKO BANFF
top
PNG
SURFACE
base
PEKISKO FMExcluding
NG from top PEKISKO
FM to base PEKISKO
FMExcluding NG from
top VIKING FM to base
VIKING
FMExcluding
NG from top DETRITAL
9-W5M
top
to
from
to
from
to
from
to
from
to
from
to
top
base
top
base
top
base
top
base
from
POOLED
2.50
10
0.625
10
0.625
POOLED
2.50
20
14
20
20
20
7
20
20
20
14.6728
13.333334
Paddle
River
112438
Paddle
River
112439
Paddle
River
126681
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
362
0599050113
876
877
878
0577070164
815
815
POOLED
18.33334
13.333334
13.333334
13.333334
20
20
20
20
14.67280
13.333334
13.333334
base
from
to
SANDSTONE to base
DETRITAL SANDSTONE
from
PNG
top
base
to
SURFACE
PEKISKO FMExcluding
NG from top PEKISKO
FM to base PEKISKO
FMExcluding NG from
top
DETRITALSANDSTONE
to
base DETRITAL
SANDSTONEExcluding
NG from top VIKING
FM to base VIKING FM
top
from
PNG
SURFACE
base
to
PEKISKO FMExcluding
NG from top VIKING
FM to base VIKING
FMExcluding NG from
top
DETRITAL
SANDSTONE to base
DETRITAL
SANDSTONEExcluding
NG from top PEKISKO
FM to base PEKISKO
FM
top
CBM
base
SURFACE
PEKISKOPNG
from
base BELLY RIVER GRP
to
PEKISKO
FMExcluding NG from
top PEKISKO FM to
base
PEKISKO
FMExcluding NG from
JURASSIC
top
DETRITAL
base
to
JURASSIC DETRITAL
NG from top DETRITAL
SANDSTONE to base
DETRITAL SANDSTONE
top
from
CBM
base
to
SURFACE
EDMONTON GRP
NG from top PEKISKO
to base PEKISKO
NG from top PEKISKO
FM to base PEKISKO
FM
NG from top PEKISKO
FM to base PEKISKO
FM
NG from top PEKISKO
BANFF
base
to
PEKISKO BANFF
NG from top JURASSIC
DETRITAL
base
JURASSIC DETRITALNG
from top PEKISKO FM
to base PEKISKO FM
57-RGE
W7,W18,N19,SW19N
G from top PEKISKO
FM to base PEKISKO
FMNG
top
JURASSIC DETRITAL to
8-W5M
from
to
2017 ANNUAL REPORT
Page | 70
CANADIAN LICENSES
CANADIAN LICENSES
AOI
Crown #
Rights Held
Active WI
AOI
Crown #
Rights Held
Active WI
WHITEBARK ENERGY LTD
Permits
Paddle
River
815
Paddle
River
Paddle
River
Paddle
River
Paddle
River
815
816
814
0577070162
Paddle
River
0577070163
Paddle
River
Paddle
River
5495090111
29151
Paddle
River
23820
Paddle
River
Paddle
River
23820
111671
Paddle
River
111672
to
to
from
from
from
JURASSIC
top
base
base
DETRITAL
NG from top PEKISKO
FM to base PEKISKO
FMNG
top
JURASSIC DETRITAL to
base
JURASSIC
DETRITAL
NG from top JURASSIC
DETRITAL
base
JURASSIC DETRITAL
NG from top JURASSIC
DETRITAL
base
JURASSIC DETRITAL
NG from top PEKISKO
FM to base PEKISKO
FM
NG from top PEKISKO
FM to base PEKISKO
FMNG
top
JURASSIC DETRITAL to
base
JURASSIC
DETRITAL
NG from top PEKISKO
FM to base PEKISKO
FMNG
top
JURASSIC DETRITAL to
base
JURASSIC
DETRITAL
from
PNG
SURFACE
to
NORDEGG MBR
NG from top JURASSIC
base
DETRITAL
JURASSIC DETRITALNG
from top PEKISKO FM
to base PEKISKO FM
NG from top JURASSIC
base
DETRITAL
JURASSIC DETRITALNG
from top PEKISKO FM
to
PEKISKO
BANFF
NG from top JURASSIC
DETRITAL
base
JURASSIC DETRITAL
top
PNG
SURFACE
base
PEKISKOExcluding NG
JURASSIC
from
DETRITAL
base
to
JURASSIC
DETRITALExcluding NG
from top PEKISKO to
base
PEKISKOExcluding NG
from top NORDEGG to
base NORDEGG
top
from
CBM
SURFACE
base
to
PEKISKO FMPNG from
top SURFACE to base
PEKISKO FMExcluding
NG from top JURASSIC
DETRITAL
base
JURASSIC
DETRITALExcluding NG
from top PEKISKO to
from
to
base
top
to
to
to
to
13.333334
13.333334
13.333334
13.333334
13.333334
13.333334
20
20
20
20
6.6660
6.6660
Paddle
River
111672
Paddle
River
111673
Paddle
River
111674
Paddle
River
Paddle
River
1043
340
Paddle
River
340
Paddle
River
Paddle
River
Paddle
River
38010
38010
38010
to
to
base
PEKISKOExcluding NG
from top NORDEGG to
base NORDEGG
top
from
PNG
SURFACE
base
to
PEKISKO FMExcluding
NG from top JURASSIC
base
DETRITAL
JURASSIC
DETRITALExcluding NG
from top PEKISKO to
base
PEKISKOExcluding NG
from top NORDEGG to
base NORDEGG
top
from
PNG
SURFACE
base
to
PEKISKO FMExcluding
NG from top JURASSIC
DETRITAL
base
JURASSIC
DETRITALExcluding NG
from top PEKISKO to
base
PEKISKOExcluding NG
from top NORDEGG to
base NORDEGG
top
from
PNG
SURFACE
base
to
PEKISKO FMExcluding
NG from top PEKISKO
FM to base PEKISKO
FMExcluding NG from
JURASSIC
top
DETRITAL
base
to
JURASSIC
DETRITALExcluding NG
from top NORDEGG to
base NORDEGG
NG from top JURASSIC
DETRITAL
base
JURASSIC SYSTEM
9-W5M
56-RGE
E25,E36NG from top
JURASSIC DETRITAL to
base
JURASSIC
DETRITAL
56-RGE
N15,NE16,SW16,S17,
W19,E21,W27,E28,W3
0,N32,N33,SE33NG
from
top
DETRITAL
JURASSIC DETRITAL
PNG
base
from
MANNVILLE to base
PEKISKO
base
from
PNG
MANNVILLE to base
NORDEGG
top
CBM
SURFACE
base
PEKISKO FMNG from
top PEKISKO to base
PEKISKONG from top
JURASSIC DETRITAL to
JURASSIC
base
to
from
to
8-W5M
to
6.6660
6.6660
6.6660
14.6728
20
20
13.333334
13.333334
13.333334
2017 ANNUAL REPORT
Page | 71
CANADIAN LICENSES
CANADIAN LICENSES
AOI
Crown #
Rights Held
Active WI
AOI
Crown #
Rights Held
Active WI
WHITEBARK ENERGY LTD
Permits
Paddle
River
Paddle
River
Paddle
River
Paddle
River
38010
38018
38011
38527
Paddle
River
38527
Paddle
River
38527
Paddle
River
Paddle
River
38527
38013
Paddle
River
38013
Paddle
River
Paddle
River
Paddle
River
Paddle
River
38013
38012
38012
38000
from
from
from
9-W5M
top
to
JURASSIC
top
base
top
base
top
base
top
base
from
to
from
to
from
to
from
to
top
DETRITAL
PNG
SURFACE
PEKISKO
PNG
SURFACE
NORDEGG
PNG
SURFACE
PEKISKO
PNG
SURFACE
MANNVILLEExcluding
NG from top VIKING
FM to base VIKING FM
NG from top PEKISKO
FM to base PEKISKO
top
FMNG
JURASSIC DETRITAL to
base
JURASSIC
DETRITAL
NG from top PEKISKO
FM to base PEKISKO
FMNG
top
JURASSIC DETRITAL to
base
JURASSIC
DETRITAL
NG
NORDEGG MBR
base NORDEGG MBR
56-RGE
NW25,35,W36PNG
from top SURFACE to
base
PEKISKO
FMExcluding NG from
JURASSIC
top
DETRITAL
base
to
JURASSIC
DETRITALExcluding NG
from top PEKISKO FM
to base PEKISKO FM
PNG from base BELLY
RIVER GRP to base
PEKISKO FMCBM from
top SURFACE to base
BASEMENTExcluding
NG from top PEKISKO
FM to base PEKISKO
FMExcluding NG from
JURASSIC
top
DETRITAL
base
to
JURASSIC DETRITAL
56-RGE
N26PNG
SURFACE
PEKISKO FM
NG from top JURASSIC
base
DETRITAL
JURASSIC DETRITALNG
from top PEKISKO FM
to base PEKISKO FM
NG from top JURASSIC
base
DETRITAL
JURASSIC DETRITAL
NG from top JURASSIC
DETRITAL
base
JURASSIC DETRITAL
9-W5M
top
base
from
to
to
to
to
13.333334
13.333334
13.333334
2.334
13.333334
13.333334
13.333334
13.333334
13.333334
13.333334
20
20
20
Paddle
River
Paddle
River
38000
37999
Paddle
River
37999
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
360
360
0595030612
1304B
1304B
21810
21811
0588020179
0581090214
0597120230
0586020328
0595110324
0594030698
5404040707
CONOCOPHIL
LIPS CANADA
ENERGY
PARTNERSHIP
5409100375
to
from
8-W5M
8-W5M
top
to
NG from top PEKISKO
FM to base PEKISKO
FM
NG
NORDEGG MBR
base NORDEGG MBR
56-RGE
NE18,W21,W28,S32,S
W3356-RGE
N17,E20,29,SE3156-
RGE 8-W5M SW2056-
RGE
8-W5M
NE19,NW20,SE30NG
JURASSIC
top
from
DETRITAL
base
to
JURASSIC DETRITALNG
from top PEKISKO FM
to base PEKISKO FM
NG from top JURASSIC
DETRITAL
base
JURASSIC DETRITALNG
from top PEKISKO FM
to base PEKISKO FM
NG from top VIKING
FM to base VIKING FM
8-W5M
57-RGE
S2,S3,4NG
from top
DETRITAL SANDSTONE
base DETRITAL
to
SANDSTONE
PNG from surface to
base NORDEGG
NG from top SURFACE
to base NORDEGG
top
NG
NORDEGG
to base
NORDEGGNG from top
PEKISKO
base
PEKISKO
PNG from surface to
base NORDEGG
PNG from surface to
base NORDEGG
PNG from surface to
base NORDEGG
from
PNG
SURFACE
to
NORDEGG
PNG from surface to
base NORDEGG
PNG from surface to
base NORDEGG
PNG from surface to
base NORDEGG
PNG from surface to
base NORDEGG
from
PNG
SURFACE
to
NORDEGG
PNG
SURFACE
NORDEGGExcluding
CBM
PNG
SURFACE
MANNVILLEExcluding
WELLBORE PROD
from
to
from
to
top
base
top
base
top
base
top
top
from
to
20
13.333334
13.333334
6.666
13.333334
20
20
20
20
20
20
5.102
8
8
20
20
13.334
13.334
20
2017 ANNUAL REPORT
Page | 72
CANADIAN LICENSES
CANADIAN LICENSES
Crown #
Rights Held
Active WI
AOI
Crown #
Rights Held
Active WI
WHITEBARK ENERGY LTD
Permits
AOI
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
0509010131
0511030676
CONOCOPHIL
LIPS
CONOCOPHIL
LIPS
0595080624
0581100188
0511050342
5497100192
0597040236
0506070654
0513020072
5414020096
5414100229
Thorsby
0512100118
Thorsby
0412100075
Thorsby
0412100078
Thorsby
0412100079
Thorsby
0412100080
Thorsby
0412100081
top
base
top
base
top
base
top
base
top
base
from
to
from
to
from
to
from
to
from
to
PNG
top
from
MANNVILLE to base
MANNVILLEExcluding
WELLBORE PROD
PNG
top
from
MANNVILLE to base
MANNVILLE
PNG
SURFACE
OSTRACOD
PNG
SURFACE
OSTRACOD
PNG
SURFACE
NORDEGGExcluding
WELLBORE
PNG
SURFACE
NORDEGG
PNG
top
from
MANNVILLE to base
MANNVILLE
PNG from surface to
base
MANNVILLEExcluding
CBM
PNG
top
from
GLAUCONITIC to base
GLAUCONITICExcludin
g CBM
PNG
SURFACE
NORDEGG
PNG from surface to
basement
PNG from surface to
basement
top
PNG
SURFACE
base
BASEMENTTract 2 55-
RGE 7-W5M NE30PNG
from top SURFACE to
base
BASEMENTExcluding
PNG
top
from
MANNVILLE to base
MANNVILLETract 3 55-
7-W5M
RGE
NW29PNG from base
MANNVILLE to base
BASEMENT
PNG
CARDIUM
BASEMENT
PNG
CARDIUM
MANNVILLE
PNG
CARDIUM
PNG
CARDIUM
BASEMENT
PNG
CARDIUM
PNG
CARDIUM
base
to base
base
to base
base
to base
from
to
from
from
from
from
from
from
base
base
base
20
20
20
20
13
13
20
4
4
13
20
20
20
20
20
20
20
20
20
Thorsby
0412100082
Thorsby
0412100083
Thorsby
0412100084
Thorsby
0412100085
Thorsby
0412100086
Thorsby
0412100087
Thorsby
0412100088
Thorsby
0412100089
Thorsby
0412100090
Thorsby
0412100091
Thorsby
0412100092
Thorsby
0412100093
Thorsby
0412120147
Thorsby
0508080372
Thornbury
0593040701
Thornbury
0593040701
Thornbury
0507010387
Thornbury
0507010388
Thornbury
5495100055
Other
Other
Paddle
River
Paddle
River
Paddle
River
0413040016
0502030291
0577030155
0182030004
0182030004
20
20
20
20
20
20
20
20
20
20
20
20
20
10
20
20
20
20
20
20
7
1.875
0.83334
APO
0.83334
base
base
base
base
base
base
from
from
from
from
from
from
from
from
from
from
from
from
from
base
to base
base
to base
base
to base
base
to base
base
to base
base
to base
base
to base
PNG
CARDIUM
PNG
CARDIUM
PNG
CARDIUM
PNG
CARDIUM
BASEMENT
PNG
CARDIUM
BASEMENT
PNG
CARDIUM
PNG
CARDIUM
BASEMENT
PNG
CARDIUM
BASEMENT
PNG
CARDIUM
BASEMENT
PNG
CARDIUM
PNG
CARDIUM
BASEMENT
PNG
CARDIUM
BASEMENT
PNG
CARDIUM
PNG from base BELLY
RIVER
base
to
CARDIUM
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLEExcluding
CBM
PNG from base VIKING
to base MANNVILLE
PNG
SURFACE
BLUESKY BULLHEAD
NG
NORDEGG MBR
base NORDEGG MBR
PNG
NORDEGG MBR
base NORDEGG MBR
top
PNG
base
SURFACE
BELLY
RIVER
GRPExcluding NG from
top BELLY RIVER GRP
from
to
from
to
from
to
from
to
from
to
from
to
from
to
top
base
top
base
top
base
top
base
top
base
top
base
top
to
top
to
from
from
2017 ANNUAL REPORT
Page | 73
CANADIAN LICENSES
CANADIAN LICENSES
AOI
Crown #
Rights Held
Active WI
AOI
Crown #
Rights Held
Active WI
WHITEBARK ENERGY LTD
Permits
Paddle
River
0182030004
Paddle
River
0182030004
Other
38222
Other
5405120248
Paddle
River
0401080193
Paddle
River
Paddle
River
5411110203
5411110203
Paddle
River
Paddle
River
Thornbury
5411110210
5411110210
0595110488
Thornbury
5498010077
Thornbury
5495100160
Thornbury
0591050535
Thornbury
0591050534
Thornbury
0595110408
Thornbury
5495090143
Thornbury
5495090143
Thornbury
0595090673
Thornbury
0595090673
from
top
to
top
base
top
base
from
to
from
to
from
to
from
to
to base BELLY RIVER
GRP
top
PNG
base
SURFACE
BELLY
RIVER
GRPExcluding NG from
top BELLY RIVER GRP
to base BELLY RIVER
GRP
NG
NORDEGG MBR
base NORDEGG MBR
PNG
SURFACE
BLUESKY BULLHEAD
top
PNG
SURFACE
base
PEACE RIVERExcluding
WELLBORE
PNG
SURFACE
MANNVILLEExcluding
PNG
top
from
NOTIKEN MBR to base
NOTIKEN MBR
PNG from surface to
base MANNVILLE
PNG from base BELLY
base
to
RIVER
MANNVILLE
PNG from surface to
base BANFF
PNG from base BELLY
RIVER to base BANFF
PNG
SURFACE
MANNVILLE
PNG from top GRAND
RAPIDS FM to base
GRAND RAPIDS FM
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
79-RGE
3,4PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
79-RGE
15-W4M
14,23,24,26PNG from
top SURFACE to base
MANNVILLE
79-RGE
25PNG
SURFACE
MANNVILLE
15-W4M
top
base
14-W4M
top
base
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
top
base
top
base
top
base
top
base
top
base
top
base
Thornbury
0595110411
APO
0.83334
Thornbury
0591050533
Thornbury
0586030343
Thornbury
0587070166
Thornbury
0586030344
Thornbury
0586030344
Thornbury
0585050215
Thornbury
0594060666
Thornbury
0593060378
Thornbury
0593060380
Thornbury
0593060381
Thornbury
0594110276
Thornbury
0590010409
Thornbury
0593060383
Thornbury
0593090784
Thornbury
0593090784
Thornbury
0590060342
Thornbury
0590060343
Thornbury
0589050395
Thornbury
0586010365
Thornbury
0586010365
Thornbury
058905A395
1.875
8.75
5
4
20
20
20
20
20
20
20
20
20
20
20
20
20
20
from
to
from
to
from
to
from
to
from
to
from
to
from
to
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
BASEMENT
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
20
20
17
20
17
14.75
4
4
4
4
4
4
4
4
4
4
4
4
4
2
2
4
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
2017 ANNUAL REPORT
Page | 74
CANADIAN LICENSES
AOI
Crown #
Rights Held
Active WI
Thornbury
058905A395
Thornbury
0585050217
Thornbury
0590010419
Thornbury
0586030342
Thornbury
5495100050
Thornbury
5495100054
Thornbury
5494100161
Thornbury
5494100161
Thornbury
5494100161
Thornbury
5495100052
Thornbury
0505060901
Thornbury
0505080596
Thornbury
0505080599
Thornbury
0500110212
Thornbury
0596060259
Thornbury
0595060345
Thornbury
0596010191
Thornbury
0178050155
Thornbury
0514120033
Other
0582080144
Other
058208A144
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLEExcluding
WELLBORE
PNG
SURFACE
MANNVILLEExcluding
CBM
PNG
SURFACE
MCMURRAY
FMExcluding CBM
top
PNG
SURFACE
base
MCMURRAYExcluding
CBM
PNG
SURFACE
MCMURRAY
FMExcluding CBM
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MCMURRAY
PNG
SURFACE
MCMURRAY
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
base
from
MANNVILLE to base
BASEMENT
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
from
to
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
top
base
4
4
6.75
4.5
20
20
20
20
20
20
20
20
20
16
16
16
16
BPO 20
20
1.541664
4.874994
WHITEBARK ENERGY LTD
Permits
CANADIAN LICENSES
Crown #
Rights Held
Active WI
AOI
Other
38215
Other
13198
Other
Other
0276080004
5414110077
Other
0178100008
Other
Other
0178100001
0595040193
Other
0593110766
Other
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
Paddle
River
M107265
058109A212
058109A212
0500080482
0581090185
0581100188
0581100188
5411110204
Whitecourt
0507010723
Whitecourt
0501060447
Whitecourt
0501080238
Whitecourt
0597040244
Whitecourt
0577020072
top
base
top
base
from
to
from
to
PNG
SURFACE
VIKING FM
PNG from base UPPER
MANNVILLE FM
to
base BANFF FM
NG from top BANFF
FM to base BANFF FM
base
from
PNG
GILWOOD
to base
BASEMENT
PNG
SURFACE
VIKING FM
Tract 100 62-RGE 4-
W5M 3
PNG
SURFACE
BLUESKY-
BULLHEADExcluding
CBM
top
from
MANNVILLE to base
MANNVILLE
PNG
SURFACE
BLUESKY-BULLHEAD
WELLBORE
from
to
from
to
top
base
top
base
top
base
top
base
top
base
top
base
from
to
from
to
from
to
from
to
PNG
SURFACE
NORDEGG
PNG
SURFACE
NORDEGGExcluding
WELLBORE
PNG
SURFACE
BELLY RIVER
PNG from base BELLY
base
RIVER
to
NORDEGGCBM
from
top SURFACE to base
NORDEGG
PNG
SURFACE
NORDEGG
PNG from base BELLY
RIVER
base
to
NORDEGGExcluding
CBM
PNG
base
from
MANNVILLE to base
NORDEGG
PNG from base BELLY
RIVER GRP to base
MANNVILLE
PNG
SURFACE
BELLY RIVER GRP
PNG
NORDEGG MBR
base PEKISKO FM
PNG
SURFACE
PEKISKO FM
top
PNG
SURFACE
base
PEKISKO FMExcluding
from
to
from
to
from
to
base
to
top
base
top
base
from
6.668
5
5
20
2.5
5
20
10
20
5.102
5.102
4
5.3
11.775
11.775
20
POOLED
1.25
5
10
2
2.454
2017 ANNUAL REPORT
Page | 75
CANADIAN LICENSES
CANADIAN LICENSES
AOI
Crown #
Rights Held
Active WI
AOI
Crown #
Rights Held
Active WI
WHITEBARK ENERGY LTD
Permits
Whitecourt
0577020073
Whitecourt
2985
Whitecourt
38510
Whitecourt
38510
Whitecourt
38510
Whitecourt
38510
Whitecourt
38510
Whitecourt
38510
Whitecourt
38510
Whitecourt
38510
Whitecourt
38510
Whitecourt
38510
Whitecourt
38509
Whitecourt
38509
Whitecourt
38509
Whitecourt
38509
Whitecourt
38509
to
to
from
top
base
from
to
CBM
SURFACE
BASEMENT
top
NG
NORDEGG
to base
NORDEGGNG from top
PEKISKO
base
PEKISKOCBM from top
base
SURFACE
PEKISKO
PNG from top PEKISKO
FM to base PEKISKO
FM
PNG from base BELLY
RIVER GRP to base
MANNVILLE
PNG
SURFACE
PEKISKO FM
WELLBORE PROD
from
to
top
base
to
from
to
from
to
from
to
PNG from top BASAL
QUARTZ
base
PEKISKOExcluding
CBM
top
PNG
SURFACE
base
PEKISKOTract 2 60-
RGE 11-W5M S35PNG
from top SURFACE to
base NORDEGG
PNG from top PEKISKO
FM to base PEKISKO
FM
top
PNG
SURFACE
base
PEKISKO FMExcluding
PNG from top BELLY
RIVER to base BELLY
RIVER
top
PNG
SURFACE
base
PEKISKO FMExcluding
PNG from top BELLY
RIVER to base BELLY
RIVER
PNG
SURFACE
PEKISKO FM
top
CBM
SURFACE
base
PEKISKONG from top
NORDEGG
to base
NORDEGGNG from top
base
PEKISKO
PEKISKO
from
PNG
SURFACE
to
NORDEGG MBR
PNG
NORDEGG MBR
base NORDEGG MBR
NG
from
NORDEGG
NORDEGG
WELLBORE PROD
top
to base
from
to
from
to
top
base
top
base
top
to
from
to
CBM
NORDEGG MBR
from
base
to
4.2
Whitecourt
38509
POOLED 5
POOLED
1.25
10
2.454
2.78333
10
Whitecourt
120107
Whitecourt
21453
Whitecourt
21453
Whitecourt
16143
Whitecourt
16143
POOLED 5
Whitecourt
38508
Whitecourt
38508
Whitecourt
38508
Whitecourt
120106
Whitecourt
120108
Whitecourt
120105
Whitecourt
934A
Whitecourt
934A
Whitecourt
38504
10
10
10
4.2
10
POOLED 4.2
POOLED
9.125993
POOLED 4
10
from
from
top
base
top
base
top
base
top
base
from
to
from
to
from
to
from
to
from
to
base PEKISKO FMPNG
from base NORDEGG
MBR to base PEKISKO
FM
top
NG
to base
NORDEGG
NORDEGGCBM
from
top SURFACE to base
NORDEGG
top
NG
to base
NORDEGG
NORDEGGCBM
from
top PEKISKO to base
PEKISKOExcluding
WELLBORE
top
CBM
SURFACE
base
NORDEGG MBRPNG
from base NORDEGG
MBR to base PEKISKO
FM
CBM
SURFACE
PEKISKO FM
PNG
SURFACE
PEKISKO FM
PNG
SURFACE
PEKISKO FM
PNG
SURFACE
PEKISKO FM
PNG
SURFACE
PEKISKO FM
PNG
SURFACE
PEKISKO FM
PNG
NORDEGG MBR
base NORDEGG MBR
PNG
top
from
SURFACE to top BASAL
QUARTZExcluding
CBM
top
NG
to base
NORDEGG
from
NORDEGGCBM
top SURFACE to base
NORDEGG
59-RGE
SW30NG
NORDEGG MBR
base NORDEGG MBR
NG from top BELLY
RIVER GRP to base
BELLY RIVER GRPNG
LOWER
from
MANNVILLE to base
LOWER MANNVILLE
NG from top BELLY
RIVER GRP to base
BELLY RIVER GRPNG
from
LOWER
MANNVILLE to base
LOWER MANNVILLE
11-W5M
top
to
from
to
from
to
top
base
top
base
top
to
from
from
from
top
top
4.2
POOLED 4
POOLED
2.25
2.25
10
6
6
10
10
POOLED 4.2
7.42222
4.2
8.3125
POOLED
8.545542
POOLED
8.545542
2017 ANNUAL REPORT
Page | 76
CANADIAN LICENSES
CANADIAN LICENSES
AOI
Crown #
Rights Held
Active WI
AOI
Crown #
Rights Held
Active WI
WHITEBARK ENERGY LTD
Permits
Whitecourt
38504
Whitecourt
38477
Whitecourt
38477
Whitecourt
38477
Whitecourt
38477
Whitecourt
0578080151
Whitecourt
0596010415
Whitecourt
124127
Whitecourt
127754
Whitecourt
127754
Whitecourt
127754
Whitecourt
931
Whitecourt
931
Whitecourt
931
top
top
base
top
base
from
to
59-RGE 12-W5M 36NG
from
LOWER
MANNVILLE to base
LOWER
MANNVILLENG
from
top PEKISKO FM to
base PEKISKO FMNG
from top NORDEGG
base
to
MBR
NORDEGG MBR
PNG
SURFACE
LOWER MANNVILLE
NG from top SURFACE
to base SURFACE
PET from top SURFACE
to base NORDEGG
MBR
PNG from base LOWER
MANNVILLE to base
NORDEGG
MBRExcluding
NG
from top NORDEGG
base
to
MBR
NORDEGG MBR
from
PNG
SURFACE
to
NORDEGG MBR
top
from
CBM
SURFACE
base
to
NORDEGG MBRPNG
from base NORDEGG
MBR to base PEKISKO
FM
NG
NORDEGG MBR
base NORDEGG MBR
top
PNG
base
SURFACE
PEKISKO FMExcluding
NG from top PEKISKO
FM to base PEKISKO
FMExcluding NG from
top NORDEGG MBR to
base NORDEGG MBR
11-W5M
59-RGE
E31NG
top
PEKISKO FM to base
PEKISKO FMNG from
top NORDEGG MBR to
base NORDEGG MBR
NG from top PEKISKO
FM to base PEKISKO
FM
NG from top PEKISKO
FM to base PEKISKO
FM
top
NG
to
NORDEGG MBR
NORDEGG
base
MBRNG
top
from
PEKISKO FM to base
PEKISKO FM
NG from top PEKISKO
FM to base PEKISKO
top
FMNG
to
NORDEGG MBR
NORDEGG
base
from
to
top
to
from
from
from
from
10
5
10
10
10
10
Whitecourt
931
Whitecourt
127739
Whitecourt
38768
Whitecourt
38768
POOLED
2.25
Whitecourt
38766
5
8.3125
8.3125
8.3125
8.3125
8.3125
Whitecourt
38766
Whitecourt
38767
Whitecourt
38511
Whitecourt
0500060518
8.3125
Whitecourt
932
Whitecourt
1262
to
from
from
from
top
to
top
to base
MBRNG
top
LOWER MANNVILLE to
base
LOWER
MANNVILLE
NG from top PEKISKO
FM to base PEKISKO
FM
60-RGE 12-W5M 2PNG
from top SURFACE to
base
NORDEGGExcluding
NG
NORDEGG
NORDEGGExcluding
NG from top LOWER
MANNVILLE to base
LOWER
MANNVILLETract 2 60-
RGE 12-W5M E3PNG
from top SURFACE to
base NORDEGG
NG
NORDEGG MBR
base NORDEGG MBR
PNG from top UPPER
to
MANNVILLE FM
base
UPPER
MANNVILLE
FMExcluding CBM
59-RGE
11-W5M
7,18,S19PNG from top
SURFACE
base
NORDEGGExcluding
CBM
SURFACE
NORDEGGExcluding
NG
NORDEGG
NORDEGG
PNG
SURFACE
NORDEGGExcluding
NG
NORDEGG
NORDEGGExcluding
PNG from top UPPER
MANNVILLE to base
UPPER
MANNVILLEExcluding
CBM
SURFACE
NORDEGG
NG from top PEKISKO
FM to base PEKISKO
FM
PNG
base
from
MANNVILLE to base
PEKISKO FM
NG from top PEKISKO
FM to base PEKISKO
FMNG
top
JURASSIC SYSTEM to
base JURASSIC SYSTEM
top
NG
from
to
NORDEGG MBR
base NORDEGG MBR
59-RGE
11-W5M
S28,NW28NG from top
top
to base
top
to base
from
to
from
to
from
to
top
base
top
base
top
base
from
from
from
8.3125
4.4446
8.57143000
00
POOLED
9.508925
7.5
7.5
10
1.28
7.5
8.3125
8.48829
2017 ANNUAL REPORT
Page | 77
CANADIAN LICENSES
CANADIAN LICENSES
AOI
Crown #
Rights Held
Active WI
AOI
Crown #
Rights Held
Active WI
WHITEBARK ENERGY LTD
Permits
Whitecourt
933
Whitecourt
935
Whitecourt
21400
Whitecourt
21400
Whitecourt
21400
Whitecourt
21400
Whitecourt
38505
Whitecourt
38505
Whitecourt
1263
Whitecourt
21401
Whitecourt
16143A
Whitecourt
5496080102
Whitecourt
5496080102
Whitecourt
5496080102
Whitecourt
37822
from
from
from
from
to
LOWER MANNVILLE to
LOWER
base
MANNVILLENG
from
top NORDEGG MBR to
NORDEGG
base
MBRNG
top
from
PEKISKO FM to base
PEKISKO FM
top
NG
to
NORDEGG MBR
NORDEGG
base
MBRNG
top
from
PEKISKO FM to base
PEKISKO FM
11-W5M
60-RGE
W4,5NG
top
PEKISKO FM to base
PEKISKO FM
top
PNG
SURFACE
base
UPPER MANNVILLE FM
top
from
PNG
SURFACE
base
to
UPPER MANNVILLE FM
top
NG
from
NORDEGG MBR
to
base NORDEGG MBR
PNG from top UPPER
to
MANNVILLE FM
base
UPPER
MANNVILLE
FMExcluding CBM
top
NG
to
NORDEGG MBR
NORDEGG
base
MBRNG
top
from
LOWER MANNVILLE to
LOWER
base
from
MANNVILLENG
top PEKISKO FM to
base PEKISKO FM
top
PNG
SURFACE
base
UPPER MANNVILLE FM
top
NG
from
NORDEGG MBR
to
base NORDEGG MBR
NG
from
NORDEGG MBR
base NORDEGG MBR
from
PNG
SURFACE
to
NORDEGG MBR
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
PNG
SURFACE
MANNVILLE
top
PNG
base
SURFACE
PEKISKO FMExcluding
NG from top JURASSIC
SYSTEM
base
JURASSIC SYSTEM
from
to
from
to
from
to
from
to
from
to
top
base
top
base
top
base
top
base
top
to
to
Whitecourt
120106B
Whitecourt
120106B
Whitecourt
0597030792
Whitecourt
BP/CANPAR
Whitecourt
0501030376
Whitecourt
5413110079
Whitecourt
5496120022
Wildwood
0512110145
Wildwood
0512110314
Wildwood
0512110315
Wildwood
0512110316
Wildwood
0512110317
Wildwood
0512110319
Wildwood
0512110320
Wildwood
0597100806
Wildwood
0593100169
Wildwood
0504030792
8.3125
8.3125
BPO3.75
5
10
POOLED
9.508925
10
5
7.125
10
10
3.333
1.6
1.6
10
to
to
to
from
from
from
top
base
from
to
top
NG
to base
NORDEGG
NORDEGGCBM
from
top SURFACE to base
NORDEGG
top
NG
NORDEGG
to base
NORDEGGNG from top
base
PEKISKO
PEKISKOCBM from top
SURFACE
base
PEKISKO
NG from top PEKISKO
FM to base PEKISKO
FMNG
top
JURASSIC SYSTEM to
base JURASSIC SYSTEM
NG from top LOWER
MANNVILLE to base
LOWER
MANNVILLENG
from
top NORDEGG MBR to
NORDEGG
base
top
from
MBRNG
PEKISKO FM to base
PEKISKO FM
PNG
SURFACE
PEKISKO FM
61-RGE
11-W5M
N2,SE2PNG from top
SURFACE
base
BASEMENTTract 2 61-
RGE 11-W5M SW2PNG
from base VIKING to
base BASEMENT
PNG
WELLBORE
WELLBORE
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
PNG
to
MANNVILLE
PNG
SURFACE
VIKING FM
PNG from base VIKING
FM to base PEKISKO
FMExcluding CBM
PNG from surface to
base NORDEGG
top
to base
from
to
from
to
from
to
from
to
from
to
from
to
from
to
top
base
top
base
top
base
top
base
top
base
top
base
top
base
from
base
4.2
4.2
7.5
10
10
20
1.6
20
20
20
20
20
20
20
20
BPO
10.0008
6.668
2017 ANNUAL REPORT
Page | 78
CANADIAN LICENSES
CANADIAN LICENSES
AOI
Crown #
Rights Held
Active WI
AOI
Crown #
Rights Held
Active WI
WHITEBARK ENERGY LTD
Permits
Wildwood
0504040482
Wildwood
26266
Wildwood
0594110221
Wildwood
0597030415
Wildwood
0597030415
Wildwood
0597100906
Wildwood
0597100906
Wildwood
0506070655
Wildwood
0504100171
Wildwood
0502110177
Wildwood
0512110318
Wildwood
0513040053
Wildwood
0513080054
Wildwood
5417030079
13.334
19.2985
10
20
20
20
20
20
20
20
20
20
20
20
Wildwood
5413070101
Wildwood
5413070101
Wildwood
5413070102
Wildwood
5413080085
Wildwood
5413080086
Wildwood
5413080086
Leaman
0581090178
Leaman
0580120177
Wildwood
0512070371
Wildwood
0512080346
Wildwood
5413070105
top
base
top
base
from
to
from
to
PNG
SURFACE
NORDEGG
PNG from surface to
base
MANNVILLEExcluding
PNG from top VIKING
to base VIKING
from
PNG
SURFACE
to
MANNVILLEExcluding
CBM
PNG from surface to
base EDMONTON
PNG from surface to
base EDM GROUP
PNG from surface to
base MANNVILLE
top
CBM
base
SURFACE
MANNVILLETract
2
WELLBORE ONLYTract
3 WELLBORE ONLY
base
from
PNG
MANNVILLE to base
NORDEGG
PNG from base VIKING
to base NORDEGG
PNG from surface to
base NORDEGG
PNG from surface to
basement
PNG
base
from
MANNVILLE to base
NORDEGG
PNG
SURFACE
NORDEGG
top
PNG
SURFACE
base
BASEMENTTract 2 53-
RGE 9-W5M 28PNG
EDM
base
from
from
to
from
to
top
base
to
top
base
top
base
top
base
top
base
from
to
from
to
from
to
from
to
10-W5M
top
base
GROUP
base
BASEMENTTract 3 53-
RGE 9-W5M W26PNG
from top SURFACE to
base PEKISKO
from
PNG
SURFACE
to
BASEMENT
PNG
SURFACE
MANNVILLE
PNG
SURFACE
BASEMENT
52-RGE
13,24PNG
SURFACE
BASEMENT
PNG
SURFACE
BASEMENT
top
PNG
SURFACE
base
MANNVILLEPNG from
base NORDEGG
to
base BASEMENT
from
PNG
SURFACE
to
NORDEGG MBR
PNG
SURFACE
NORDEGG
PNG
SURFACE
BASEMENT
PNG
base
from
MANNVILLE to base
BASEMENTExcluding
WELLBORE
PNG
SURFACE
BASEMENT
from
to
from
to
from
to
from
to
top
base
top
base
top
base
top
top
20
20
20
20
20
20
4.5
6.70072
20
20
- 20
2017 ANNUAL REPORT
Page | 79