ABN 68 079432 796
2018 Annual Report
WHITEBARK ENERGY LTD - Annual Financial Report 30 June 2018
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
11
14
22
23
29
30
31
32
33
63
64
67
2018 ANNUAL REPORT
Page | 2
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
KPMG
235 St Georges Terrace
Perth WA 6000
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 and options are listed
on the Australian Securities Exchange (ASX: WBE, WBEO)
Company website
www.whitebarkenergy.com
2018 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Chairman’s Letter
Dear Fellow Shareholders,
The 2017/2018 Financial Year has been one of transformation for Whitebark. On July 3rd, 2017 Transerv Energy became
Whitebark Energy, in order to better reflect the Company’s focus on Canada, following the acquisition of 20% of Point
Loma Resources Ltd’s assets in Alberta, Canada (the PLJV).
Whitebark acquired the interest in the PLJV because it saw that there were many opportunities for growth in this mostly
Mannville play area. A lot of historical vertical well production from an area of limited porosity and permeability pointed
to the viability of horizontal stimulated wells.
During the year the Company’s share of the PLJV production was 90,238 barrels of oil equivalent (BOE). From acquisition
until June 30 2018 net production has increased 100% to 361 BOE/D and net reserves 145% to 2036 MBOE via drilling
and acquisition. Additionally, the PLJV has some 19,000 acres of Duvernay Rights which is a fast-developing oil play in
and around the PLJV lands.
The PLJV has a solid plan to deliver additional growth for the current financial year and will keep shareholders informed
as it progresses.
In Western Australia the Company also participated for 15% in the Xanadu discovery on/offshore WA and became the
100% owner of the Warro Gas Field which remains suspended under the WA Government fracking moratorium. Plans
for shooting 3D seismic over Xanadu are progressing prior to drilling an appraisal well.
The Company raised $1.85 million in November 2017 and post balance date has finalised a capital raising of $2.33 million
before costs to further its Canadian plans.
While the company’s share price has not matched the asset growth your board believes that it has built a strong base
for growth.
Thank you for your support during the year,
Yours sincerely,
Charles W Morgan
Chairman
2018 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Review of Operations
Review Of Operations
1.1 Overview
During the 2018 financial year the Company produced 90,238 barrels of oil equivalent, increased 2P reserves by 145%,
drilled an oil discovery well at Xanadu-1 in the offshore Perth Basin and identified an additional 40 million barrels of in
place oil resources in a successful 3D seismic campaign in Canada.
Net production from the Point Loma Joint Venture (PLJV) for the 2018 financial year was 10,736 barrels of oil, 3,374
barrels of NGL’s and 456 mmcf of gas with revenue of $1.95 million dollars.
Activities were focussed on growing the Company’s Canadian assets by increasing production and adding to the land
and facilities. Operations became cash positive during the second half of the 2018 financial year.
In Western Australia, the Xanadu-1 well was drilled in the first half of the financial year, resulting in an oil discovery. A
follow-up 3D seismic survey planned for the first half of 2018 has been delayed due to environmental approval
constraints but approvals are now expected in time to enable acquisition in FY2019.
Other operations at Warro in Western Australia, have paused due to the State Government Fraccing Inquiry. The
company is ready to restart activities when the moratorium is lifted.
1.2 Canadian Operations
The PLJV assets held with Point Loma Resources have grown in the past 12 months as described below. The Company
plans to continue to grow is Canadian assets during FY 2019 through a combination of acquisitions and an active drilling
program which will commence in December 2018.
1.2.1 Acquisitions
The Gilby Acquisition was announced on 21 March 2018 and comprised approximately 26,500 gross acres of land and
associated facilities. These assets are adjacent to the PLJV’s existing landholdings and were producing approximately
450 boe/d with 30% being oil and NGLs. The assets included significant upside potential with booked Proved and
Probable undeveloped reserves as well as numerous exploration locations with multi-zone potential across the
Mannville, Cardium and Duvernay zones.
On 2nd May 2018, the Company announced the final payment of CAN$143,965 for the Gilby acquisition on 30th April,
taking WBE’s total cost of the acquisition to CAN$328,266 for a 30% share of the asset.
Smaller acquisitions were made in the first half of the financial year which expanded and consolidated the PLJV’s core
Paddle River Oil Project.
1.2.2 Development Activity
1.2.2.1 5-31 Nordegg Recompletion – West Cove
The 5-31 Nordegg well in the West Cove area was placed on production in October 2017 with initial production between
100-160boe/d. It should be noted that this production is only from a short lateral intersecting the upper Nordegg. It is
expected that longer horizontal laterals would produce at higher rates. The well pad is configured for two additional
wells, which would produce through the existing pipeline infrastructure enhancing the economics of future wells (Refer
ASX release dated 24 October 2017).
In addition to the Nordegg pool, the area has an underlying Banff oil target. During the period, 3D seismic was
acquired to delineate the Nordegg pool further and assist in evaluating the Banff and other deeper targets. A further
5,760 acres of leases over surrounding acreage were acquired to secure the Nordegg and Banff potential (see
exploration section below).
1.2.2.2 Paddle River – Additional Wells and Drilling Locations
The 1-32 horizontal development well was drilled into the Ostracod A pool. As expected, the well encountered oil shows.
The JV is planning to sidetrack the identified oil pay zone. (Refer ASX release dated 11 October 2017).
In addition, the previously announced, acquired horizontal well (drilled in 2014), was transferred and placed on
production in November 2017. Two additional, potential horizontal drilling opportunities are also supported on the
acquired land.
2018 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Review of Operations
The PLJV has identified a means to significantly reduce operating costs of the field by converting a non-productive
horizontal well on the periphery of the field to a water injector. The associated plant and equipment will be sourced
from other facilities owned by the JV. This water injection project is expected to be completed in the first quarter of
2019 and result in an ~$80,000/month reduction in field opex.
1.2.3 Exploration
1.2.3.1 Thorsby Area - 11-18 Glauconite and 9-18 Sparky Wells
The 11-18 Glauconite well was recompleted and is presently producing gas at an average rate of 800 mcf/day. WBE has
an 80% interest in this well until payout of the cost of the associated pipeline. The neighbouring 9-18 horizontal Sparky
exploration well which was drilled and completed, is presently shut in due to poor performance.
1.2.3.2 Westcove 3D
The PLJV undertook a 3D Seismic Program during the third quarter of the financial year in the Westcove area (Refer ASX
Release 30 May 2018). The data were processed and tied to adjacent surveys and wells and interpretation of those
results continues. The program identified significant new drilling targets with potential for over 40 million boe in place
adjacent to the PLJV’s Paddle River oil field.
The main objective of the 3D program was to define the extent of the Nordegg oil accumulation being produced by the
PLJV’s horizontal well 5-31 and provide guidance on the optimal location and direction for a planned Nordegg horizontal
development well. A secondary objective was to delineate the extent of an underlying Banff Oil play in the surrounding
area and in the NW portion of the survey around well 8-11.
The 3D delivered valuable information on these objectives and also identified a potential Ostracod oil pool which
appears to be analogous to the adjacent PLJV Paddle River Ostracod oil field (Figure 1).
The 3D defined the areal extent of the Nordegg pool accumulation around well 5-31 to the north and west, and suggests
the potential for further development wells.
In the NW part of the 3D (Figure 2), the data indicate a Banff level closure with a seismic amplitude anomaly which is
usually associated with a thickening of the reservoir unit (Figure 2 and Figure 1). Importantly, well 8-11, which drilled
through the feature, appears to contain by-passed pay at the Banff level with the unit yielding high gas readings, strong
oil related fluorescence and indications of pay on the electric logs.
Figure 1 - Westcove 3D Timeslice showing location of prospects and Paddle River Pool
To the west of the Westcove 3D area, the PLJV operates the Paddle River Ostracod oil field which is held in a stratigraphic
trap formed by the reservoir unit pinching out up-dip within a paleo valley. The 3D has identified an analogous
configuration within the Westcove area (Figure 1) where the presence of a low with a seismic thickening at the Ostracod
level suggests the potential for an oil accumulation akin to the Paddle River field.
2018 ANNUAL REPORT
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The potential unrisked resources for all the features described above are set out in Table 1.
WHITEBARK ENERGY LTD
Review of Operations
Figure 2- Westcove 3d Seismic Arbitrary Line through wells 8-11 and 5-31
Table 1 - Resource Estimation Approach Westcove 3D Drilling Opportunities
Category
Resource
assessment
approach
Stra�graphic
Unit
Prospec�ve Determinis�c GRV
Cretaceous
and bbls/ac-�
Best
Es�mate
OOIP
mmbbl
10
Best Es�mate
OOIP mmbl
Net to WBE
(20% WI)
2
Con�ngent Determinis�c GRV
Mississippian
15
and bbls/ac-�
Prospec�ve Determinis�c GRV
Mississippian
5
and bbls/ac-�
3
1
Ostracod
Prospect
Banff 8-11
by-passed pay
5-31 Banff
Type of Trap
Reservoir Type
Stra�graphic
Fossiliferous
Sandstone
Structural/Stra�graphic Dolomite
Structural/Stra�graphic Dolomite
5-31 Nordegg Con�ngent
Determinis�c
Jurassic
12
2.4
Structural/Stra�graphic Limestone and
Dolomite
The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered
accumulations. These estimates have both an associated risk of discovery, as well as a risk of development. Further exploration, appraisal and
evaluation is required to determine the existence of a commercial quantity of potentially moveable hydrocarbons.
Gas to liquid conversion factor of 6 has been used in the resource estimates to deal with volumes of associated gas.
1.2.3.3 Duverney Shale Oil Acreage Surrounding Whitebark Lands
Whitebark currently has a 20% interest in approximately 19,000 gross acres (3,800 net acres or ~6 net sections) in the
West Duvernay Basin with Point Loma Resources as part of its PLJV holdings. The May 20th Alberta land sale by the
Alberta Government recorded increased transaction activity attracting C$42m of sales with the majority of the acreage
posted within the West Duvernay shale oil basin. Several large parcels of land, with combined acreage of 82,820 acres,
and located just to the southeast of PLJV lands were bought for C$33.3 million or an average price of C$347/acre (Refer
ASX Release 6 June 2018).
The Duvernay shale is an emerging oil play which continues to attract increasing industry activity and attention, with an
estimated 150 horizontal oil wells drilled mostly in the East Duvernay Basin. An analysis by Point Loma of technical data
from the West Duvernay Basin indicates similar reservoir characteristics to the East Duvernay Basin, where contingent
resources of 10 to 15 million barrels per section of original oil in place have been stated by other operators.
2018 ANNUAL REPORT
Page | 7
Point Loma’s analysis shows that the West Duvernay Basin shale has a thickness of approximately 10 to 15 metres, with
porosities ranging from 3 to 10% and TOC’s in the range of 2 to 10% which are parameters comparable to other
successful North American shale plays and those seen in the East Duvernay Basin.
WHITEBARK ENERGY LTD
Review of Operations
Figure 3 – Land Holding within the Duvernay Basin Oil Play (Left) and Duvernay Shale Oil Fairway Information (Right)
Three horizontal Duvernay shale oil wells have been drilled by other operators to date in 2018 within Whitebark’s core
area of operations at Paddle River. The results of these wells have not yet been publicly disclosed.
1.2.4 Reserves Growth
The Reserve and Resources Statement below documents the Company’s Reserves to 30 June 2018 and represent a 70%
and 145% increase in its Canadian 1P and 2P reserves to 1124 mboe and 2036 mboe respectively over the last 12
months.
Figure 4 - WBE Canada Net Reserve Growth
2018 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Review of Operations
1.3 Western Australia
The Company has interests in two areas in the Northern Perth Basin.
1.3.1 Xanadu Oil Discovery: TP/15: WBE- 15%
Norwest Energy Ltd (Operator) lodged the Xanadu Discovery Report with the DMIRS on 20th December 2017.
The Xanadu-1 discovery has confirmed the entrapment of oil in sands of the upper Irwin River Coal Measures (IRCM) in
the structure, which lies immediately adjacent to the coastline in state waters, 40 km south of the township of Dongara.
While analysis of the oil recovered from Xanadu-1 continues, initial results reveal the oil has an API gravity of 34.7o with
no H2S and extremely low levels of CO2 (0.02%). The Xanadu crude is similar to the crude produced at the Cliff Head oil
field and, upon development, is expected to receive similar pricing in the market. The minimal levels of CO2 and no H2S
detected will enable the use of lower-cost and schedule efficient development options.
Reservoir quality sands 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
“A”
“B”
“C”
Gross True
Ver�cal
Thickness (m)
7.7
6.0
4.3
Net Sand True
Ver�cal Thickness
(m)
4.6
2.8
2.7
Oil
Satura�on
Porosity
66%
46%
41%
15%
16%
17%
Net
Pay
(m)
4.6
N/A
N/A
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.
Preliminary results at Xanadu-1 indicate that the assumption of the producing Cliff Head Oil Field being the primary
analogue is correct.
All available data are currently being integrated to estimate the oil reserve potential
of the Xanadu discovery. The data indicates that in addition to the potential up-dip,
there is evidence that “down-dip” volumes may also be present (Refer ASX release
dated 25 September 2017).
The JV is implementing a program to determine the best means to appraise the
Xanadu discovery through the acquisition of 3D. The Xanadu 3D seismic survey
covers 40km2 and has been designed to define the extent of the Xanadu Discovery.
It will drive future development plans, including the selection of future well
locations, field studies addressing oil-in-place (OOIP) and recoverable oil volume
calculations.
The area is already covered by modern aeromagnetic and gravity data, which, when
integrated with new 3D seismic data, will provide a detailed understanding of the
Xanadu oil field. Acquiring 3D seismic data will allow a new well to be optimally
placed, with the expectation of completing this well as a commercial producer, and
assist in the positioning of any subsequent development wells. The 3D seismic
acquisition is now scheduled for H1 2019 following the award of a contract to
Synterra Technologies, a leading global provider of geophysical services and subject
to environmental approvals.
The TP/15 Joint Venture remains fully committed to the development of the Xanadu
Discovery and a five-year permit renewal application has been submitted to the
Department of Mines, Industry Regulation and Safety (DMIRS) with the Xanadu 3D
seismic survey fulfilling the Year One commitment of the five-year work program.
Figure 5 - Xanadu 40 km2 3D Seismic Survey
Acquisition area overlying a full tensor
gradiometric image, highlighting updip and
downdip potential
2018 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Review of Operations
1.3.2 Warro Gas Project: RL-7: WBE 100%
The Warro Project, located northeast of Perth, has 8-10 trillion cubic
feet (Tcf) in place and potentially 1.7 – 3.6 Tcf of recoverable gas (Refer
ASX announcement 19 November 2015).
On 26th June 2018, Whitebark announced the return to full ownership
and control of the Warro Field after Alcoa agreed to relinquish its 43%
interest earned in the asset. As part of the transfer, Alcoa has agreed
to provide future funding to cover its share of plug and abandonment
liabilities in the event any of the wells are not used in future
development scenarios.
The Warro partnership between Whitebark (and its predecessors and
subsidiaries) and Alcoa has spanned a decade including the drilling of
four wells and the acquisition of 90km2 of 3D seismic.
This will allow Whitebark greater ability and flexibility to progress the
asset once the current fracking moratorium in WA is lifted, a prospect
that the company is confident will be the outcome of the state
imposed inquiry.
In September 2017, the West Australian State Government
implemented a moratorium on fracking onshore in the state. An
independent scientific inquiry has been implemented and during the
fourth quarter of 2017, the expected conclusion date was amended
from 2018 to 2020. During this time, the Warro Project is in a shut in
and suspended state under an approved environmental management
plan.
Figure 6 - Xanadu & Warro Location Map
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.
2018 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Reserves and Resources Statement
2 Reserves and 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 2018. Unless otherwise stated, all
estimates are quoted as net WBE share.
Reserves at 30 June 2018
Alberta, Canada
Reserves at 30 June 2018 (Mbbl)
Proved Crude Oil (1P)
Mbbl
Proved and Probable
Crude Oil (2P)
Mbbl
Developed
Undeveloped
Total
81.7
112.5
194.2
103.1
223.4
326.5
Reserves Reconciliation (Mbbl)
Proved Crude Oil (1P)
Mbbl
Proved and Probable
Crude Oil (2P)
Mbbl
Reserves at 30 June 2017
Revisions and reclassifications
Additions through acquisitions
Production
Reserves at 30 June 2018
Reserves at 30 June 2018 (MMcf)
Developed
Undeveloped
Total
Reserves Reconciliation (MMcf)
Reserves at 30 June 2017
Revisions and reclassifications
Additions through acquisitions
Production
Reserves at 30 June 2018
80.7
26.8
97.5
-10.7
194.2
104.4
52.1
180.8
-10.7
326.5
Proved Natural Gas
(1P)
MMcf
Proved and Probable
Natural Gas (2P)
MMcf
4369.7
397.4
4767.1
5357.1
3083.6
8440.7
Proved Natural Gas
(1P)
MMcf
Proved and Probable
Natural Gas (2P)
MMcf
3117.7
612.9
1493.1
-456.6
4767.1
3903.5
643.4
4350.4
-456.6
8440.7
2018 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Reserves and Resources Statement
Reserves at 30 June 2018 (Mbbl)
Developed
Undeveloped
Total
Reserves Reconciliation (Mbbl)
Reserves at 30 June 2017
Revisions and reclassifications
Additions through acquisitions
Production
Reserves at 30 June 2018
Proved Natural Gas
Liquids (1P)
Mbbl
Proved and Probable
Natural Gas Liquids
(2P)
Mbbl
113
22.4
135.4
139.4
163.5
302.9
Proved Natural Gas
Liquids (1P)
Mbbl
Proved and Probable
Natural Gas Liquids
(2P)
Mbbl
60.3
6.4
72.1
-3.4
135.4
75.8
8.7
221.8
-3.4
302.9
The revisions and reclassifications to the 1P and 2P reserves is comprised primarily of revisions in forecast
performance as a result of well recompletions, drilling of new wells and pipeline construction to add stranded
production to the network.
Changes in forward price estimates, production costs and recovery rates will also dictate the need for revision and
reclassification of reserves
Contingent and Prospective Resources at 30 June 2018 – 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.
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 and Resources Statement) is based on,
and fairly represents, information and supporting documentation prepared by a qualified petroleum reserves and
resources evaluator. The Reserves and 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
2018 ANNUAL REPORT
Page | 12
WHITEBARK ENERGY LTD
Reserves and Resources Statement
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 and 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.
2018 ANNUAL REPORT
Page | 13
WHITEBARK ENERGY LTD
Directors Report
3 Directors’ Report
3.1 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
4
4
Held
4
4
4
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.
3.2 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.
3.3 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.
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.
2018 ANNUAL REPORT
Page | 14
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 45 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.
4 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.
4.1 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.
4.2 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
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;
2018 ANNUAL REPORT
Page | 15
WHITEBARK ENERGY LTD
Directors Report
•
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.
4.2.1.1 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.
4.2.1.2 Performance-linked Compensation
The Company currently has no performance based remuneration built into key management personnel remuneration
packages.
4.2.1.3 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.
4.2.1.4 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.
Directors and Key Personnel
Term of agreement
Base fee or salary
including
superannuation
Termination
benefit
Directors
Stephen Keenihan
Executive Director
Charles Morgan
Non-Executive Chairman
David Messina
Managing Director
Non-Executive Directors
On-going commencing 1 January 2017
$2,000 per day
On-going commencing 9 October 2015
$75,000pa
Term is for 2 years from 1 July 2017
$430,000pa
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.
2018 ANNUAL REPORT
Page | 16
WHITEBARK ENERGY LTD
Directors Report
5 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 2018
Executive directors
Stephen Keenihan*
David Messina
Non-Executive Directors
Charles Morgan**
Total
Salary and Fees
AUD
Cash Bonus
AUD
Superannuation
AUD
Share based
payments
AUD
Total
AUD
174,400
402,518
-
-
-
171,418 345,818
25,000 263,486 691,004
91,000
667,918
-
-
122,442 213,442
-
25,000 557,346 1,250,264
*Consists of $36,000 directors fees and $138,400 consultancy fees
**Consists of $75,000 directors fees and $16,000 consultancy fees
Value of options as
a proportion of
remuneration
50%
38%
57%
Value of options as
a proportion of
remuneration
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
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
**Consists of $36,000 directors fees and $252,620 consultancy fees
***Consists of $36,000 directors fees and $337,025 consultancy fees
****Consists of $75,000 directors fees
6 Equity Instruments
6.1 Options Granted as Compensation
The following options were granted to key management personnel during the year ended 30 June 2018:
Grant date
Exercisable
Expiry date
Exercise price
24-Jul-17
24 July 2017 to 31 May 2021
31-May-21
$0.015
Number of
options
Value of Share
Based Payments
100,000,000 $ 633,019
These options vest over a period of 1 - 3 years.
6.2 Option Holdings of Key Management Personnel (Consolidated Entity)
Details of options and rights held directly, indirectly or beneficially by key management personnel and their related
parties are as follows:
Options
Executive directors
Stephen Keenihan
David Messina
Non-Executive Directors
Charles Morgan
Total
Balance at beginning of year
01-Jul-17
Granted as
Remuneration
Net Other
Changes
Balance at end
of year
30-Jun-18
Total
Not Exercisable
- 28,000,000 - 28,000,000
- 52,000,000
52,000,000
-
28,000,000
52,000,000
14,000,000
34,666,667
- 20,000,000
-
- 100,000,000 -
20,000,000
10,000,000
100,000,000 100,000,000 58,666,667
20,000,000
2018 ANNUAL REPORT
Page | 17
WHITEBARK ENERGY LTD
Directors Report
6.3 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
Shares
Executive directors
Stephen Keenihan
David Messina
Non-Executive Directors
Charles Morgan
Total
Balance at beginning of year
01-Jul-17
Granted as
Remuneration
On Exercise of
Options
Net Other
Changes
Balance at end of
year
30-Jun-18
72,947,334
10,362,000
-
-
- -
-
-
72,947,334
10,362,000
62,100,294
145,409,628
-
-
-
-
-
-
62,100,294
145,409,628
The aggregate amounts recognised during the year relating to directors’ related parties (included in table at 5) were as
follows:
TB & S Consulting Pty Ltd (i)
Mtani Pty Ltd (ii)
Transactions value year end
30-Jun-17
30-Jun-18
Balance outstanding as at
30-Jun-18
30-Jun-17
174,400
-
174,400
288,620
373,025
661,645
70,933
-
70,933
125,867
66,187
192,054
i.
ii.
TB & S Consulting Pty Ltd is a Company associated with Mr Stephen Keenihan. The charges from TB & S Consulting are for director’s fees and
consulting fees.
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.
7
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.
8
Voting and Comments Made at the Company’s 2017 Annual General Meeting
Whitebark Energy Ltd received 95% of “yes” votes on its remuneration report for the 2017 financial year. The Company
did not receive any specific feedback at the AGM on its remuneration report.
9 Use of Remuneration Consultants
During the financial year ended 30 June 2018, 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
10 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.
2018 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Directors Report
11 Results and Dividends
The consolidated entity’s loss after tax attributable to members of the Company for the financial year ending 30 June
2018 was $5,664,449 (30 June 2017 loss: $40,074,224). No dividends have been paid or declared by the Company during
the period ended 30 June 2018.
12 Financial Position
The net assets of the consolidated entity at 30 June 2018 were $3,699,732 (30 June 2017: $7,119,635) of which
$1,090,415 (30 June 2017: $4,856,883) 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.
13 Earnings / (Loss) Per Share
The basic earnings/(loss) per share for continuing operations of the consolidated entity for the financial year ending 30
June 2018 was (0.6101) cents per share (30 June 2017: 4.7966 cents loss per share).
14 Events Subsequent to Reporting Date
On 1 August 2018 Whitebark Energy announced a renounceable entitlement offer. The offer was made to eligible
shareholders on the basis of one New Share for every two shares held on the record date. Each new share had an offer
price of 0.4 cents. Eligible shareholders were also offered one free attaching new option for every one new share
subscribed for and issued under the offer.
On 28 August 2018 the renounceable rights issue closed substantially over-subscribed. The company raised $1,980,862
(before costs) and issued 495,215,367 shares and 515,215,367 options (including 20,000,000 options issued to CPS
Capital Pty Ltd).
To accommodate some of the oversubscription the Company placed (on 31 August 2018) an additional 87,500,000 fully
paid ordinary shares at $0.004 and 87,500,000 attaching options to raise an additional $350,000 (before costs).
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.
15 Likely Developments and Expected Results
There are no likely developments of which the directors are aware which could be expected to significantly affect the
results of the Group’s operations in subsequent financial years not otherwise disclosed in the Principal Activities and
Operating and Financial Review or the Significant Events after the Balance Date sections of the Directors’ Report.
The Company continues to look for acquisition opportunities as they arise.
16 Environmental Regulations
The operations of the Group are subject to environmental regulation from two government bodies.
The Australian assets are monitored under the laws of the State of Western Australia. The Group holds various
environmental licenses issued under these laws, to regulate its exploration activities in Australia. These licenses include
conditions and regulations in relation to specifying limits on discharges into the air, surface water and groundwater,
rehabilitation of areas disturbed during the course of exploration activities and the storage of hazardous substances. All
environmental performance obligations are monitored by the board of directors and subjected from time to time to
Government agency audits and site inspections. There have been no material breaches of the Group’s licenses and all
mining and exploration activities have been undertaken in compliance with the relevant environmental regulations.
The Canadian assets are subject to regulation by the Alberta Energy Regulator (AER). The AER ensures companies are
prepared to meet their obligations at the end of a project’s life including environmental obligations.
2018 ANNUAL REPORT
Page | 19
WHITEBARK ENERGY LTD
Directors Report
17 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:
Directors
Charles Morgan
Stephen Keenihan*
David Messina
Shares
Options
62,100,294
72,947,334
10,362,000
20,000,000
28,000,000
52,000,000
* Held in the name of Stephen Leslie Keenihan & Sheridan Jay Keenihan .
18 Share Options
18.1 Options Granted to Officers of the Company
The following options have been granted to officers of the Company during the financial year:
Grant date
24-Jul-17
Exercisable
24 July 2017 to 31 May 2021
Expiry date
31-May-21
Exercise price
$0.015
Number of
options
100,000,000
No options have been granted to officers of the Company since the end of the financial year to the date of this Directors’
report.
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 2018
Expiry date
10-Jul-18
1-Apr-21
31-May-21
Exercise price
Number of
options
$0.060 1,675,000
$0.015
11,000,000
$0.015 100,000,000
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.
18.2 Shares Issued on Exercise of Options
During the financial year there were no ordinary shares issued as a result of the exercise of options.
19 Indemnification and Insurance of Officers and Auditors
19.1 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.
19.2 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, 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.
2018 ANNUAL REPORT
Page | 20
WHITEBARK ENERGY LTD
Directors Report
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.
20 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.
21 Non-Audit Services
During the year KPMG, 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.
22 Auditor’s Independence Declaration
The Auditor’s Independence Declaration is set out on page 22 and forms part of the Directors’ report for the financial
year ended 30 June 2018.
Signed in accordance with a resolution of the Directors.
Perth, 26 September 2018
David Messina
Managing Director
2018 ANNUAL REPORT
Page | 21
WHITEBARK ENERGY LTD
Auditors Independence Declaration
2018 ANNUAL REPORT
Page | 22
WHITEBARK ENERGY LTD
Independent Audit Report
2018 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Independent Audit Report
2018 ANNUAL REPORT
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WHITEBARK ENERGY LTD
Independent Audit Report
2018 ANNUAL REPORT
Page | 25
WHITEBARK ENERGY LTD
Independent Audit Report
2018 ANNUAL REPORT
Page | 26
WHITEBARK ENERGY LTD
Independent Audit Report
2018 ANNUAL REPORT
Page | 27
WHITEBARK ENERGY LTD
Independent Audit Report
2018 ANNUAL REPORT
Page | 28
WHITEBARK ENERGY LTD
Statement of Profit or Loss and Other Comprehensive Income
for the year ended 30 June 2018
Revenue
Cost of goods sold
Gross Profit
Other income
Finance income
Gain/(loss) on disposal of available-for-sale financial
assets
Profit/(loss) on disposal of assets
Gain on bargain purchase
Expenses
Administrative expenses
Finance costs
Impairment expense
Share based payment expense
Other operating 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 interest
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 loss for the period
Total comprehensive loss attributable to:
Members of the parent entity
Non-controlling interest
Loss per share
Basic and diluted (cents per share)
Continuing operations
Discontinued operations
The accompanying notes form part of these financial statements.
Notes
5
6
7
8
9
10
22
11
12
13
33
14
16
17
30-Jun-18
AUD
1,630,809
(1,613,293)
17,517
4,364
59,823
246,660
(741)
911,367
(2,479,469)
(109,055)
(1,330,642)
(588,403)
(2,395,869)
30-Jun-17
AUD
101,436
(105,886)
(4,450)
16,836
106,079
(13,242)
(31,223)
1,289,406
(1,758,750)
(74,466)
(52,055,432)
(29,455)
(744,418)
(5,664,449)
(53,299,115)
-
(5,664,449)
9,348,766
(43,950,349)
-
(5,664,449)
3,876,125
(40,074,224)
(5,664,449)
-
(5,664,449)
(40,064,362)
(9,862)
(40,074,224)
(200,000)
200,000
120,254 (48,484)
(79,746)
151,516
(5,744,195) (39,922,708)
(5,744,195) (39,912,846)
- (9,862)
(5,744,195) (39,922,708)
(0.6101)
-
(0.6101)
18
(4.7966)
(0.0012)
(4.7978)
2018 ANNUAL REPORT
Page | 29
WHITEBARK ENERGY LTD
Statement of Financial Position
as at 30 June 2018
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
19
20
21
25
23
24
26
27
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
Accumulated losses
Total equity attributable to equity holders of the Consolidated Entity
27
28
29
30
30-Jun-18
AUD
30-Jun-17
AUD
1,090,415
125,060
97,989
-
1,313,464
4,856,883
280,574
240,886
400,000
5,778,343
8,152,319
2,556,696
10,709,015
12,022,479
5,225,806
2,077,749
7,303,555
13,081,898
658,007
102,342
760,349
3,995
7,558,403
7,562,398
8,322,747
3,699,732
651,783
65,480
717,263
37,132
5,207,868
5,245,000
5,962,263
7,119,635
54,382,657
756,926
(51,439,851)
3,699,732
52,646,771
1,629,955
(47,157,091)
7,119,635
The accompanying notes form part of these financial statements.
2018 ANNUAL REPORT
Page | 30
-
-
-
-
-
-
-
-
-
-
-
(5,664,449)
46,600
(246,600)
120,255
120,255
(5,744,195)
-
1,735,886
588,403
2,324,289
3,699,732
Total Equity
AUD
50,960,471
-
(40,064,362)
(9,862)
WHITEBARK ENERGY LTD
Statement of Changes in Equity
for the year ended 30 June 2018
Share based
payments
reserve
Available-for-
sale reserve
Accumulated
Losses
Non-
controlling
interest
Total Equity
AUD
96,822
AUD
200,000
AUD
(47,157,091)
AUD
-
AUD
7,119,635
Foreign
currency
translation
reserve
AUD
1,333,133
-
-
-
120,255
120,255
120,255
AUD
52,646,771
-
-
-
-
-
-
-
-
-
-
-
-
-
46,600
(246,600)
-
(200,000)
(200,000)
(5,664,449)
-
-
-
-
(5,664,449)
-
1,735,886
-
1,735,886
54,382,657
(1,381,687)
-
-
(1,381,687)
71,702
-
-
588,403
588,403
685,224
-
-
-
-
-
1,381,687
-
-
1,381,687
(51,439,851)
For the year ended 30 June 2018
Share Capital
Balance at 1 July 2017
Total comprehensive income for the period
Loss attributable to members of the parent entity
Revaluation of marketable securities
Gain on marketable securities
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
Transfer relating to disposal of subsidiaries
Net proceeds from share issue
Share option expense
Total contributions by and distributions to owners
Balance at 30 June 2018
For the year ended 30 June 2017
Share Capital
Balance at 1 July 2016
Total comprehensive income for the period
Loss 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
Disposal of Non-controlling interest
Share options vested
Gain on marketable securities
Total contributions by and distributions to owners
Balance at 30 June 2017
Foreign
currency
translation
reserve
AUD
1,381,617
-
-
(48,484)
(48,484)
(48,484)
AUD
52,646,771
-
-
-
-
-
Share based
payments
reserve
Available-for-
sale reserve
Accumulated
Losses
Non-
controlling
interest
AUD
67,367
AUD
-
AUD
(7,092,729)
AUD
3,957,445
-
-
-
-
-
-
-
-
-
-
(40,064,362)
-
-
(9,862)
-
-
(40,064,362)
-
-
(9,862)
(48,484)
(48,484)
(40,122,708)
-
-
-
-
52,646,771
-
-
-
-
1,333,133
-
29,455
-
29,455
96,822
-
-
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
The accompanying notes form part of these financial statements.
2018 ANNUAL REPORT
Page | 31
WHITEBARK ENERGY LTD
Statement of Cash Flows
for the year ended 30 June 2018
Note
30-Jun-18
AUD
30-Jun-17
AUD
Cash flows from operating activities
Receipts from customers
Interest received
Receipt for Research and Development Rebate
Payment for production
Payment to suppliers and employees
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Proceeds from sale of plant and equipment
Proceeds from sale of undeveloped land
Proceeds from sale of securities
Proceeds from deed of termination (Warro JV)
Payment for securites
Cash disposed of on loss of control of subsidiary
Acquisition of interest in joint operation
Payment for plant and equipment
Payment for development
Payment for exploration assets
Net cash used in investing activities
Cash flows from financing activities
Proceeds from share placement
Proceeds from repayment of borrowings
Net cash from financing activities
Net increase/ (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Effect of movement in exchange rates on cash held
Cash and cash equivalents at 30 June 2018
31
22
1,372,923
86,670
-
(1,176,230)
(2,789,387)
(2,506,024)
13,832
197,393
446,660
48,692
-
-
(341,997)
(85,969)
(1,786,073)
(1,538,888)
(3,046,350)
1,735,886
7,000
1,742,886
(3,809,488)
4,856,883
43,020
1,090,415
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
The accompanying notes form part of these financial statements.
2018 ANNUAL REPORT
Page | 32
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
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 2018 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 26 September 2018.
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 $5,664,449 for the year ended 30 June 2018 (2017: loss of
$40,074,224). Included within this loss was the exploration and development expenditure write off or impairment of
$1,157,845 (2017 $48,670,684) and the property, plant and equipment write off or impairment of $172,797 (2017:
$3,384,748). The net working capital surplus of the Consolidated Entity at 30 June 2018 was $553,115 (2017: surplus of
$5,061,080) and the net decrease in cash held during the year was $3,766,468 (2017: increase of $1,535,069).
The Group has raised $2.1m in August 2018. The funds will be used to continue the Group’s growth strategy in Canada,
including new well and facility upgrades.
Whilst not immediately required, the Group may need to raise additional funds to meet its ongoing obligations and
subject to the results of its ongoing exploration activities, expand or accelerate its work programs. Additional sources
of funding available to the Group include capital raising from new or existing shareholders, or through farm- in or similar
arrangements.
If necessary the Group can delay exploration expenditures and directors can also institute cost saving measures to
further reduce corporate and administrative costs or explore divestment opportunities.
The Directors have reviewed the Group’s overall financial position and are of the opinion that the use of the going
concern basis of accounting is appropriate as they believe the Group has sufficient funds available for at least 12 months
and when required will be able to raise further funding.
(c) Basis of measurement
The financial report is prepared on the historical costs basis except for the following assets and liabilities that 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.
2018 ANNUAL REPORT
Page | 33
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
(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
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 estimated 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 23 and 24 – Impairment expense (see note 3(k))
Note 27 – Provisions (see note 3(r))
Note 33 – Share-based payment (see note 3(q)(iii))
Note 24 – Exploration and evaluation expenditure (see note 3(d))
(f) New and revised standards that are effective for these financial statements
A number of new and revised standards were effective for the annual period beginning on or after 1 July 2017.
When these Standards were first adopted for the year ending 30 June 2018, 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 2018.
The Parent controls a subsidiary if it is exposed, or has rights, to variable returns from its involvement with the subsidiary
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.
(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.
2018 ANNUAL REPORT
Page | 34
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
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
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 of non-financial assets note 3(k)). 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.
2018 ANNUAL REPORT
Page | 35
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
• 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 future 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.
(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) Trade and other receivables
Other receivables are recorded at amounts due less any allowance for doubtful debts.
2018 ANNUAL REPORT
Page | 36
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
(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 (excluding exploration and evaluation 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.
Impairment losses recognised in respect of cash-generating units are allocated to reduce the carrying amount of the
assets in the unit (group of units) on a pro rata basis.
Reversals of impairment
Impairment losses 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.
(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 38). 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 when it is probable
that future economic benefits associated with the item will flow to the group and the cost of the item can be measured
reliably. All other costs are recognised in expenses as incurred. Such capitalised oil and gas interests generally represent
2018 ANNUAL REPORT
Page | 37
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
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 as an expense.
(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:
•
IT equipment: 4 years
• Other equipment: 4-5 years
In the case of leasehold property, expected useful lives are determined by reference to the lesser of comparable owned
assets useful lives and the lease term.
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.
(p) Fair value measurement
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending
on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an orderly
(i.e. unforced) transaction between independent, knowledgeable and willing market participants at the measurement
date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used to
determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific
asset or liability. The fair values of assets and liabilities that are not traded in an active market are determined using one
or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable
market data.
To the extent possible, market information is extracted from either the principal market for the asset or liability (i.e. the
market with the greatest volume and level of activity for the asset or liability) or, in the absence of such a market, the
most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the
receipts from the sale of the asset or minimises the payments made to transfer the liability, after taking into account
transaction costs and transport costs).
For non-financial assets, the fair value measurement also takes into account a market participant’s ability to use the
asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and
best use
The fair value of liabilities and the entity’s own equity instruments (excluding those related to share-based payment
arrangements) may be valued, where there is no observable market price in relation to the transfer of such financial
instruments, by reference to observable market information where such instruments are held as assets. Where this
2018 ANNUAL REPORT
Page | 38
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
information is not available, other valuation techniques are adopted and, where significant, are detailed in the
respective note to the financial statements.
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises fair value
measurements into one of three possible levels based on the lowest level that an input that is significant to the
measurement can be categorised into as follows:
Level 1 – Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date.
Level 2 – Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset
or liability, either directly or indirectly.
Level 3 – Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or more
valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.
If all significant inputs required to measure fair value are observable, the asset or liability is included in Level 2. If one
or more significant inputs are not based on observable market date, the asset or liability is included in Level 3.
The Group would change the categorisation within the fair value hierarchy only in the following circumstances:
If a market that was previously considered active (Lvel 1) became inactive (Level 2 or Level 3) or vice versa; or
(i)
(ii) If significant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice versa.
When a change in the categorisation occurs, the Group recognises transfers between levels of the fair value hierarchy
(ie transfers into and out of each level of the fair value hierarchy) on the date the event or change in circumstances
occurred.
(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
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.
2018 ANNUAL REPORT
Page | 39
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
(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. Revenue is measured at the fair value of the consideration received or receivable, net of
returns, trade allowances and duties and taxes paid.
(i) Net financial income
Net financial income comprises interest 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 buyer, 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
The Company and its wholly-owned Australian resident entities are part of a tax-consolidated group. As a consequence,
all members of the tax-consolidated group are taxed as a single entity. The head entity within the tax-consolidated
group is Whitebark Energy Ltd.
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.
2018 ANNUAL REPORT
Page | 40
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
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 in the income statement 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 2018 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.
2018 ANNUAL REPORT
Page | 41
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
Financial Liabilities
Non-derivative financial liabilities are subsequently measured at amortised cost.
(iii) 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’.
(iv) 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.
(v) 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)
Interest in other entities
Under AASB 11 Joint Arrangements, investments in joint arrangements are classified as either joint operations or joint
ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal
structure of the joint arrangement. A joint operation is a joint arrangement in which the parties with joint control have
rights to the assets and obligations for the liabilities relating to that arrangement.
The Group recognises its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of
any jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the financial
statements under the appropriate headings.
(z) 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 2018, but have not been
applied in preparing this financial report.
2018 ANNUAL REPORT
Page | 42
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
• AASB 9 Financial Instruments and the relevant amending standards (December 2014) (applicable for annual
reporting periods commencing on or after 1 July 2018).
This standard introduces a single approach to determine whether a financial asset is measured at amortized cost
or fair value and replaces the multiple rules in IAS 39. The approach is based on how an entity manages its financial
instruments in the context of its business model and the contractual cash flow characteristics of the financial assets.
For financial liabilities, AASB 9 retains most of the IAS 39 requirements; however, where the fair value option is
applied to financial liabilities, the change in fair value resulting from an entity’s own credit risk is recorded in other
comprehensive income instead of net earnings, unless this creates an accounting mismatch. In addition, a new
expected credit loss model for calculating impairment on financial assets replaces the incurred loss impairment
model used in IAS 39. The new model results in more timely recognition of expected credit losses. AASB 9 also
includes a simplified hedge accounting model, aligning hedge accounting more closely with risk management.
Whitebark Energy does not currently apply hedge accounting. The adoption of AASB 9 will not require any material
adjustments to the Company’s financial statements.
• AASB 16 Leases (applicable for annual reporting periods commencing on or after 1 July 2019).
This standard requires entities to recognize lease assets and lease obligations on the statement of financial position.
For lessees, AASB 16 removes the classification of leases as either operating leases or finance leases, effectively
treating all leases as finance leases. Certain short-term leases (less than 12 months) and leases of low value assets
are exempt from the requirements, and may continue to be treated as operating leases. Classification will
determine how and when a lessor will recognize lease revenue, and what assets would be recorded. The company
is currently party to only short term leases. Based on this fact the amendments are not expected to have an impact
on the transactions and balances recognised in the financial statements on first adoption.
• AASB 15 Revenue from Contracts with Customers (applicable for annual reporting periods commencing on or after
1 July 2018).
This standard establishes a single revenue recognition framework that applies to contracts with customers. The
standard requires an entity to recognize revenue to reflect the transfer of goods and services for the amount it
expects to receive, when control is transferred to the purchaser. Expanded disclosure requirements are also part
of the standard. The standard is required to be either adopted retrospectively in full or using a modified approach
where prior numbers remain and the retrospective effect is an adjustment to retained earnings. It is expected that
the standard will have no impact on the opening retained earnings/(accumulated loss), however there will be
additional disclosures required in the Revenue note. The standard will result in a change in presentation between
processing income and operating expenses with no impact on earnings.
2018 ANNUAL REPORT
Page | 43
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
4 Segment reporting
During the period the group operated in two business segments (two geographical areas) – exploration, development
and production of oil and gas – Australia and Canada.
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.
2018
Revenue
Sales to external customers
Total Sales Revenue
Financial income
Other income
Total Revenue
Segment result
Depletion, 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
2017
Revenue
Sales to external customers
Total Sales Revenue
Financial income
Other income
Total Revenue
Segment result
Depletion, 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-18
-
-
38,290
4,364
42,654
(3,467,409)
(17,156)
-
(3,484,565)
1,076,805
1,660,290
2,737,095
(335,802)
(1,298,753)
(1,634,555)
Canada
30-Jun-18
Total Segment
30-Jun-18
Unallocated
30-Jun-18
Consolidated
30-Jun-18
1,630,809
1,630,809
21,533
-
1,652,343
(82,028)
(764,462)
(1,330,642)
(2,177,131)
1,630,809
1,630,809
59,823
4,364
1,694,997
(3,549,437)
(781,618)
(1,330,642)
(5,661,696)
236,659
9,048,725
9,285,384
1,313,464
10,709,015
12,022,479
(424,547)
(6,263,645)
(6,688,192)
(760,349)
(7,562,398)
(8,322,747)
-
-
-
-
-
(2,753)
-
-
(2,753)
-
-
-
-
-
-
1,630,809
1,630,809
59,823
4,364
1,694,997
(3,552,190)
(781,618)
(1,330,642)
(5,664,449)
-
(5,664,449)
1,313,464
10,709,015
12,022,479
(760,349)
(7,562,398)
(8,322,747)
Australia
30-Jun-17
Canada
30-Jun-17
Discontinued
30-Jun-17
Total Segment
30-Jun-17
Unallocated
30-Jun-17
Consolidated
30-Jun-17
-
-
103,312
16,836
120,148
1,089,877
(24,917)
(52,123,882)
(51,058,922)
101,436
101,436
-
-
101,436
(2,235,670)
-
-
(2,235,670)
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)
-
-
-
-
-
(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)
Australia
30-Jun-17
Canada
30-Jun-17
Discontinued
30-Jun-17
Total Segment
30-Jun-17
Unallocated
30-Jun-17
Consolidated
30-Jun-17
5,582,943
1,350,288
6,933,231
(448,185)
(42,445)
(490,630)
195,400
5,953,267
6,148,667
(269,078)
(5,202,555)
(5,471,633)
-
-
-
-
-
-
5,778,343
7,303,555
13,081,898
(717,263)
(5,245,000)
(5,962,263)
-
-
-
-
-
-
5,778,343
7,303,555
13,081,898
(717,263)
(5,245,000)
(5,962,263)
The Canada column discloses the companies proportionate share of all assets and liabilities held in the unincorportated PLJV.
5 Revenue from continuing operations
Product sales
Royalties
2018 ANNUAL REPORT
30-Jun-18
AUD
(1,950,312)
319,502
(1,630,809)
30-Jun-17
AUD
101,436
-
101,436
Page | 44
6 Cost of goods and services sold
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
Production expenditure
7 Other income
Indirect overhead
8 Finance income
Interest income
Unrealised commodity gain
Foreign currency gain
9 Loss on disposal of available-for-sale financial assets
Loss on disposal of financial assets - Carnaby Energy Limited
Gain on disposal of financial assets - Norwest Energy Limited
10 Profit/ (loss) on disposal of assets
Loss on write off of depreciable assets - Latent Petroleum Pty Ltd
Loss on disposal of motor vehicle - Latent Petroleum Pty Ltd
11 Administration expenses
Directors' fees
Administration and finance support
General and administration
30-Jun-18
AUD
(1,613,293)
(1,613,293)
30-Jun-17
AUD
(105,886)
(105,886)
30-Jun-18
AUD
30-Jun-17
AUD
4,364
4,364
16,836
16,836
30-Jun-18
AUD
30-Jun-17
AUD
38,299
11,907
9,617
59,823
105,718
-
361
106,079
30-Jun-18
AUD
30-Jun-17
AUD
-
246,660
246,660
(13,242)
-
(13,242)
30-Jun-18
AUD
30-Jun-17
AUD
-
(741)
(741)
(31,223)
-
(31,223)
30-Jun-18
AUD
30-Jun-17
AUD
(111,000)
(819,407)
(1,549,062)
(2,479,469)
(148,184)
(415,942)
(1,194,624)
(1,758,750)
2018 ANNUAL REPORT
Page | 45
12 Finance costs
Interest expense
Decommissioning liabilities - accretion
Establishment fee - facility
13 Impairment expenses
Impairment - Warro Joint Venture
Impairment - Canadian assets
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
30-Jun-18
AUD
30-Jun-17
AUD
(71)
(108,984)
-
(109,055)
(403)
-
(74,063)
(74,466)
30-Jun-18
AUD
-
(1,330,642)
(1,330,642)
30-Jun-17
AUD
(48,670,684)
(3,384,748)
(52,055,432)
In determining our impairment position of the Canadian assets the Company evaluated its developed and producing
CGUs and its exploration and evaluation assets for indicators of impairment. The developed and producing CGUs consist
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 $172,797 has been charged in
relation to the developed and producing assets. The exploration and evaluation assets recoverability is dependent on
the successful development and commercial exploitation or sale of the respective areas of interest. An impairment
amount of $1,157,845 has been charged in relation to exploration and evaluation assets. This amount is in relation to
capital costs associated with leases that expired or were relinquished up to 30 June 2018 where no future exploration
or development was anticipated (Refer notes 23 and 24).
For the year ended 30 June 2017 the Company determined its impairment position and the appropriateness of
continuing to carry forward costs in relation to the Warro Project by considering the then 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 was
considered prudent that the Company make an impairment charge of $48,670,684 in the 30 June 2017 year.
In determining the impairment position of the Canadian assets for the year ended 30 June 2017 the Company evaluated
its developed and producing CGU for indicators of impairment. The developed and producing CGU consisted of
production facilities, wells, land and associated reserves. The recoverable amount of the CGU’s had been established
by reference to an independently prepared Reserve Report. An impairment amount of $3,384,748 was charged in
relation to the developed and producing assets for the year ended 30 June 2017.
14 Other expenses
Depletion, depreciation and amortisation
Project costs
Legal fees
Tax advisory services
Consultancy fees
Bad debt expense
Revision of Rehab and Abandonment provision
Workover expense
30-Jun-18
AUD
30-Jun-17
AUD
(781,618)
(485)
(91,137)
(11,030)
(163,532)
-
(1,244,767)
(103,300)
(2,395,869)
(24,917)
(340,430)
(26,504)
(254,050)
(74,574)
(23,943)
-
-
(744,418)
2018 ANNUAL REPORT
Page | 46
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
15 Auditor remuneration
Audit and review of financial statements
-auditors of Whitebark Energy Limited - Grant Thornton Australia
Remuneration for audit and review of financial statements
-auditors of Whitebark Energy Limited - KPMG
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
-auditors of Whitebark Energy Limited - KPMG
-Legal advice
16 Income tax benefit
Current income tax expense/(benefit)
Aggregate income tax expense/(benefit)
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 27.5%
Adjustment for tax rate difference (Canada 25%)
Tax effect amounts which are not deductible/(taxable)
in calculating taxable income:
Share-based payments
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
Research and development tax offset
Income tax benefit
30-Jun-18
AUD
30-Jun-17
AUD
(42,025)
(72,773)
(50,738)
-
-
-
-
(60,000)
(152,763)
(9,550)
(1,950)
(2,000)
-
(86,273)
30-Jun-18
AUD
30-Jun-17
AUD
(9,348,766)
(9,348,766)
-
-
(5,664,448)
(1,557,723)
54,428
(1,503,295)
(49,422,991)
(13,591,322)
56,623
(13,534,699)
161,811
-
-
1,827
8,100
(1,075,721)
12,754,570
67,831
(1,339,657)
(1,779,919)
862,849
648,219
(67,475)
(103,936)
-
809,302
176,585
361,247
432,785
(9,348,766)
-
(9,348,766)
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.
2018 ANNUAL REPORT
Page | 47
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
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 assets - capital losses
Deferred tax liabilities - temporary differences
Net deferred tax asset
503,234
6,902,177
3,642
(423,087)
6,985,966
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
1,566,236
815,907
-
(958,785)
1,423,358
1,301,967
167,688
-
(868,998)
600,657
During the year ended 30 June 2017, a Research and Development tax incentive of $9.3 million was recorded in relation
to the Warro Project.
17 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.
Results of the discontinued operations for the period:
Revenue
Expenses
Loss before tax
Attributable income tax benefit
Gain on sale of discontinued operations
Profit for the year from 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
Non-controlling interest of Carnaby Energy Limited
Gain on sale of discontinued operation
30-Jun-18
AUD
30-Jun-17
AUD
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,728
(38,224)
(29,496)
-
(29,496)
3,905,621
3,876,125
68,599
-
68,599
30-Jun-16
(125,851)
(292)
90,561
(35,582)
3,941,203
3,905,621
2018 ANNUAL REPORT
Page | 48
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
18 Earnings/(loss) per share
The calculation of basic loss per share at 30 June 2018 of 0.6101 cents per share (30 June 2017 basic loss: 4.7978 cents
per share) was based on the loss attributable to the ordinary shareholders of $5,664,449 (30 June 2017 loss:
$40,074,224) and a weighted average number of ordinary shares outstanding during the year ended 30 June 2018 of
928,383,515 (30 June 2017: 835,264,337 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-18
AUD
30-Jun-17
AUD
(5,664,449)
(40,074,224)
(5,664,449)
-
(40,064,362)
(9,862)
835,264,337
93,119,178
928,383,515
(0.6101)
(0.6101)
-
(0.6101)
835,264,337
-
835,264,337
(4.7978)
(4.7966)
(0.0012)
(4.7978)
112,675,000 options (refer Note 33) are not included in calculating diluted EPS because the effect is anti-dilutive.
19 Cash and cash equivalents
Cash at bank
Term deposits
30-Jun-18
AUD
1,030,142
60,273
1,090,415
30-Jun-17
AUD
816,883
4,040,000
4,856,883
Effective interest rates were 2.5% - 2.75% and average maturity was 45 days.
20 Trade and other receivables
Trade and other receivables
30-Jun-18
AUD
125,060
125,060
30-Jun-17
AUD
280,574
280,574
All amounts are short term. The net carrying value of trade receivables is considered a reasonable approximation of
fair value.
21 Other current assets
Prepayments
30-Jun-18
AUD
97,989
97,989
30-Jun-17
AUD
240,886
240,886
2018 ANNUAL REPORT
Page | 49
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
22 Business Combination
On 30th April 2018 Whitebark Energy Ltd acquired a 30% working interest in certain oil and gas properties located in
Alberta, Canada, for cash consideration of $328,266CAD. The purchase was accounted for using the acquisition method
of accounting under IFRS 3 – Business Combinations, whereby, the net assets acquired and the liabilities assumed are
recorded at fair value as follows:
Costs associated with the acquisition of the 30% 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 production
facilities and producing wells
Exploration and evaluation
Decommissioning obligations assumed
23
24
28
Cash paid to Vendor by Whitebark Energy Limited
Gain on bargain purchase
30-Jun-18
AUD
1,621,004
57,476
(425,116)
1,253,364
341,997
911,367
The above amounts of identifiable assets acquired and liabilities assumed have been determined from information
currently available to management of the Company and incorporates estimates, which may be subject to adjustment.
The discount rate used to calculate the decommissioning obligations assumed at acquisition date is the market rate of
14%.
The acquired net assets contributed petroleum and natural gas revenues of $150,000 and operating profit of $19,000
since 30 April 2018. Had the acquisition closed on 1 July 2017 Whitebark’s estimated petroleum revenue would have
increased by approximately $770,000 and operating income would have increased by approximately $340,000.
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%.
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
23
24
28
Cash paid to Vendor by Whitebark Energy Limited
30-Jun-17
AUD
5,638,548
1,900,117
(2,224,972)
5,313,693
4,024,287
1,289,406
Gain on bargain purchase
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 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 for the year to 30 June
2017 would have been approximately $1,370,000 and operating income would have increased by approximately
$305,000.
2018 ANNUAL REPORT
Page | 50
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
23 Property, plant and equipment
Plant and equipment at cost
Less: accumulated depletion and depreciation
Impairment
Property, plant and equipment
Reconciliation of carrying amounts
Developed and Producing
Opening balance
Acquisition though business combination
Asset retirement obligation asset
Additions
Foreign exchange
Disposal
Impairment
Depletion
Land and buildings
Opening balance
Disposal
Depreciation expense
Furniture and Fixtures
Opening balance
Disposal
Additions
Depreciation expense
Office equipment
Opening balance
Additions
Disposal
Depreciation expense
Software Assets
Opening balance
Depreciation expense
Motor vehicles
Opening balance
Disposal
Depreciation expense
30-Jun-18
AUD
12,541,168
(835,619)
(3,553,230)
8,152,319
30-Jun-17
AUD
8,765,220
(64,078)
(3,475,336)
5,225,806
5,177,307
1,621,004
450,566
1,795,901
214,804
(183,188)
(173,984)
(766,944)
8,135,465
-
5,638,548
2,982,896
35,542
(767)
-
(3,475,336)
(3,576)
5,177,307
-
-
-
-
301
-
1,377
(60)
1,618
10,116
816
-
(3,872)
7,060
22,612
(14,436)
8,176
15,470
(13,832)
(1,638)
-
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
8,152,319
5,225,806
2018 ANNUAL REPORT
Page | 51
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
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 25% for the Thornbury CGU and 20% for the Mannville CGU. The
following table outlines the forecast benchmark commodity prices used in the impairment calculation of property, plant
and equipment at 30 June 2018. 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.
Edmonton Llight Crude Oil ($C/bbl)
Edmonton Cond & Natural Gasolines ($/bbl)
Alberta AECO Spot Price ($C/MMBtu)
2018 (6 months)
84.80
88.80
1.90
2019
79.30
82.40
2.30
2020
79.30
82.40
2.75
2021
80.60
83.80
3.10
2022
82.90
86.10
3.25
2023
84.50
87.80
3.30
2024
86.20
89.60
3.35
2025
87.90
91.30
3.45
2026
89.70
93.20
3.45
2027
91.60
95.20
3.55
2028
93.40
97.10
3.60
2029
95.20
98.90
3.70
The impairment test of property, plant and equipment at 30 June 2018 concluded that the estimated recoverable
amount was lower than the carrying amount of the Thornbury/Portage CGU. As such, property, plant and equipment
impairment existed for this CGU only.
Carrying value at 30 June 2018
Less: Impairment
Recoverable amount at 30 June 2018
6,863,047
-
6,863,047
1,463,255
(173,984)
1,289,271
Mannville
Thornbury/Portage
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 2018 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.
2018 ANNUAL REPORT
Page | 52
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
24 Exploration and evaluation expenditure
Exploration and evaluation assets
Movement in exploration and evaluation expenditure
Opening Balance
Acquisition through business combination
Additions - Canada
Additions - Warro Joint Venture
Expenditure incurred during the period
Depreciation/amortisation for exploration assets
Impairment for exploration and evaluation assets
Disposal during the year
Transfer to Property plant and equipment
Foreign currency movement
30-Jun-18
AUD
2,556,696
30-Jun-17
AUD
2,077,749
2,077,749
57,476
199,946
-
1,338,779
-
(1,157,496)
(14,205)
(9,828)
64,275
2,556,696
48,012,854
1,900,117
-
665,660
177,632
(7,830)
(48,670,684)
-
-
-
2,077,749
The ultimate recoverability of the value of exploration and evaluation assets is dependent on successful development
and commercial exploitation, or alternatively, sale, of the underlying areas of interest.
The Group undertakes at each reporting date, a review for indicators of impairment of these assets. Should an indicator
of impairment exist, there is significant estimation and judgments in determining the inputs and assumptions used in
determining the recoverable amounts.
The key areas of estimation and judgement that are considered in this review included:
•
•
•
•
Recent drilling results and reserves/resource estimates;
Environmental issues that may impact the underlying tenements;
The estimated market value of assets at the review date;
Independent valuations of underlying assets that may be available;
Fundamental economic factors such as prices, exchange rates and current and anticipated operating cost in
•
the industry; and
•
The group’s market capitalisation compared to its net assets.
Information used in the review process is rigorously tested to externally available information as appropriate.
Changes in these estimates and assumptions as new information about the presence or recoverability of a reserve
becomes available, may impact the assessment of the recoverable amount of exploration and evaluation assets. If, after
having capitalised the expenditure a judgement is made that recovery of the expenditure is unlikely, an impairment loss
is recorded in the profit or loss in accordance with accounting policy 3(d).
Warro Joint Venture
During the year ended 30 June 2017 the company underwent a review of the impairment position of the Warro Project.
As a result of this review the Company made an impairment charge of $48,670,684 in June 2017.
25 Assets classified as available-for-sale
Available-for-sale financial assets:
Listed equity securities
30-Jun-18
AUD
30-Jun-17
AUD
-
-
400,000
400,000
2018 ANNUAL REPORT
Page | 53
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
26 Trade and other payables
Current:
Trade creditors
Other payables
Total trade and other payables
30-Jun-18
AUD
30-Jun-17
AUD
404,937
253,070
658,007
93,136
558,647
651,783
All amounts are short-term. The carrying value of trade payables and other payables are considered to be a reasonable
approximation of fair value.
27 Provisions
Current Provisions:
Annual leave
Long service leave
Non-Current Provisions:
Annual leave
Long service leave
28 Decommissioning liabilities
Balance at the beginning of the year
Liabilities acquired - Canada
Change in discount rate of liabilities acquired - Canada
Liability acquired - Warro Project
Change in discount rate of liabilities to 2.1% (2017 2%)
Revision of estimates
Accretion expense
Expenditure
Foreign currency movement
Balance at the end of the year
30-Jun-18
AUD
30-Jun-17
AUD
61,824
40,518
102,342
-
3,995
3,995
106,337
30-Jun-18
AUD
5,207,868
425,116
534,734
1,293,459
(56,188)
(27,981)
109,305
(100,436)
172,525
7,558,403
44,856
20,624
65,480
24,114
13,018
37,132
102,612
30-Jun-17
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 $7,558,403 as at 30 June 2018 (2017: $5,207,868) based on an
undiscounted total future liability of $9,841,593 (2017: $6,631,025). 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 where there is a future
economic benefit associated with the asset. 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 2.1% for the Canadian obligation and 3.0% for the Australian obligation (2017: 2.0%) and the inflation rate is
2.0% for both Canadian and Australian obligations (2017: 2.0%) per annum.
2018 ANNUAL REPORT
Page | 54
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
The liability acquired in relation to the Warro Project comprises amounts related to the Warro field. The provision arose
in the 2018 financial year as a result of Alcoa withdrawing from the Joint Venture under which they were to satisfy the
full obligation. The provision represents the present value of the Directors’ best estimate of the future sacrifice of
economic benefits that will be required to restore and abandon the site. The estimated future obligation includes the
costs of abandoning wells and restoring the affected areas.
29 Issued capital
Ordinary Shares
30-Jun-18
AUD
54,382,657
30-Jun-17
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 2018
Ordinary shares
Opening balance
Issue of shares for cash
Closing balance
Less share issue costs:
Opening balance
Current period costs
Share issue costs at the end of the year
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
30 Reserves
Share based payments reserve
Available for sale reserve
Foreign currency translation reserve
Balance at 1 July 2017
Exchange differences on translating foreign operations
Transfer relating to disposal of subsidiaries
Revaluation of marketable securities
Gain on marketable securities
Share options vested
Balance at 30 June 2018
2018 ANNUAL REPORT
AUD
53,757,488
1,862,000
55,619,488
(1,110,717)
(126,114)
(1,236,831)
54,382,657
AUD
53,757,488
53,757,488
(1,110,717)
(1,110,717)
52,646,771
Issue price
Number of shares
835,264,337
155,166,667
990,431,004
Number of shares
835,264,337
835,264,337
Issue price
30-Jun-18
AUD
30-Jun-17
AUD
685,224
-
71,702
756,926
96,822
200,000
1,333,133
1,629,955
Foreign currency
translation
reserve
AUD
1,333,133
120,256
(1,381,687)
-
-
71,702
Share based
payments reserve
AUD
Available for
sale reserve
AUD
96,822
200,000
-
-
-
588,402
685,224
-
-
46,600
(246,600)
-
-
Page | 55
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
Share based payments reserve
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.
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 Reconciliation of cash flow from operating activities
Cash flows used in operating activities
Profit/(loss) for the period
Adjustments for:
Depreciation, depletion and amortisation expense
Accretion expense
Gain on disposal of available for sale financial assets
Profit on disposal of assets
Gain on discount purchase
Profit from discontinued operations (refer note 31)
Impairment expense
Revision of provision for rehabilitation and abandonment -
Warro
Bad debt expense
Unrealised commodity gain
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
(Increase)/Decrease in other receivables and prepayments
Increase in trade and other payables
Net cash provided/(used in) operating activities
32 Related Party Transactions
30-Jun-18
AUD
30-Jun-17
AUD
(5,664,449)
(40,074,224)
781,618
108,984
(246,660)
741
(911,757)
-
1,331,480
1,244,767
-
(11,907)
-
(31,880)
588,403
(2,810,660)
298,411
6,225
(2,506,024)
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
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
Share based payments
30-Jun-17
AUD
(667,918)
(25,000)
(557,346)
(1,250,264)
30-Jun-17
AUD
(1,017,461)
(15,000)
-
(1,032,461)
The aggregate amounts recognised during the year relating to directors’ related parties and other related parties were
as follows:
2018 ANNUAL REPORT
Page | 56
TB & S Consulting Pty Ltd (i)
Mtani Pty Ltd (ii)
Westranch Holdings Pty Ltd (iii)
Point Loma Resources Limited (iv)
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
Transactions value year end
30-Jun-17
30-Jun-18
Balance outstanding as at
30-Jun-17
30-Jun-18
174,400
-
1,338,120
2,499,158
4,011,678
288,620
373,025
152,632
164,870
979,147
70,933
-
-
153,608
224,541
125,867
66,187
-
(5,300)
186,754
i.
TB & S Consulting Pty Ltd is a Company associated with Mr Stephen Keenihan. The charges from TB & S Consulting
were for directors’ fees and consultancy fees.
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.
iii. Westranch Holdings Pty Ltd is the operator of the TP15 Joint Venture
iv.
Point Loma Resources Limited is the operator of the PLJV (Canada)
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.
33 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
Expired during the year
No. 2018
12,675,000
100,000,000
-
-
-
112,675,000
WAEP 2018
No. 2017
WAEP 2017
0.015
0.015
-
-
-
0.015
1,675,000
11,000,000
-
-
-
12,675,000
0.06
0.015
-
-
-
0.021
The number of options vested and exercisable as at 30 June 2018 was 50,341,669 (2017: 5,341,668).
The related party options granted during the year vest over a 3 year period. During the year 41,333,333 of the
100,000,000 options granted have vested.
The outstanding balance of options over ordinary shares as at 30 June 2018 represented by:
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
1-Apr-21
31-May-21
Exercise price
Number of
options
Value of share
based payments
$0.060 1,675,000 67,367
70,191
$0.015
11,000,000
633,019
$0.015 100,000,000
The outstanding balance of options over ordinary shares as at 30 June 2017 represented by:
Grant date
17-Nov-15
28-Apr-17
Exercisable
17 November 2015
28 April 2017 to 1 April 2021
Expiry date
10-Jul-18
1-Apr-21
Exercise price
Number of
options
Value of share
based payments
$0.060 1,675,000 67,367
70,191
$0.015
11,000,000
The weighted average remaining contractual life for the share options outstanding as at 30 June 2018 is three years.
The exercise price for options outstanding at the end of the year is 1,675,000 at A$0.060 (2017: A$0.06) and 111,000,000
at A$0.015 (2017: 11,000,000 at A$0.015).
Fair value of options granted
Options granted during the year ended 30 June 2018; the fair value per option of options granted during the financial
year was $0.015 with a weighted average of $0.015. The fair value at grant date is determined using the binomial and
Black Scholes method of valuing options that takes into account the exercise price, the term of the option, the impact
2018 ANNUAL REPORT
Page | 57
of dilution, the share price at grant date and expected volatility of the underlying share, the expected dividend yield and
the risk free interest rate for the term of the option.
The following table lists the inputs to the model used for valuation of options:
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
Inputs to the model used for valuation of options:
Dividend yield (%)
Expected volatility (%)
Risk-free interest rate (%)
Expected life of option (year)
Option exercise price ($)
Underlying share price
1.5c Options
Nil
119%
1.96%
3.85
$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 $588,403 (2017: $29,455).
34 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
Accumulated losses
Total Equity
Results of Parent Entity for the year ended 30 June 2018
Profit/(Loss) for the year
Other comprehensive income
Total comprehensive income
30-Jun-18
AUD
908,926
2,981,625
3,890,551
190,819
-
190,819
30-Jun-17
AUD
4,563,918
425,000
4,988,918
335,063
-
335,063
3,699,732
4,653,855
54,382,657
685,224
-
(51,368,149)
3,699,732
52,646,771
96,822
200,000
(48,289,738)
4,653,855
(1,270,651)
(200,000)
(1,470,651)
(38,840,077)
200,000
(38,640,077)
The Company has no contingent liabilities or commitments and no guarantees due to subsidiaries at 30 June 2018.
2018 ANNUAL REPORT
Page | 58
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
35 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 2018 there were no
significant concentrations of credit risk on the statement of financial position.
Impairment losses
None of the Company’s other receivables are past due (2017: nil). As at 30 June 2018 there is no allowance for
impairment in respect to other receivables for the consolidated entity (2017: 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
Trade and other receivables
Cash and cash equivalents
30-Jun-18
AUD
125,060
1,090,415
1,215,477
30-Jun-17
AUD
280,574
4,856,883
5,137,457
2018 ANNUAL REPORT
Page | 59
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
Non-current assets
Trade and other
receivables
0
Other
investments
including
0
-
-
-
-
-
-
-
-
Carrying Amount
Trade and
other
receivables
0
-
125,060
-
125,060
Carrying Amount
Current assets
Other
investments
including
0
-
-
-
-
Cash and cash
equivalents
0
-
-
1,090,415
1,090,415
Non-current assets
Trade and other
receivables
Other
investments
including
derivatives
Trade and
other
receivables
Current assets
Other
investments
including
derivatives
Cash and cash
equivalents
Total
Level 1
0
-
125,060
1,090,415
1,215,477
0
-
-
-
-
Total
Level 1
-
-
-
-
-
-
-
-
-
400,000
280,574
-
-
-
280,574
400,000
-
-
4,856,883
4,856,883
-
400,000
280,574
4,856,883
5,137,457
-
-
400,000
30-Jun-2018
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-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
Liquidity risk
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:
Carrying Amount
Non-current liabilities
Trade and other
payables
Loans and
borrowings
Current liabilities
Trade and
other
Loans and
borrowings
Bank overdraft
Total
Level 1
-
-
-
-
-
-
658,008
658,008
Carrying Amount
Non-current liabilities
Trade and other
payables
Loans and
borrowings
Current liabilities
Trade and
other
Loans and
borrowings
Bank overdraft
-
-
-
-
-
-
651,783
651,783
-
-
-
-
658,008
658,008
Total
Level 1
651,783
651,783
-
-
30-Jun-2018
Financial liabilities measured at fair value
Financial liabilities not measured at fair value
Trade and other payables
30-Jun-2017
Financial assets measured at fair value
Financial assets not measured at fair value
Trade and other payables
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 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.
2018 ANNUAL REPORT
Page | 60
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
Currency risk
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to foreign
currency risk through foreign exchange rate fluctuations.
The parent company loans funds to a Canadian based subsidiary. The funds are loaned in Australian dollars and are
subject to 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
2018
2017
1,090,415
1,090,415
4,856,883
4,856,883
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 2017.
30 June 2018
Variable rate instruments
Cash flow sensitivity
30 June 2017
Variable rate instruments
Fair values
Profit or loss
100bp increase
AUD
100bp decrease
AUD
100bp increase
AUD
100bp decrease
AUD
Equity
10,904
10,904
48,569
48,569
(10,904)
(10,904)
(48,569)
(48,569)
10,904
10,904
48,569
48,569
(10,904)
(10,904)
(48,569)
(48,569)
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
2018
54,382,657
54,382,657
2017
52,646,771
52,646,771
12,022,479
22%
13,081,898
25%
There were no changes in the consolidated entity’s approach to capital management during the year. As at 30 June
2018, neither the Company nor its subsidiaries are subject to externally imposed capital requirements.
36 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
2018 ANNUAL REPORT
Page | 61
(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).
WHITEBARK ENERGY LTD
Notes to the Financial Statements
for the year ended 30 June 2018
Name of Entity
Subsidiaries of Whitebark Energy Ltd
Tejon Energy Pty Ltd
Tejon Energy Inc (100% subsidiary of Tejon Energy Pty Ltd)
Latent Petroleum Pty Ltd
Calor Energy Pty Ltd
Kubla Oil Pty Ltd
Salt Bush Energy Ltd
37 Contingent Liabilities
There are no contingent liabilities at 30 June 2018.
38 Commitments
Country of
incorporation
2018 Equity
holding %
2017 Equity
holding %
Australia
USA
Australia
Australia
Australia
Canada
100
100
100
100
100
100
100
100
100
100
100
100
The Group leases a photocopier/printer under operating leases and is lessee to the premises situated at Level 2, 6
Thelma Street West Perth. The future minimum lease payments are as follows;
30-Jun-18
30-Jun-17
Within 1 year
15,013
59,583
Minimum Lease Payments Due
After 5 years
1 to 5 years
-
5,829
-
-
Total
15,012
65,412
Lease expense during the period amounted to $74,542 (2016: $98,450) 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.
39 Subsequent events
On 1 August 2018 Whitebark Energy announced a renounceable entitlement offer. The offer was made to eligible
shareholders on the basis of one new share for every two shares held on the record date. Each new share had an offer
price of 0.4 cents. Eligible shareholders were also offered one free attaching new option for every one new share
subscribed for and issued under the offer.
On 28 August 2018 the renounceable rights issue closed substantially over-subscribed. The company raised $1,980,862
(before costs) and issued 495,215,367 shares and 515,215,367 options (including 20,000,000 options issued to CPS
Capital Pty Ltd).
To accommodate some of the oversubscription the Company placed (on 31 August 2018) an additional 87,500,000 fully
paid ordinary shares at $0.004 and 87,500,000 attaching options to raise an additional $350,000 (before costs).
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.
2018 ANNUAL REPORT
Page | 62
WHITEBARK ENERGY LTD
Directors’ Declaration
for the year ended 30 June 2018
1.
In the opinion of the Directors of Whitebark Energy Ltd (“the Company”):
a.
The financial statements and notes set out on pages 29 to 62, are in accordance with the Corporations Act
2001, including:
iii.
iv.
Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2018 and of its performance
for the financial year ended on that date; and
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 2018.
Dated at Perth this 26th day of September 2018.
Signed in accordance with a resolution of the Directors.
On behalf of the Directors
David Messina
Managing Director
2018 ANNUAL REPORT
Page | 63
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 2018
Rank
1.
2.
Name
MR CHARLES WAITE MORGAN
MR STEPHEN LESLIE KEENIHAN + MRS SHERIDAN JAY KEENIHAN
Units
93,150,441
82,999,999
% of Units
5.92
5.28
CLASS OF SHARES AND VOTING RIGHTS
At 25 September 2018 there were 1,982 holders of 1,573,146,371 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
10,349
130,219
545,983
42,975,982
1,529,483,838
1,573,146,371
The number of shareholders holding less than a marketable parcel is 1216.
DISTRIBUTION OF LISTED OPTION HOLDERS
Spread of Holdings
Listed Options
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - over
Total
1,801
42,603
112,407
7,987,747
594,570,809
602,715,367
The number of listed option holders holding less than a marketable parcel is 297.
2018 ANNUAL REPORT
Page | 64
WHITEBARK ENERGY LTD
Shareholder Information
UNLISTED OPTIONS
Securities
Number of Securities
on issue
Number
Holders
of
Options exercisable at 1.5 cents
on or before 1 April 2021
Options exercisable at 1.5 cents
on or before 31 May 2021
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 2018
Rank Name
MR CHARLES WAITE MORGAN
2 MR STEPHEN LESLIE KEENIHAN + MRS SHERIDAN JAY KEENIHAN
3
RUSSELL STEPHENSON + PAMELA STEPHENSON
4
VILLEMARETTE NOMINEES PTY LTD
ORABANT PTY LTD
5
6 MR DARREN JOHN HALL
7
J & B SMITH SUPERANNUATION PTY LTD
8 MR DAVID DUNCAN MESSINA
PROSPERION WEALTH MANAGEMENT PTY LTD
9
10 MS CHUNYAN NIU
11
BART SUPERANNUATION PTY LIMITED <4F INVESTMENTS SUPERFUND A/C>
12 ARGONAUT INVESTMENTS PTY LTD
RBO PTY LTD
13
14 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
15 MR DONATO IACOVANTUONO
16 MORITZ INVESTMENTS PTY LTD
17 AET CT PTY LIMITED
18 ONE MANAGED INVESTMENT FUNDS LIMITED
19
20 MR MICHAEL DAVENPORT JONES
TOTAL
CATPAR PTY LTD
Units % of
Units
5.92
5.28
3.59
93,150,441
82,999,999
56,451,538
46,856,085
40,000,000
28,000,000
27,000,000
25,362,000
25,000,000
24,690,864
23,865,026
18,932,000
15,500,000
14,701,445
13,205,292
13,200,000
11,750,000
11,529,713
11,250,000
11,120,787
594,565,190
2.98
2.54
1.78
1.72
1.61
1.59
1.57
1.52
1.20
0.99
0.93
0.84
0.84
0.75
0.73
0.72
0.71
37.79
2018 ANNUAL REPORT
Page | 65
WHITEBARK ENERGY LTD
Shareholder Information
LISTING OF 20 LARGEST LISTED OPTION HOLDERS AS AT 25 SEPTEMBER 2018
Rank
1
2
3
4
Name
MR BIN LIU
MS CHUNYAN NIU
MR CHARLES WAITE MORGAN
MR DAVID DUNCAN MESSINA
PROSPERION WEALTH MANAGEMENT PTY LTD
SCINTILLA STRATEGIC INVESTMENTS LIMITED
TANGO88 PTY LTD
ORABANT PTY LTD
AET CT PTY LIMITED
RUSSELL STEPHENSON + PAMELA STEPHENSON
J & B SMITH SUPERANNUATION PTY LTD
MR STEPHEN LESLIE KEENIHAN + MRS SHERIDAN JAY KEENIHAN
MR JOHN PHILIP DANIELS
MR MICHAEL FAULKNER
MANDOLIN NOMINEES PTY LTD
TOLTEC HOLDINGS PTY LTD
MRS YAN WANG
MR DONATO IACOVANTUONO
YEOH SUPER PTY LTD
MR DARREN JOHN HALL
4
4
7
8
9
10
11
12
13
13
13
13
17
18
19
20
TOTAL
Units
60,000,000
35,240,000
31,050,147
25,000,000
25,000,000
25,000,000
15,000,000
13,000,000
11,750,000
11,290,307
11,000,000
10,052,665
10,000,000
10,000,000
10,000,000
10,000,000
7,500,000
7,000,000
6,900,000
6,500,000
341,283,119
% Units
9.95
5.85
5.15
4.15
4.15
4.15
2.49
2.16
1.95
1.87
1.83
1.67
1.66
1.66
1.66
1.66
1.24
1.16
1.14
1.08
56.63
2018 ANNUAL REPORT
Page | 66
PERMITS
Lease or Project
Legal Description
Interest
Location
AUSTRALIAN LAND INTERESTS
Warro JV
Xanadu JV
RL7
TP15
100%
15%
Western Australia
Western Australia
Rights
100%
100%
WHITEBARK ENERGY LTD
Permits
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Active
WI %
16.00
3.00
2.85
18.00
30.00
30.00
19.50
15.00
10.20
4.80
30.00
30.00
Area
Gilby
0400050335
Gilby
0401030226
Gilby
Gilby
0401120262
0402040090
Gilby
0402080131
Gilby
0402100167
Gilby
0403030271
Gilby
0403090140
Gilby
0404010098
Gilby
0404050581
Gilby
0404080460
Gilby
0405010150
Gilby
0405120574
Gilby
0405120589
Gilby
0406060794
Gilby
0406060795
Gilby
0406060796
top
from
TWP 42-RGE 3-W5M 6
PNG from top ELLERSLIE to
base ELLERSLIE
TWP 40-RGE 28-W4M 12
PNG from surface to base
MANNVILLE
Excluding WELLBORE PROD
TWP 42-RGE 2-W5M E19
WELLBORE PROD
TWP 43-RGE 1-W5M 4
PNG from top LEA PARK to base
MANNVILLE
TWP 46-RGE 1-W5M W30
PNG from surface to top BELLY
RIVER
TWP 46-RGE 2-W5M 36(LSD
1,2)
PNG from surface to base
BELLY RIVER
Excluding PNG from top BELLY
RIVER to base BELLY RIVER
TWP 40-RGE 28-W4M 11
PNG from base EDMONTON to
base MANNVILLE
Excluding WELLBORE PROD
TWP 46-RGE 2-W5M 10
PNG from surface to base
MANNVILLE
Excluding PNG
CARDIUM to base CARDIUM
TWP 41-RGE 28-W4M E8
TWP 41-RGE 28-W4M W8
PNG from top GLAUCONITIC to
base MANNVILLE
WELLBORE PROD
TWP 43-RGE 28-W4M E1
NG from base BELLY RIVER to
base MANNVILLE
Excluding NG
CARDIUM to base CARDIUM
TWP 45-RGE 2-W5M 4
NG
LOWER
MANNVILLE to base LOWER
MANNVILLE
TWP 41-RGE 28-W4M 3
PNG from surface to base
MANNVILLE
TWP 39-RGE 28-W4M 24
PNG from base EDMONTON to
base MANNVILLE
Excluding CBM
TWP
SW18,NE18
PNG from base BELLY RIVER to
base MANNVILLE
Excluding CBM
MANNVILLE
MANNVILLE
Excluding WELLBORE
TWP 40-RGE 1-W5M SE36
PNG from base EDMONTON to
base MANNVILLE
TWP 40-RGE 1-W5M SW36
PNG from base EDMONTON to
base MANNVILLE
TWP 40-RGE 1-W5M NE36
top
base
27-W4M
40-RGE
from
from
from
top
top
to
Gilby
0407110687
Gilby
0408020332
Gilby
0408030204
Gilby
0408030204
Gilby
0411020053
Gilby
0483070174
Gilby
0487020215
Gilby
0495110259
Gilby
0497080281
Gilby
0498040208
Gilby
0498040209
Gilby
0499040098
30.00
Gilby
0500100413
21.00
Gilby
0500100414
Gilby
0505080447
Gilby
0508080372
Gilby
0513110047
Gilby
0576080013
30.00
30.00
30.00
Active
WI %
15.00
30.00
10.53
11.51
30.00
30.00
15.00
11.25
7.50
26.06
29.55
29.55
23.25
30.00
30.00
10.00
30.00
2.49
top
from
PNG from base EDMONTON to
base MANNVILLE
TWP 46-RGE 1-W5M 30
PNG from base BELLY RIVER to
base MANNVILLE
Excluding PNG
CARDIUM to base CARDIUM
Excluding WELLBORE
TWP 40-RGE 1-W5M NE25
PNG from surface to base
MANNVILLE
TWP 43-RGE 1-W5M NW3
PET from top ELLERSLIE to base
ELLERSLIE
TWP 43-RGE 1-W5M SW3
PET from top ELLERSLIE to base
ELLERSLIE
TWP 46-RGE 2-W5M 36
PNG from top MANNVILLE to
base MANNVILLE
TWP 46-RGE 1-W5M E30
NG from surface to top BELLY
RIVER
TWP 41-RGE 1-W5M 10
PNG from surface to base
MANNVILLE
TWP 41-RGE 1-W5M 12
PNG from surface to base
MANNVILLE
TWP 42-RGE 3-W5M 24
PNG from base GLAUCONITIC
to base MANNVILLE
TWP
S24,NW24
NG
BEARPAW
TWP
S24,NW24
NG from base BELLY RIVER to
base MANNVILLE
Excluding NG
CARDIUM to base CARDIUM
TWP 46-RGE 2-W5M NE24
NG from base BELLY RIVER to
base MANNVILLE
Excluding NG
CARDIUM to base CARDIUM
TWP 39-RGE 6-W5M NW17
PNG from top VIKING to base
VIKING
Excluding WELLBORE PROD
TWP 39-RGE 6-W5M 20
PNG from surface to base
MANNVILLE
TWP 40-RGE 6-W5M 21
PNG from base VIKING to base
MANNVILLE
TWP 46-RGE 6-W5M SE22,N22
PNG from base BELLY RIVER to
base CARDIUM
TWP 39-RGE 6-W5M 19
PNG from base CARDIUM to
base MANNVILLE
TWP 39-RGE 6-W5M 34
PNG from surface to base
MANNVILLE
from surface
to base
2-W5M
2-W5M
46-RGE
46-RGE
from
from
top
top
2018 ANNUAL REPORT
Page | 67
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
WHITEBARK ENERGY LTD
Permits
Area
Gilby
0589080419
Gilby
0799030408
Gilby
122791
Gilby
1450462 AB
Gilby
Gilby
1506168
21614
Gilby
21614
Gilby
26889
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
33854
5499110041
754283 AB
754283 AB
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
to base
to base
from surface
from surface
TWP 41-RGE 6-W5M 22
PNG from base VIKING to base
MANNVILLE
TWP 45-RGE 1-W5M 14(LSD 1,
8),N14
PNG from surface to base
MANNVILLE
TWP 41-RGE 2-W5M 31
PNG from top GLAUCONITIC to
base MANNVILLE
TWP 39-RGE 28-W4M SE25
PNG from base EDMONTON to
base MANNVILLE
TWP 40-RGE 28-W4M NW13
NG from surface to basement
TWP 46-RGE 2-W5M 24(LSD
16)
NG
BEARPAW
TWP 46-RGE 2-W5M 24(LSD
9,10,15)
NG
BEARPAW
TWP 45-RGE 1-W5M SW14
TWP 45-RGE 1-W5M 14(LSD
2,7)
PNG from surface to base
MANNVILLE
TWP 41-RGE 3-W5M 36
WELLBORE PROD
TWP 39-RGE 6-W5M 20
PNG from base MANNVILLE to
base ROCK CREEK
TWP 41-RGE 1-W5M NW15
PNG from surface to basement
TWP 41-RGE 1-W5M NE15
PNG from surface to basement
TWP 42-RGE 2-W5M SE19
WELLBORE PROD
TWP 42-RGE 2-W5M NE19
WELLBORE PROD
TWP 40-RGE 1-W5M SW26
ASSOC
GAS
MANNVILLE
MANNVILLE
TWP 40-RGE 1-W5M SE26
ASSOC GAS from surface to
base BANFF
TWP 40-RGE 1-W5M SE26
ASSOC GAS from surface to
base BANFF
TWP 40-RGE 1-W5M NW25
PNG from surface to base
MANNVILLE
TWP 40-RGE 1-W5M NW25
PNG from surface to base
MANNVILLE
TWP 40-RGE 1-W5M SW25
PNG from surface to base
MANNVILLE
TWP 40-RGE 1-W5M NE25
PNG from surface to base
MANNVILLE
Excluding
MANNVILLE
MANNVILLE
TWP 40-RGE 1-W5M NE25
PNG from surface to base
MANNVILLE
TWP 40-RGE 1-W5M SW26
ASSOC
GAS
MANNVILLE
MANNVILLE
TWP 39-RGE 28-W4M SW25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M SE25
PNG from base EDMONTON to
from
to
from
to
top
base
top
base
top
base
from
PET
to
Active
WI %
15.00
POOLED
30
Gilby
Gilby
Freehold
Freehold
3.47
Gilby
Freehold
30.00
Gilby
Freehold
30.00
26.06
26.06
15.00
1.14
30.00
30.00
30.00
2.85
2.85
Gilby
Gilby
Gilby
Gilby
Freehold
Freehold
Freehold
Freehold
Gilby
Freehold
Gilby
Freehold
Gilby
Gilby
Freehold
Freehold
13.60
Gilby
Freehold
Gilby
Freehold
13.60
13.60
Gilby
Freehold
30.00
Gilby
Freehold
30.00
Gilby
Freehold
30.00
Gilby
Freehold
30.00
Gilby
Freehold
Gilby
Freehold
Gilby
Freehold
Gilby
Gilby
Gilby
Freehold
Freehold
Freehold
30.00
13.60
30.00
30.00
Active
WI %
30.00
30.00
7.50
7.50
30.00
30.00
2.85
4.80
7.50
10.50
10.53
10.50
11.51
21.00
21.00
30.00
30.00
30.00
30.00
13.60
13.60
2.85
2.85
4.80
28-W4M
base MANNVILLE
TWP 39-RGE 28-W4M NE25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M NW25
PNG from base EDMONTON to
base MANNVILLE
TWP 42-RGE 28-W4M NE35
NG from top MANNVILLE to
base MANNVILLE
TWP 42-RGE 28-W4M NE35
NG from top MANNVILLE to
base MANNVILLE
TWP 40-RGE 1-W5M SW25
PNG from surface to base
MANNVILLE
TWP 40-RGE 1-W5M SW25
PNG from surface to base
MANNVILLE
TWP 42-RGE 2-W5M W19
WELLBORE PROD
43-RGE
TWP
NE1,SW1
NG from top ELLERSLIE to base
ELLERSLIE
NG from top GLAUCONITIC to
base GLAUCONITIC
TWP 42-RGE 28-W4M NW35
TWP 42-RGE 28-W4M S35
NG from top MANNVILLE to
base MANNVILLE
TWP 43-RGE 1-W5M 3
NG from top ELLERSLIE to base
ELLERSLIE
Excluding CBM
TWP 43-RGE 1-W5M NW3
PET from top ELLERSLIE to base
ELLERSLIE
TWP 43-RGE 1-W5M SE3
PET from top ELLERSLIE to base
ELLERSLIE
TWP 43-RGE 1-W5M SW3
PET from top ELLERSLIE to base
ELLERSLIE
TWP 42-RGE 1-W5M 33
NG from top ELLERSLIE to base
ELLERSLIE
Excluding CBM
TWP 42-RGE 1-W5M NE33
PET from top ELLERSLIE to base
ELLERSLIE
TWP 39-RGE 28-W4M SW25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M SE25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M NE25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M NW25
PNG from base EDMONTON to
base MANNVILLE
TWP 40-RGE 1-W5M SW26
ASSOC
GAS
MANNVILLE
MANNVILLE
TWP 40-RGE 1-W5M SW26
ASSOC
GAS
MANNVILLE
MANNVILLE
TWP 42-RGE 2-W5M SE19
WELLBORE PROD
TWP 42-RGE 2-W5M NE19
WELLBORE
TWP 43-RGE 28-W4M SE1
NG from base BELLY RIVER to
base BANFF
from
to
from
to
top
base
top
base
2018 ANNUAL REPORT
Page | 68
WHITEBARK ENERGY LTD
Permits
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Gilby
Freehold
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Gilby
Freehold
Gilby
Freehold
top
top
from
from
Excluding NG
CARDIUM to base CARDIUM
TWP 43-RGE 28-W4M SE1
NG from base BELLY RIVER to
base BANFF
Excluding NG
CARDIUM to base CARDIUM
TWP 40-RGE 1-W5M SW25
PNG from surface to base
MANNVILLE
TWP 39-RGE 28-W4M SW25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M SW25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M SW25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M SW25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M SE25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M SE25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M SE25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M NE25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M NW25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M NE25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M NW25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M SE25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M NE25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M NW25
PNG from base EDMONTON to
basement
TWP 40-RGE 1-W5M SE25
PNG from surface to base
MANNVILLE
TWP 39-RGE 28-W4M SW25
PNG from base EDMONTON to
base MANNVILLE
Excluding
PET
ELLERSLIE to base ELLERSLIE
TWP 39-RGE 28-W4M SE25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M SE25
PNG from base EDMONTON to
base MANNVILLE
TWP 43-RGE 28-W4M SE1
NG from base BELLY RIVER to
base BANFF
Excluding NG
CARDIUM to base CARDIUM
TWP 39-RGE 28-W4M SW25
PNG from base EDMONTON to
base MANNVILLE
Excluding
PET
ELLERSLIE to base ELLERSLIE
TWP 40-RGE 1-W5M SE25
PNG from surface to base
from
from
from
top
top
top
Active
WI %
4.80
30.00
30.00
30.00
30.00
30.00
30.00
Gilby
Gilby
Freehold
Freehold
Gilby
Freehold
Gilby
Gilby
Gilby
Gilby
Freehold
Freehold
Freehold
Freehold
30.00
Gilby
Freehold
30.00
30.00
30.00
30.00
Gilby
Gilby
Freehold
Freehold
Gilby
Freehold
30.00
Gilby
Freehold
30.00
30.00
Gilby
Freehold
30.00
30.00
30.00
30.00
30.00
4.80
30.00
Gilby
Freehold
Gilby
Gilby
Gilby
Gilby
Freehold
Freehold
Freehold
Freehold
Gilby
Freehold
Gilby
Freehold
30.00
Gilby
Freehold
top
base
top
base
top
base
top
base
top
base
from
to
from
to
from
to
from
to
from
to
MANNVILLE
TWP 40-RGE 1-W5M SE25
PNG from surface to base
MANNVILLE
TWP 40-RGE 1-W5M SW26
ASSOC
GAS
MANNVILLE
MANNVILLE
TWP 40-RGE 1-W5M SW26
GAS
ASSOC
MANNVILLE
MANNVILLE
TWP 40-RGE 1-W5M SW25
PNG from surface to base
MANNVILLE
TWP 39-RGE 28-W4M SE25
PNG from base EDMONTON to
base MANNVILLE
TWP 40-RGE 1-W5M NW25
PNG from surface to base
MANNVILLE
TWP 40-RGE 1-W5M SE26
ASSOC
GAS
MANNVILLE
MANNVILLE
TWP 40-RGE 1-W5M SE26
ASSOC
GAS
MANNVILLE
MANNVILLE
TWP 39-RGE 28-W4M SE25
PNG from base EDMONTON to
base MANNVILLE
TWP 40-RGE 1-W5M SE26
ASSOC
GAS
MANNVILLE
MANNVILLE
TWP 40-RGE 1-W5M SW26
ASSOC
GAS
MANNVILLE
MANNVILLE
TWP 43-RGE 28-W4M 1(LSD
11,14)
NG from base BELLY RIVER to
base BANFF
Excluding NG
CARDIUM to base CARDIUM
TWP 42-RGE 3-W5M SE7
PET from top ELLERSLIE to base
ELLERSLIE
PET from top NORDEGG to
base NORDEGG
TWP 42-RGE 3-W5M 7
NG from top ELLERSLIE to base
ELLERSLIE
NG from top NORDEGG to base
NORDEGG
TWP 41-RGE 1-W5M SE15
NG
from surface
HORSESHOE CANYON
TWP 40-RGE 28-W4M SE13
PET from top MANNVILLE to
base MANNVILLE
TWP 40-RGE 28-W4M SW13
PET from top MANNVILLE to
base MANNVILLE
TWP
40-RGE
S13,NE13,NW13
NG from top MANNVILLE to
base MANNVILLE
TWP 39-RGE 28-W4M SW25
PNG to base MANNVILLE
Excluding
from
PET
ELLERSLIE to base ELLERSLIE
TWP 39-RGE 28-W4M SE25
PNG from base EDMONTON to
base MANNVILLE
TWP 43-RGE 28-W4M 1(LSD
12,13)
from
to
top
base
to base
28-W4M
from
top
top
Active
WI %
30.00
13.60
13.60
30.00
30.00
30.00
13.60
13.60
30.00
13.60
13.60
4.80
1.13
1.13
30.00
30.00
30.00
30.00
30.00
30.00
4.80
2018 ANNUAL REPORT
Page | 69
WHITEBARK ENERGY LTD
Permits
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Active
WI %
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Gilby
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
0501020179
Gilby
0502080498
Gilby
0505070276
Gilby
0505070277
Gilby
0505080141
Gilby
0507050333
Gilby
0507050333
Gilby
0507050333
Gilby
0507050334
Gilby
5406060285
Gilby
5496050091
Leaman
0502110177
Leaman
0504030792
Leaman
0504040482
top
from
NG from base BELLY RIVER to
base BANFF
Excluding NG
CARDIUM to base CARDIUM
TWP 39-RGE 28-W4M SW25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M NE25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M NW25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M SE25
PNG from base EDMONTON to
base MANNVILLE
TWP 39-RGE 28-W4M SE25
PNG from base EDMONTON to
base MANNVILLE
TWP 40-RGE 1-W5M SW25
PNG from surface to base
MANNVILLE
TWP 40-RGE 1-W5M SW25
PNG from surface to base
MANNVILLE
TWP 39-RGE 28-W4M SW25
PNG from base EDMONTON to
base MANNVILLE
PET from top ELLERSLIE to base
ELLERSLIE
TWP 40-RGE 1-W5M SW25
PNG from surface to base
MANNVILLE
TWP 41-RGE 1-W5M SW15
PNG from surface to basement
TWP 55-RGE 17-W5M S7
PNG from base FISH SCALE to
base ROCK CREEK
TWP 55-RGE 17-W5M 5
PNG from surface to base
CARDIUM
TWP 55-RGE 17-W5M S7
PNG from surface to base
CARDIUM
TWP 55-RGE 17-W5M N7
PNG from base FISH SCALE to
base ROCK CREEK
TWP 55-RGE 17-W5M S6,NE6
PNG from surface to base
CARDIUM
TWP 54-RGE 18-W5M NE35
PNG from top CARDIUM to
base CARDIUM
TWP 54-RGE 18-W5M W35
PNG from top CARDIUM to
base CARDIUM
TWP 54-RGE 18-W5M 35
PNG from base CARDIUM to
base SPIRIT RIVER
PNG from base BLUESKY to
base BLUESKY-BULLHEAD
TWP 54-RGE 18-W5M 36
PNG from top CARDIUM to
base CARDIUM
TWP 55-RGE 17-W5M 8
PNG
from base BLUESKY-
BULLHEAD to base ROCK CREEK
TWP 54-RGE 18-W5M SE35
PNG from top CARDIUM to
base CARDIUM
TWP 55-RGE 9-W5M 11
PNG from surface to base
NORDEGG
TWP 55-RGE 9-W5M 36
PNG from surface to base
NORDEGG
TWP 55-RGE 9-W5M 35
PNG from surface to base
Leaman
0504100171
30.00
Leaman
0506070654
30.00
Leaman
0506070655
30.00
Leaman
0513020072
30.00
Leaman
0513040053
30.00
30.00
30.00
30.00
Leaman
0513080054
Leaman
0517090172
Leaman
0578080076
Leaman
0578080077
30.00
Leaman
0578080078
30.00
7.50
18.75
30.00
7.50
30.00
6
12.00
Leaman
0578100052
Leaman
0578120073
Leaman
0578120074
Leaman
0578120076
Leaman
0578120076
Leaman
057812A073
Leaman
0579120177
Leaman
0579120178
30.00
Leaman
0580020159
Leaman
0582010223
Leaman
0582010223
Leaman
0584080106
Leaman
0585080381
Leaman
0585080381
12.00
30.00
6
20.00
6.67
13.33
Leaman
0585090107
55-RGE
9-W5M
NORDEGG
TWP 55-RGE 9-W5M 14
PNG from base VIKING to base
NORDEGG
TWP 55-RGE 8-W5M NW18
PNG from surface to base
NORDEGG
TWP 55-RGE 9-W5M NE13
PNG from base MANNVILLE to
base NORDEGG
TWP 55-RGE 8-W5M S18,NE18
PNG from surface to base
NORDEGG
TWP
S13,NW13
PNG from base MANNVILLE to
base NORDEGG
TWP 54-RGE 9-W5M 15
PNG from surface to base
NORDEGG
TWP 53-RGE 9-W5M E26
PNG from surface to base
BASEMENT
TWP 57-RGE 9-W5M 31
PNG from surface to base
NORDEGG
Excluding WELLBORE PROD
TWP 57-RGE 10-W5M 35
PNG from top NORDEGG to
base NORDEGG
TWP 57-RGE 10-W5M N36
PNG from surface to base
NORDEGG
TWP 58-RGE 9-W5M S32
PNG from surface to base
NORDEGG
TWP 57-RGE 9-W5M S7,NE7
PNG from surface to base
NORDEGG
TWP 57-RGE 9-W5M 18
PNG from surface to base
NORDEGG
TWP 58-RGE 10-W5M SE1,N1
NG
from
NORDEGG
TWP 58-RGE 10-W5M SE1,N1
NG from top NORDEGG to base
NORDEGG
TWP 57-RGE 9-W5M NW7
PNG from surface to base
NORDEGG
TWP 57-RGE 10-W5M 34
WELLBORE ONLY
TWP 58-RGE 10-W5M 4
PNG from surface to base
NORDEGG
TWP 56-RGE 10-W5M 22
PNG from surface to base
MANNVILLE
TWP 58-RGE 9-W5M N20
PNG from surface to base
NORDEGG
Excluding WELLBORE
TWP 58-RGE 9-W5M 29
PNG from surface to base
NORDEGG
TWP 53-RGE 8-W5M 27
PNG from surface to base
EDMONTON
TWP 57-RGE 9-W5M NW16
PNG from surface to base
NORDEGG
TWP 57-RGE 9-W5M 28
PNG from top NORDEGG to
base NORDEGG
Excluding CBM
TWP 57-RGE 9-W5M 17
PNG from top NORDEGG to
surface
top
to
Active
WI %
20.00
13.00
20.00
20.00
20.00
20.00
20.00
7.42
7.42
3.71
7.00
7.42
2.60
2.22
2.22
7.42
10.00
4.64
20.00
3.50
20.00
10.00
8.00
20.00
12.00
2018 ANNUAL REPORT
Page | 70
WHITEBARK ENERGY LTD
Permits
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Leaman
0585090109
Leaman
0585090110
Leaman
0585100503
Leaman
0586020328
Leaman
0590020438
Leaman
0590020438
Leaman
0591050577
Leaman
0591050578
Leaman
0593100167
Leaman
0593100169
Leaman
0594030698
Leaman
0594030701
Leaman
0594100562
Leaman
0594110221
Leaman
0595030610
Leaman
0595030612
Leaman
0595080624
Leaman
0595110324
Leaman
0596050319
Leaman
0596080466
Leaman
0597030415
Leaman
0597030415
58-RGE
10-W5M
base NORDEGG
TWP 57-RGE 9-W5M 29
PNG from surface to base
NORDEGG
Excluding WELLBORE
TWP 57-RGE 9-W5M 32
PNG from top NORDEGG to
base NORDEGG
TWP 58-RGE 9-W5M 5
PNG from top NORDEGG to
base NORDEGG
TWP 57-RGE 9-W5M 10
PNG from surface to base
NORDEGG
TWP 57-RGE 9-W5M 33
PNG from surface to base
NORDEGG
TWP 58-RGE 9-W5M 4
PNG from surface to base
NORDEGG
TWP 58-RGE 10-W5M 13
PNG to base NORDEGG
TWP
SE15,N15
PNG from surface to base
NORDEGG
TWP 53-RGE 9-W5M 10
CBM from surface to base
PEKISKO
TWP 53-RGE 9-W5M 16
PNG from base VIKING to base
PEKISKO
Excluding CBM
TWP 55-RGE 8-W5M 22
PNG from surface to base
NORDEGG
TWP 56-RGE 10-W5M 24
PNG from surface to base
NORDEGG
TWP 53-RGE 9-W5M N21,SE21
PNG from surface to base
PEKISKO
Excluding CBM from surface to
base MANNVILLE
TWP 54-RGE 9-W5M 10
PNG from top SURFACE to base
MANNVILLE
Excluding CBM
TWP 55-RGE 8-W5M 9
PNG from surface to base
NORDEGG
TWP 55-RGE 8-W5M 15
PNG from surface to base
NORDEGG
TWP 55-RGE 8-W5M 4
PNG from surface to base
NORDEGG
Excluding WELLBORE
TWP 55-RGE 8-W5M 23
PNG from surface to base
NORDEGG
TWP 54-RGE 8-W5M 2
PNG from surface to base
MANNVILLE
Excluding PNG
NOTIKEWIN
NOTIKEWIN
TWP 58-RGE 9-W5M S22
TWP 58-RGE 9-W5M NE22
TWP 58-RGE 9-W5M NW22
NG
from surface
MANNVILLE
TWP 54-RGE 9-W5M NE35
PNG from surface to base
EDMONTON
TWP
NW35,S35
PNG from surface to base
top
base
to base
9-W5M
54-RGE
from
to
Active
WI %
17.00
16.6
10.00
8.00
10.00
20.00
7.50
4.00
Leaman
0597090712
Leaman
0597100806
Leaman
0597100807
Leaman
0597100906
Leaman
0597100906
Leaman
0597120230
Leaman
0599050113
5.20
Leaman
10.00
Leaman
1043
1043
20.00
Leaman
112437
20.00
3.50
20.00
13.00
20.00
13.00
20.00
12.00
4.80
20.00
20.00
Leaman
112438
Leaman
12670
Leaman
1304B
Leaman
1304B
Leaman
21631
Leaman
21810
Leaman
21811
Leaman
26266
Leaman
31639
Leaman
31640
EDMONTON
TWP 57-RGE 11-W5M SE4
PNG from surface to base
MANNVILLE
TWP 55-RGE 9-W5M 14
PNG from surface to base
VIKING
TWP 58-RGE 11-W5M 4
PNG from base EDMONTON to
base VIKING
TWP 55-RGE 9-W5M 13
PNG from surface to base
MANNVILLE
TWP 55-RGE 9-W5M 12
CBM from surface to base
MANNVILLE
WELLBORE ONLY
top
from
from
Tract 3
WELLBORE ONLY
TWP 57-RGE 9-W5M 3
PNG from surface to base
NORDEGG
TWP 56-RGE 8-W5M 11
CBM from surface to base
EDMONTON
TWP 57-RGE 8-W5M N22,SE22
NG from top JURASSIC to base
JURASSIC
TWP 57-RGE 8-W5M 15
NG from top JURASSIC to base
JURASSIC
Excluding WELLBORE ONLY
TWP 56-RGE 8-W5M W34
PNG from top SURFACE to base
PEKISKO
Excluding NG from top VIKING
to base VIKING
top
Excluding NG
DETRITAL SANDSTONE to base
DETRITAL SANDSTONE
TWP 57-RGE 8-W5M SW3
PNG from surface to base
PEKISKO
Excluding NG
DETRITAL to base DETRITAL
Excluding NG from top VIKING
to base VIKING
TWP 58-RGE 9-W5M S20
PNG from surface to base
NORDEGG
Excluding WELLBORE
TWP 58-RGE 8-W5M SE10
NG from top NORDEGG to base
NORDEGG
TWP 58-RGE 8-W5M 4
NG from top NORDEGG to base
NORDEGG
NG from top PEKISKO to base
PEKISKO
TWP 54-RGE 8-W5M 12
PNG from surface to base
NORDEGG
TWP 58-RGE 8-W5M SW10
PNG from surface to base
NORDEGG
TWP 58-RGE 8-W5M N10
PNG from surface to base
NORDEGG
TWP 54-RGE 9-W5M 3
PNG from surface to base
MANNVILLE
Excluding PNG from top VIKING
to base VIKING
TWP 57-RGE 9-W5M 4
PNG from surface to base
NORDEGG
TWP 57-RGE 10-W5M NW13
Active
WI %
6.00
20.00
5.00
20.00
20.00
8.00
20.00
14.67
14.67
13.33
13.33
3.50
20.00
20.00
20.00
20.00
20.00
19.30
3.33
5.96
2018 ANNUAL REPORT
Page | 71
WHITEBARK ENERGY LTD
Permits
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Active
WI %
Leaman
31640
Leaman
31640
Leaman
31640
Leaman
31640
Leaman
31640
Leaman
31640
Leaman
31640A
Leaman
360
Leaman
37585
Leaman
37586
Leaman
37586
Leaman
38527
Leaman
5404040707
Leaman
5417030079
Leaman
5417030079
Leaman
5417030207
57-RGE
10-W5M
PNG from top NORDEGG to
base NORDEGG
TWP
E23,SW23
PNG from top NORDEGG to
base NORDEGG
TWP 57-RGE 10-W5M SW24
TWP 57-RGE 10-W5M N24
PNG from surface to base
NORDEGG
from
56-RGE
8-W5M
TWP 57-RGE 10-W5M S13
PNG from top NORDEGG to
base NORDEGG
TWP 57-RGE 10-W5M E14
PNG from surface to base
NORDEGG
TWP 57-RGE 10-W5M 25
PNG from surface to base
NORDEGG
TWP 57-RGE 9-W5M 30
TWP 57-RGE 10-W5M 26
PNG from surface to base
NORDEGG
TWP 57-RGE 9-W5M 19
PNG from surface to base
NORDEGG
TWP
N34,SW34
TWP 57-RGE 8-W5M S3
NG
top DETRITAL
SANDSTONE to base DETRITAL
SANDSTONE
TWP 57-RGE 10-W5M S36
PNG from surface to base
NORDEGG
TWP 58-RGE 10-W5M 3
PNG from surface to base
NORDEGG
TWP 58-RGE 10-W5M 10
PNG from surface to base
NORDEGG
TWP 56-RGE 8-W5M SE34
PNG from surface to base
PEKISKO
TWP 56-RGE 9-W5M N2,SW2
PNG from surface to base
NORDEGG
TWP 53-RGE 9-W5M W26
PNG from surface to base
PEKISKO
TWP 53-RGE 9-W5M 27,34
PNG from surface to basement
Tract 2
TWP 53-RGE 9-W5M 28
PNG from base EDMONTON to
base BASEMENT
TWP
NE16,S16,20,21
PNG from surface to base
BASEMENT
Excluding WELLBORE
9-W5M
57-RGE
Leaman
5417090210
Leaman
5417110139
Leaman
5417120215
Leaman
5497020047
Tract 2
TWP 57-RGE 9-W5M NW16
PNG from base NORDEGG to
base BASEMENT
TWP 53-RGE 9-W5M 22
PNG from surface to base
BASEMENT
TWP 54-RGE 9-W5M 13,24
PNG from surface to base
BASEMENT
TWP 57-RGE 10-W5M 27
PNG from surface to base
BASEMENT
TWP 57-RGE 11-W5M 35
2.82
Leaman
5497040081
Leaman
815
3.76
5.96
Leaman
816
7.42
Leaman
Freehold
9.08
7.42
7.42
13.33
Leaman
Freehold
Niton
0504030331
Niton
0597040239
Niton
5497010208
3.71
Niton
5497010208
4.64
Niton
5497020042
4.64
Niton
5497040009
13.33
Niton
Freehold
13.33
20.00
20.00
20.00
20.00
20.00
20.00
10.00
Niton
Freehold
Other
0486010407
Other
0486010407
Other
29953
Other
3932
Other
0416050054
Other
0486030221
Other
049012A258
to
top
to base
CBM from surface to base
MANNVILLE
TWP 56-RGE 10-W5M 23
PNG from base MANNVILLE to
base NORDEGG
TWP 57-RGE 8-W5M S9
NG from top JURASSIC to base
JURASSIC
NG from top PEKISKO to base
PEKISKO
Excluding WELLBORE ONLY
TWP 57-RGE 8-W5M N9,16
NG from top JURASSIC to base
JURASSIC
TWP 57-RGE 10-W5M NW23
from surface
PNG
NORDEGG
Excluding NG from surface to
base EDMONTON
TWP 58-RGE 9-W5M NW22
NG
from surface
NORDEGG
TWP 56-RGE 12-W5M E23
PNG from base VIKING to base
NOTIKEWIN
TWP 56-RGE 12-W5M 14
PNG from surface to base ROCK
CREEK
Excluding CBM
TWP 56-RGE 12-W5M 27
PNG from surface to base
MANNVILLE
Excluding WELLBORE
TWP 56-RGE 12-W5M 26
PNG from surface to base
NOTIKEWIN
TWP 56-RGE 12-W5M 28
PNG from surface to base
NOTIKEWIN
TWP 56-RGE 12-W5M N22
PNG from surface to base
MANNVILLE
TWP 56-RGE 12-W5M S22
PNG from surface to base
MANNVILLE
Excluding CBM
TWP 56-RGE 12-W5M W23
PNG from base VIKING to base
NOTIKEWIN
TWP 56-RGE 1-W5M E17
PNG from surface to base
MANNVILLE
TWP 56-RGE 1-W5M W17
PNG from surface to base
MANNVILLE
TWP 41-RGE 21-W4M NW24
PNG from top VIKING to base
MANNVILLE
Excluding WELLBORE
TWP
S24,NE24
PNG from top VIKING to base
MANNVILLE
Excluding WELLBORE
TWP 26-RGE 14-W4M 1
PNG from surface to base
BASEMENT
TWP 25-RGE 14-W4M E36
NG from top VIKING to base
VIKING
NG from top BASAL COLORADO
to base BASAL COLORADO
NG
BASAL
BLAIRMORE to base BASAL
BLAIRMORE
TWP 25-RGE 14-W4M W36
PNG from surface to base
MANNVILLE
21-W4M
41-RGE
from
top
Active
WI %
20.00
13.33
13.33
2.82
4.8
20.00
20.00
14.00
20.00
7.00
20.00
20.00
20.00
0.75
0.75
20.00
20.00
10.00
9.08
9.08
2018 ANNUAL REPORT
Page | 72
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Area
Other
0497050619
Active
WI %
9.08
WHITEBARK ENERGY LTD
Permits
from
from surface to base
TWP 25-RGE 14-W4M NE36
PNG from surface to base
BANFF
Excluding NG from top BASAL
COLORADO to base BASAL
COLORADO
Excluding NG from top BASAL
BLAIRMORE to base BASAL
BLAIRMORE
Excluding NG from top VIKING
to base VIKING
TWP 89-RGE 5-W6M 1
PNG
top BLUESKY-
BULLHEAD to base BLUESKY-
BULLHEAD
TWP 73-RGE 10-W6M W24
PNG from surface to base
BLUESKY-BULLHEAD
TWP 73-RGE 10-W6M E24
PNG from surface to base
CHARLIE LAKE
TWP 36-RGE 3-W5M SE29
PET from top BASAL QUARTZ to
base BASAL QUARTZ
PET from top OSTRACOD to
base OSTRACOD
TWP 35-RGE 3-W5M SW21
PNG from surface to base
CARDIUM
TWP 36-RGE 3-W5M SE5
PET from top CARDIUM to base
CARDIUM
TWP 36-RGE 3-W5M NE5
PET from top CARDIUM to base
CARDIUM
Excluding WELLBORE PROD
TWP 36-RGE 3-W5M NW5
PET
CARDIUM
TWP 36-RGE 3-W5M SW5
PET from top CARDIUM to base
CARDIUM
TWP 36-RGE 3-W5M SE5
PET from top CARDIUM to base
CARDIUM
TWP 36-RGE 3-W5M SE5
PET from top CARDIUM to base
CARDIUM
TWP 56-RGE 15-W5M NW22
PNG
from surface
CARDIUM
TWP 54-RGE 16-W5M NW33
PNG from surface to base
BLUESKY-BULLHEAD
TWP 62-RGE 25-W5M 35
PNG from surface to base
PEACE RIVER
Excluding WELLBORE
TWP 62-RGE 4-W5M 3
PNG from surface to base
VIKING
TWP 62-RGE 4-W5M 14
PNG from surface to base
VIKING
TWP
S30,NW30
NG from top BANFF to base
BANFF
TWP 65-RGE 26-W4M 17
PNG from surface to base
BASEMENT
TWP 65-RGE 26-W4M 18
PNG from surface to base
BASEMENT
TWP 67-RGE 26-W4M 22
PNG from surface to base
BASEMENT
TWP 67-RGE 26-W4M SE28
5-W5M
61-RGE
top
to
Other
0582080144
Other
058208A144
Other
13198
20.00
Other
13533
20.00
20.00
19.25
20.00
5.00
5
10
9.5191
20.00
5.00
5.00
5.83
7.00
5.00
5.00
2.50
5.00
20.00
20.00
20.00
20.00
Other
14445
Other
22178
Other
22178
Other
22178
Other
22178A
Other
29397
Other
34937
Other
38215
Other
5414070312
Other
Other
Freehold
0418020147
Paddle River
0182030004
Paddle River
0182030004
Paddle River
0182030004
Paddle River
0182030004
Paddle River
0182030006
Paddle River
018203A006
to
top
top
from
2-W5M
base UPPER
PNG from surface to base
BASEMENT
TWP 61-RGE 4-W5M 31
PNG from surface to base
MANNVILLE
TWP 61-RGE 4-W5M 30
PNG from surface to base
MANNVILLE
TWP 61-RGE 5-W5M NE30
PNG
MANNVILLE to base BANFF
TWP 68-RGE 2-W5M NE19
PNG from surface to base
MANNVILLE
Excluding WELLBORE
TWP 68-RGE 3-W5M SE36
PNG
to
from surface
GILWOOD
Excluding PNG from surface to
base MANNVILLE
TWP
68-RGE
NW19,SE19
PNG from surface to base
MANNVILLE
Excluding WELLBORE
TWP 68-RGE 2-W5M NW17
PNG from top GRAND RAPIDS
to base BLUESKY-BULLHEAD
TWP 68-RGE 2-W5M 30
PNG from surface to base
MANNVILLE
TWP 68-RGE 3-W5M SW36
from surface
PNG
GILWOOD
Excluding PNG from surface to
base MANNVILLE
TWP 68-RGE 2-W5M S17,NE17
PNG from top GRAND RAPIDS
to base BLUESKY-BULLHEAD
TWP 68-RGE 2-W5M SW19
PNG from surface to base
MANNVILLE
Excluding WELLBORE
TWP 61-RGE 4-W5M N36,SE36
PNG from surface to base
VIKING
TWP 61-RGE 7-W5M 19
TWP
24,N25,SE25
PNG from surface to base
BASEMENT
TWP 51-RGE 14-W4M NW27
WELLBORE
TWP 48-RGE 27-W4M W16
PNG from surface to base
NISKU
TWP 57-RGE 6-W5M SE21
PNG from surface to base
BELLY RIVER
Excluding NG from top BELLY
RIVER to base BELLY RIVER
57-RGE
TWP
N21,SW21
PNG from surface to base
BELLY RIVER
Excluding NG from top BELLY
RIVER to base BELLY RIVER
TWP 57-RGE 6-W5M 22
PNG from top NORDEGG to
base NORDEGG
TWP 57-RGE 6-W5M N15
NG from top NORDEGG to base
NORDEGG
TWP 58-RGE 6-W5M 3
PNG from surface to base
BANFF
TWP 58-RGE 6-W5M SW10
PNG from surface to base
6-W5M
8-W5M
61-RGE
Active
WI %
1.54
4.87
5.00
0.625
10.00
0.625
2.50
10.00
10.00
2.5
0.625
6.67
20.00
20.00
20.00
0.83
0.83
0.83
1.88
11.23
20.00
Other
0510060146
Other
0514110057
Other
0591040348
Other
0481100014
Other
0484090377
Other
Freehold
Other
Freehold
Other
Freehold
Other
Freehold
Other
Freehold
Other
Freehold
Other
018012A014
Other
0502030291
Other
5405120248
Other
0178100001
Other
0178100008
Other
0276080004
Other
0417020121
Other
0417020122
Other
0514080070
Other
0516050022
2018 ANNUAL REPORT
Page | 73
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Paddle River
0401080193
Paddle River
0500080482
Paddle River
0507070449
Paddle River
0509010131
Paddle River
0511030353
Paddle River
0511030676
Paddle River
0511050342
Paddle River
0577030155
Paddle River
0579080256
Paddle River
0580060165
Paddle River
0581020085
Paddle River
0581020085
Paddle River
0581090185
Paddle River
0581090214
Paddle River
0581100188
Paddle River
0581100188
Paddle River
058407A286
Paddle River
058407A286
Paddle River
0587090394
Paddle River
0588020179
Paddle River
0589060122
Paddle River
0589060123
to
from
58-RGE
6-W5M
top
base
BANFF
TWP 54-RGE 4-W5M 17
PNG from surface to base
MANNVILLE
Excluding PNG
NOTIKEWIN
NOTIKEWIN
TWP 55-RGE 6-W5M 9
PNG from surface to base
BELLY RIVER
TWP 56-RGE 7-W5M 4
PNG from surface to base
MANNVILLE
TWP 55-RGE 7-W5M NE30
PNG from top MANNVILLE to
base MANNVILLE
Excluding WELLBORE PROD
TWP 55-RGE 7-W5M 33
PNG from top MANNVILLE to
base MANNVILLE
TWP 55-RGE 7-W5M N28
PNG from top MANNVILLE to
base MANNVILLE
TWP 56-RGE 7-W5M N5
PNG from top MANNVILLE to
base MANNVILLE
TWP 57-RGE 6-W5M S15
NG from top NORDEGG to base
NORDEGG
TWP 58-RGE 6-W5M 20
PNG from surface to base
NORDEGG
Excluding CBM
TWP 58-RGE 6-W5M N10,SE10
PNG from surface to base
BANFF
TWP
N13,SW13
PNG from surface to base
NORDEGG
TWP 58-RGE 6-W5M 24
PNG from surface to base
NORDEGG
TWP 55-RGE 6-W5M 18,19
PNG from base BELLY RIVER to
base NORDEGG
CBM from surface to base
NORDEGG
TWP 55-RGE 7-W5M 21
PNG
NORDEGG
TWP 55-RGE 6-W5M 20
PNG from surface to base
NORDEGG
TWP 55-RGE 6-W5M 17
PNG from base BELLY RIVER to
base NORDEGG
Excluding CBM
TWP 59-RGE 6-W5M N4,SW4
PNG from surface to base
NORDEGG
TWP 58-RGE 6-W5M 33
PNG from surface to base
NORDEGG
TWP 58-RGE 6-W5M 15
PNG from surface to base
NORDEGG
Excluding CBM
TWP 56-RGE 7-W5M 27
PNG from surface to base
NORDEGG
TWP 58-RGE 6-W5M E21
PNG from surface to base
NORDEGG
TWP 58-RGE 6-W5M 22
PNG from surface to base
BANFF
Excluding CBM
from surface
top
to
WHITEBARK ENERGY LTD
Permits
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Active
WI %
4.00
Paddle River
0589110368
Paddle River
0597040236
4.00
Paddle River
0598080338
20.00
Paddle River
26248
20.00
Paddle River
35970
Paddle River
5409100375
20.00
20.00
Paddle River
5411110203
20.00
Paddle River
5411110203
1.88
Paddle River
5411110204
20.00
20.00
20.00
Paddle River
5411110210
Paddle River
5411110210
Paddle River
5411110211
20.00
Paddle River
5414020096
5.30
Paddle River
5414070308
Paddle River
5414100229
5.10
11.78
11.78
15
20.00
20.00
20.00
20.00
20.00
Paddle River
5417090087
Paddle River
5417090088
Paddle River
5417090211
Paddle River
5495090111
TWP 58-RGE 6-W5M W21
PNG from surface to base
NORDEGG
TWP 55-RGE 7-W5M 32
PNG from top GLAUCONITIC to
base GLAUCONITIC
Excluding CBM
TWP 58-RGE 6-W5M E16
PNG from surface to base
NORDEGG
TWP 58-RGE 6-W5M 17
PNG from surface to base
NORDEGG
TWP 58-RGE 6-W5M 18
PNG from surface to base
NORDEGG
TWP 55-RGE 7-W5M 31
PNG from surface to base
MANNVILLE
Excluding WELLBORE PROD
TWP 55-RGE 6-W5M 34
PNG from base BELLY RIVER to
base MANNVILLE
TWP 55-RGE 6-W5M 27,28
PNG from surface to base
MANNVILLE
TWP
6-W5M
55-RGE
21,22,23,27,28,29,30,31,32,33
,34,36
PNG from base MANNVILLE to
base NORDEGG
TWP 56-RGE 6-W5M 4
PNG from surface to base
BANFF
TWP 56-RGE 6-W5M 3,9,10
PNG from base BELLY RIVER to
base BANFF
TWP 56-RGE 6-W5M 5,6
PNG from surface to base
BANFF
TWP 56-RGE 7-W5M 1
PNG from surface to base
NORDEGG
TWP 54-RGE 7-W5M 21
PNG from surface to base
BASEMENT
TWP
S29,NE29,S30,NW30
PNG from surface to base
BASEMENT
7-W5M
55-RGE
Tract 2
TWP 55-RGE 7-W5M NE30
PNG from surface to base
BASEMENT
Excluding PNG
MANNVILLE
MANNVILLE
top
base
from
to
55-RGE
6-W5M
Tract 3
TWP 55-RGE 7-W5M NW29
PNG from base MANNVILLE to
base BASEMENT
TWP
29,30,31,32
PNG from surface to base
MANNVILLE
PNG from base NORDEGG to
base BASEMENT
TWP 56-RGE 6-W5M 7
TWP 56-RGE 7-W5M 2,11,12
PNG from surface to base
BASEMENT
TWP 54-RGE 7-W5M 17,20
PNG from surface to base
BASEMENT
TWP 56-RGE 7-W5M 31
PNG from surface to base
Active
WI %
20.00
20.00
20.00
20.00
15.00
20.00
20.00
20.00
20.00
20.00
20.00
18.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
2018 ANNUAL REPORT
Page | 74
WHITEBARK ENERGY LTD
Permits
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Paddle River
5497100192
Paddle River
Freehold
Paddle River
Freehold
Paddle River
Freehold
Thorsby
0494100828
Thornbury
0178050155
Thornbury
0179040029
Thornbury
0179040029
Thornbury
0179040029
Thornbury
0179040029
Thornbury
0500110212
Thornbury
0505060901
Thornbury
0505080596
Thornbury
0505080599
Thornbury
0506070714
Thornbury
0507010387
Thornbury
0507010388
Thornbury
0514120033
Thornbury
0517110127
Thornbury
0585050215
Thornbury
0585050217
Thornbury
0585050411
Thornbury
0586010365
Thornbury
0586010365
82-RGE
14-W4M
NORDEGG
TWP 55-RGE 7-W5M NW29
PNG from top SURFACE to base
MANNVILLE
Excluding CBM
TWP 56-RGE 7-W5M SW5
PNG from top SURFACE to base
OSTRACOD
TWP 56-RGE 7-W5M SE5
PNG from top SURFACE to base
OSTRACOD
TWP 59-RGE 6-W5M SE4
PNG from surface to base
NORDEGG
TWP 50-RGE 3-W5M N17
TWP 50-RGE 3-W5M 17(LSD 5-
8)
PNG from surface to base
BELLY RIVER
TWP 78-RGE 13-W4M 25
PNG from surface to base
MANNVILLE
TWP 82-RGE 14-W4M NE17
PNG from surface to base
MANNVILLE
TWP 82-RGE 14-W4M 27
PNG from surface to base
MANNVILLE
TWP 82-RGE 14-W4M 15,16
PNG from surface to base
MANNVILLE
TWP
NW17,S17,21,22,28
PNG from surface to base
MANNVILLE
TWP 79-RGE 13-W4M 25
PNG from surface to base
MANNVILLE
TWP 80-RGE 14-W4M 23
PNG from surface to base
MANNVILLE
TWP 78-RGE 14-W4M 33
PNG from surface to base
MANNVILLE
TWP 78-RGE 15-W4M 36
PNG from surface to base
MANNVILLE
TWP 77-RGE 14-W4M 20
PNG from surface to base
MANNVILLE
TWP 79-RGE 15-W4M 16
PNG from surface to base
MANNVILLE
TWP 79-RGE 15-W4M 17
PNG from surface to base
MANNVILLE
TWP 78-RGE 14-W4M 21,27
PNG from base MANNVILLE to
base BASEMENT
TWP 80-RGE 15-W4M 15
PNG from surface to base
BASEMENT
TWP 80-RGE 13-W4M 1
PNG from surface to base
MANNVILLE
TWP 80-RGE 13-W4M 12
PNG from surface to base
MANNVILLE
TWP 76-RGE 10-W4M 36
TWP 76-RGE 9-W4M S20
PNG from surface to base
MANNVILLE
TWP 80-RGE 13-W4M 16
PNG from surface to base
MANNVILLE
TWP 80-RGE 13-W4M 21
PNG from surface to base
MANNVILLE
Active
WI %
20.00
20.00
Thornbury
0586030342
Thornbury
0586030343
20.00
Thornbury
0586030344
15
20.00
20.00
10.00
10.00
10.00
10.00
16.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
4.00
4.00
1.25
2.00
2.00
Thornbury
0586030344
Thornbury
0587070166
Thornbury
0589050395
Thornbury
058905A395
Thornbury
058905A395
Thornbury
0589120202
Thornbury
0590010409
Thornbury
0590010419
Thornbury
0590060342
Thornbury
0590060343
Thornbury
0590100432
Thornbury
0591050533
Thornbury
0591050534
Thornbury
0591050535
Thornbury
0593030387
Thornbury
0593030387
Thornbury
0593030391
Thornbury
0593040701
Thornbury
0593040701
Thornbury
0593050473
Thornbury
0593060378
Thornbury
0593060380
TWP 80-RGE 14-W4M 2
PNG from surface to base
MANNVILLE
Excluding WELLBORE
TWP 80-RGE 14-W4M 10,11
PNG from surface to base
MANNVILLE
Excluding WELLBORE
TWP 80-RGE 14-W4M 13
PNG from surface to base
MANNVILLE
TWP 80-RGE 14-W4M 12
PNG from surface to base
MANNVILLE
TWP 79-RGE 14-W4M 27
PNG from surface to base
MANNVILLE
TWP 80-RGE 13-W4M 3
PNG from surface to base
MANNVILLE
TWP 80-RGE 13-W4M 9
PNG from surface to base
MANNVILLE
TWP 80-RGE 13-W4M 4,10
PNG from surface to base
MANNVILLE
TWP 80-RGE 14-W4M 19
PNG from surface to base
MANNVILLE
Excluding WELLBORE
TWP 79-RGE 13-W4M 23
PNG from surface to base
MANNVILLE
TWP 80-RGE 14-W4M 30
PNG from surface to base
MANNVILLE
TWP 80-RGE 12-W4M 4
PNG from surface to base
MANNVILLE
TWP 80-RGE 12-W4M 5
PNG from surface to base
MANNVILLE
TWP 82-RGE 13-W4M 3
PNG from surface to base
MANNVILLE
TWP 80-RGE 15-W4M 24
PNG from surface to base
MANNVILLE
TWP 80-RGE 15-W4M 25
PNG from surface to base
MANNVILLE
TWP 80-RGE 15-W4M 36
PNG from surface to base
MANNVILLE
TWP 79-RGE 15-W4M 4
PNG from surface to base
MANNVILLE
TWP 79-RGE 15-W4M 3
PNG from surface to base
MANNVILLE
TWP 78-RGE 15-W4M 35
PNG from surface to base
MANNVILLE
TWP 78-RGE 15-W4M 27
PNG from surface to base
MANNVILLE
TWP
26,28,33,34
PNG from surface to base
MANNVILLE
TWP 78-RGE 15-W4M 22,23
PNG from surface to base
MANNVILLE
TWP 79-RGE 12-W4M 17
PNG from surface to base
MANNVILLE
TWP 79-RGE 12-W4M 27
PNG from surface to base
15-W4M
78-RGE
Active
WI %
4.50
17.00
14.75
17.00
20.00
4.00
4.00
4.00
6.75
4.00
6.75
4.00
4.00
10.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
4.00
4.00
2018 ANNUAL REPORT
Page | 75
WHITEBARK ENERGY LTD
Permits
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Active
WI %
Thornbury
0593060381
Thornbury
0593060383
Thornbury
0593070520
Thornbury
0593070520
Thornbury
0593090784
Thornbury
0593090784
Thornbury
0594060666
Thornbury
0594110276
Thornbury
0595010782
Thornbury
0595010787
Thornbury
0595010787
Thornbury
0595060345
Thornbury
0595070450
Thornbury
0595090673
Thornbury
0595090673
Thornbury
0595110408
Thornbury
0595110411
Thornbury
0595110488
Thornbury
0596010191
Thornbury
0596060259
Thornbury
23015A
Thornbury
29993
Thornbury
39567
MANNVILLE
TWP 79-RGE 12-W4M 29
PNG from surface to base
MANNVILLE
TWP 79-RGE 13-W4M 26
PNG from surface to base
MANNVILLE
TWP 78-RGE 15-W4M 21
PNG from surface to base
MANNVILLE
TWP 78-RGE 15-W4M 29,32
PNG from surface to base
MANNVILLE
TWP 79-RGE 13-W4M 34
PNG from surface to base
MANNVILLE
TWP 79-RGE 13-W4M 27
PNG from surface to base
MANNVILLE
TWP 79-RGE 12-W4M 8
PNG from surface to base
BASEMENT
TWP 79-RGE 13-W4M 14
PNG from surface to base
MANNVILLE
TWP 79-RGE 15-W4M 9
PNG from top MCMURRAY to
base MCMURRAY
TWP 80-RGE 16-W4M 25
PNG from surface to base
MANNVILLE
TWP 80-RGE 15-W4M 30,31
TWP 80-RGE 16-W4M 36
TWP 81-RGE 15-W4M 6
PNG from surface to base
MANNVILLE
TWP 79-RGE 12-W4M 3
PNG from surface to base
MCMURRAY
TWP 79-RGE 15-W4M 20
PNG from surface to base
MANNVILLE
TWP 79-RGE 14-W4M 18
TWP 79-RGE 15-W4M 25
PNG from surface to base
MANNVILLE
TWP
15,19,28,29,30
TWP
14,23,24,26
PNG from surface to base
MANNVILLE
TWP 79-RGE 14-W4M 6,7
PNG from surface to base
MANNVILLE
TWP 80-RGE 14-W4M 7
PNG from surface to base
MANNVILLE
TWP 80-RGE 15-W4M 23,35
PNG from surface to base
MANNVILLE
TWP 79-RGE 12-W4M 30
PNG from surface to base
MANNVILLE
TWP 79-RGE 12-W4M 2
PNG from surface to base
MCMURRAY
TWP 78-RGE 15-W4M 4
PNG from surface to base
MANNVILLE
TWP 79-RGE 15-W4M 9
PNG from surface to base
MANNVILLE
Excluding PNG
MCMURRAY
MCMURRAY
TWP 77-RGE 9-W4M 6
PNG from surface to base
top
base
14-W4M
15-W4M
79-RGE
79-RGE
from
to
4.00
Thornbury
39586
4.00
Thornbury
39586
20.00
Thornbury
5494100161
20.00
4.00
4.00
4.00
4.00
20.00
Thornbury
5494100161
Thornbury
5494100161
Thornbury
5495080116
Thornbury
5495090143
Thornbury
5495090143
20.00
Thornbury
5495090144
20.00
Thornbury
5495090144
16.00
20.00
20.00
20.00
Thornbury
5495090144
Thornbury
5495100048
Thornbury
5495100049
Thornbury
5495100050
Thornbury
5495100052
20.00
Thornbury
5495100054
20.00
20.00
Thornbury
5495100055
16.00
Thornbury
5495100160
16.00
3.33
20.00
1.07
Thornbury
5495100161
Thornbury
5495100161
Thornbury
5495100161
Thornbury
5495110058
Thornbury
5498010077
MANNVILLE
TWP 80-RGE 18-W4M 24
PNG from surface to base
GROSMONT
TWP 80-RGE 18-W4M 13,14,23
PNG from surface to base
GROSMONT
TWP 77-RGE 14-W4M 19
PNG from surface to base
MCMURRAY
Excluding CBM
TWP 77-RGE 14-W4M 30
PNG from surface to base
MCMURRAY
Excluding CBM
TWP 77-RGE 15-W4M 25
PNG from surface to base
MANNVILLE
TWP 80-RGE 16-W4M 35
PNG from surface to base
MANNVILLE
TWP 79-RGE 14-W4M 5
PNG from surface to base
MANNVILLE
TWP 79-RGE 15-W4M 1
TWP 79-RGE 14-W4M 3,4
PNG from surface to base
MANNVILLE
TWP 80-RGE 15-W4M 20
PNG from surface to base
MANNVILLE
TWP 80-RGE 15-W4M 19
PNG from surface to base
MANNVILLE
TWP 80-RGE 15-W4M 11
PNG from surface to base
MANNVILLE
TWP 77-RGE 14-W4M 9,17
PNG from surface to base
MANNVILLE
Excluding CBM
TWP 77-RGE 14-W4M 18
PNG from surface to base
MANNVILLE
Excluding CBM
TWP 77-RGE 14-W4M 35
PNG from surface to base
MANNVILLE
Excluding CBM
TWP 78-RGE 14-W4M 16
PNG from surface to base
MANNVILLE
TWP 78-RGE 14-W4M 26
PNG from surface to base
MCMURRAY
Excluding CBM
TWP 78-RGE 15-W4M 13,14
PNG from surface to base
MANNVILLE
Excluding CBM
14-W4M
81-RGE
TWP
4,5,6,7,8,9,16,18
PNG from surface to base
MANNVILLE
TWP 81-RGE 15-W4M 12
PNG from surface to base
MANNVILLE
TWP 81-RGE 15-W4M 13
PNG from surface to base
MANNVILLE
TWP 81-RGE 15-W4M 10
PNG from surface to base
MANNVILLE
TWP 81-RGE 15-W4M 24
PNG from surface to base
MANNVILLE
TWP 80-RGE 14-W4M 31
Active
WI %
1.60
1.60
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
2018 ANNUAL REPORT
Page | 76
WHITEBARK ENERGY LTD
Permits
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Whitecourt
0500060518
Whitecourt
0500110822
Whitecourt
0501030376
Whitecourt
0501060447
Whitecourt
0501080238
Whitecourt
0506010361
Whitecourt
0507010723
Whitecourt
0577020072
Whitecourt
0577020073
Whitecourt
0578080151
Whitecourt
0578090138
Whitecourt
0578090138
Whitecourt
0588100423
Whitecourt
0589050108
Whitecourt
0590040492
Whitecourt
0593110766
Whitecourt
0594120281
Whitecourt
0594120282
Whitecourt
0595040193
60-RGE
60-RGE
11-W5M
11-W5M
from base BLUESKY-
PNG from surface to base
MANNVILLE
TWP 60-RGE 11-W5M N10
NG from top PEKISKO to base
PEKISKO
NG from top JURASSIC to base
JURASSIC
TWP 63-RGE 10-W5M 26
PNG from surface to base
VIKING
TWP 60-RGE 11-W5M 24
PNG from surface to base
PEKISKO
TWP
S13,NE13
PNG from surface to base
BELLY RIVER
TWP 60-RGE 10-W5M 7
PNG from base NORDEGG to
base PEKISKO
TWP 63-RGE 20-W5M 5
PNG
BULLHEAD to top DOIG
TWP
S13,NE13
PNG from base BELLY RIVER to
base MANNVILLE
TWP 60-RGE 11-W5M S15
PNG from surface to base
PEKISKO
Excluding CBM from surface to
base BASEMENT
TWP 60-RGE 11-W5M SE16
NG from top NORDEGG to base
NORDEGG
NG from top PEKISKO to base
PEKISKO
CBM from surface to base
PEKISKO
TWP 60-RGE 10-W5M SE7
PNG from surface to base
NORDEGG
TWP 59-RGE 10-W5M SW15
PNG from surface to base
NORDEGG
Excluding PNG
MANNVILLE
MANNVILLE
TWP 59-RGE 10-W5M E15
PNG from surface to base
NORDEGG
Excluding PNG
MANNVILLE
MANNVILLE
TWP 58-RGE 21-W5M NW23
PNG from surface to base
CARDIUM
TWP 59-RGE 10-W5M SE9
PNG from surface to base
MANNVILLE
Excluding CBM
TWP 59-RGE 10-W5M 1
PNG from surface to base
NORDEGG
TWP 64-RGE 15-W5M 26,35
PNG from surface to base
BLUESKY-BULLHEAD
TWP 59-RGE 10-W5M 3
PNG from surface to base
PEKISKO
Excluding WELLBORE
TWP 59-RGE 10-W5M 10
PNG from top JURASSIC to base
JURASSIC
CBM from surface to base
PEKISKO
WELLBORE ONLY
TWP 64-RGE 14-W5M 26
top
base
top
base
from
from
to
to
Active
WI %
7.50
10.00
10.00
Whitecourt
0596010415
Whitecourt
0597030792
5.00
Whitecourt
0597040244
10.00
10.00
1.25
2.45
Whitecourt
0597070666
Whitecourt
111573
Whitecourt
111573
Whitecourt
111573
4.20
Whitecourt
111574
Whitecourt
111575
10.00
Whitecourt
1183
10.00
Whitecourt
1183
10.00
16.00
Whitecourt
1183
1.20
Whitecourt
1183
Whitecourt
1183
Whitecourt
1183
10.00
10.00
4.00
Whitecourt
1184
Whitecourt
1184
Whitecourt
1184
Whitecourt
11916
4.00
20.00
to
to
from
from
59-RGE
10-W5M
top
base
top
base
PNG from surface to base
BLUESKY-BULLHEAD
Excluding CBM
MANNVILLE
MANNVILLE
TWP 60-RGE 11-W5M NE32
PNG from base NORDEGG to
base PEKISKO
TWP 60-RGE 11-W5M S10
NG from top PEKISKO to base
PEKISKO
NG from top JURASSIC to base
JURASSIC
TWP 61-RGE 10-W5M 21
PNG from surface to base
PEKISKO
TWP 58-RGE 11-W5M 32
PNG from surface to base
PEKISKO
TWP 59-RGE 10-W5M NW15
PNG from surface to base
NORDEGG
Excluding PNG
MANNVILLE
MANNVILLE
TWP 59-RGE 10-W5M SW22
PNG from surface to base
NORDEGG
TWP
NE16,SE21
PNG from surface to base
PEKISKO
TWP 59-RGE 10-W5M N20
PNG from surface to base
PEKISKO
Excluding CBM
TWP 59-RGE 10-W5M N21
PNG from surface to base
PEKISKO
TWP 59-RGE 10-W5M NE9
NG from top JURASSIC to base
JURASSIC
TWP 59-RGE 10-W5M S4,NE4
NG from top JURASSIC to base
JURASSIC
NG from top PEKISKO to base
PEKISKO
Excluding CBM from surface to
base BASEMENT
Excluding NG
NORDEGG to base NORDEGG
TWP
60-RGE
S13,NE13
NG from top PEKISKO to base
PEKISKO
NG from top JURASSIC to base
JURASSIC
TWP 59-RGE 10-W5M S5
NG from top JURASSIC to base
JURASSIC
TWP 59-RGE 10-W5M S6
NG from top JURASSIC to base
JURASSIC
TWP
N32,SE32
NG from top JURASSIC to base
JURASSIC
TWP 59-RGE 10-W5M SE9
NG from top JURASSIC to base
JURASSIC
TWP 60-RGE 11-W5M N34
NG from top JURASSIC to base
JURASSIC
TWP 60-RGE 11-W5M N35
NG from top JURASSIC to base
JURASSIC
TWP 58-RGE 11-W5M 35
PNG from surface to base
11-W5M
10-W5M
58-RGE
from
top
Active
WI %
2.25
7.50
2.00
10.00
10.00
10.00
10.00
4.00
10.00
4.00
4.00
5.00
10.00
10.00
10.00
4.00
10.00
10.00
10.00
2018 ANNUAL REPORT
Page | 77
WHITEBARK ENERGY LTD
Permits
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Whitecourt
120105
Whitecourt
120106
Whitecourt
120106B
Whitecourt
120106B
Whitecourt
120107
Whitecourt
120108
Whitecourt
124127
Whitecourt
1262
Whitecourt
1263
Whitecourt
1264
Whitecourt
1264
Whitecourt
127739
Whitecourt
127754
Whitecourt
127754
PEKISKO
TWP 60-RGE 11-W5M SW8
NG from top NORDEGG to base
NORDEGG
CBM from surface to base
NORDEGG
TWP 60-RGE 11-W5M E17
PNG from top NORDEGG to
base NORDEGG
TWP 60-RGE 11-W5M E8
NG from top NORDEGG to base
NORDEGG
CBM from surface to base
NORDEGG
TWP 60-RGE 11-W5M W16
NG from top NORDEGG to base
NORDEGG
NG from top PEKISKO to base
PEKISKO
CBM from surface to base
PEKISKO
TWP 60-RGE 11-W5M E20
NG from top NORDEGG to base
NORDEGG
CBM from top PEKISKO to base
PEKISKO
Excluding WELLBORE
TWP 60-RGE 11-W5M SW21
PNG from surface to top BASAL
QUARTZ
Excluding CBM
TWP 59-RGE 12-W5M 26
NG from top NORDEGG to base
NORDEGG
TWP
SE10,NW22
TWP
S28,NW28
LOWER
NG
MANNVILLE to base LOWER
MANNVILLE
NG from top NORDEGG to base
NORDEGG
NG from top PEKISKO to base
PEKISKO
TWP 59-RGE 12-W5M E22
NG from top NORDEGG to base
NORDEGG
TWP 59-RGE 12-W5M S25
NG from top PEKISKO to base
PEKISKO
12-W5M
11-W5M
59-RGE
59-RGE
from
top
TWP 59-RGE 12-W5M N24
TWP 59-RGE 11-W5M SW30
NG from top PEKISKO to base
PEKISKO
TWP 59-RGE 12-W5M 35
TWP 60-RGE 12-W5M 2
PNG from surface to base
NORDEGG
Excluding NG
NORDEGG to base NORDEGG
Excluding NG from top LOWER
MANNVILLE to base LOWER
MANNVILLE
from
top
Tract 2
TWP 60-RGE 12-W5M E3
PNG from surface to base
NORDEGG
TWP 60-RGE 11-W5M S7
PNG from surface to base
PEKISKO
Excluding NG from top PEKISKO
to base PEKISKO
Excluding NG
NORDEGG to base NORDEGG
TWP 60-RGE 11-W5M 6
from
top
Active
WI %
4.20
4.2
4.20
4.20
Whitecourt
16143
Whitecourt
16143
Whitecourt
16143A
Whitecourt
18323
Whitecourt
21400
4
Whitecourt
21400
Whitecourt
21400
7.42
5.00
8.49
Whitecourt
21400
Whitecourt
21401
7.13
Whitecourt
27886
Whitecourt
2985
Whitecourt
36939
Whitecourt
37822
Whitecourt
38001
Whitecourt
38001
Whitecourt
38477
Whitecourt
38477
Whitecourt
38477
Whitecourt
38477
8.54554
2
8.31
4.44
8.31
8.31
top
top
from
from
58-RGE
60-RGE
11-W5M
11-W5M
TWP 59-RGE 11-W5M E31
NG from top PEKISKO to base
PEKISKO
NG from top NORDEGG to base
NORDEGG
TWP 60-RGE 11-W5M N11
PNG from surface to base
PEKISKO
TWP
N12,SE12,S14
PNG from surface to base
PEKISKO
TWP 60-RGE 10-W5M N7,SW7
PNG from surface to base
NORDEGG
TWP
S25,NW25
PNG from top SURFACE to base
NORDEGG
TWP 59-RGE 12-W5M NE10
PNG from surface to base
UPPER MANNVILLE
TWP 59-RGE 12-W5M E15
PNG from surface to base
UPPER MANNVILLE
TWP 59-RGE 12-W5M W11
PNG from surface to base
NORDEGG
Excluding NG
NORDEGG to base NORDEGG
TWP 59-RGE 12-W5M W14
CBM
UPPER
MANNVILLE to base UPPER
MANNVILLE
PNG from surface to base
NORDEGG
Excluding PNG from top UPPER
MANNVILLE to base UPPER
MANNVILLE
Excluding NG
NORDEGG to base NORDEGG
TWP
59-RGE
N23,SW23
NG from top NORDEGG to base
NORDEGG
TWP 59-RGE 10-W5M NW22
PNG from surface to base
NORDEGG
TWP 60-RGE 11-W5M W28
PNG from top PEKISKO to base
PEKISKO
TWP 59-RGE 10-W5M SE16
PNG from surface to base
NORDEGG
TWP 60-RGE 11-W5M E1
PNG from surface to base
PEKISKO
Excluding NG
JURASSIC to base JURASSIC
TWP 58-RGE 10-W5M SW32
PNG from surface to base
NORDEGG
TWP 58-RGE 11-W5M NE25
PNG from top SURFACE to base
NORDEGG
TWP 60-RGE 12-W5M S13
PNG from surface to base
LOWER MANNVILLE
TWP 60-RGE 12-W5M NE11
PET
NORDEGG
TWP 60-RGE 12-W5M SE14
PNG
LOWER
MANNVILLE to base NORDEGG
Excluding NG
top
NORDEGG to base NORDEGG
TWP 60-RGE 12-W5M N12
from surface
NG
from surface to base
to base
12-W5M
from
from
from
from
base
top
top
Active
WI %
6.00
10.00
10.00
10.00
5.00
5.00
10.00
10.00
10.00
10.00
5
10.00
10.00
10.00
10.00
5.00
10.00
10.00
10.00
2018 ANNUAL REPORT
Page | 78
WHITEBARK ENERGY LTD
Permits
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Active
WI %
Whitecourt
38479
Whitecourt
38479
Whitecourt
38480
Whitecourt
38481
Whitecourt
38482
Whitecourt
38482
Whitecourt
38482
Whitecourt
38504
Whitecourt
38504
Whitecourt
38505
Whitecourt
38505
Whitecourt
38505
Whitecourt
38507
Whitecourt
38507
Whitecourt
38508
Whitecourt
38508
Whitecourt
38508
top
top
from
10-W5M
SURFACE
TWP 59-RGE 10-W5M 8
PNG from surface to base
PEKISKO
TWP 59-RGE 10-W5M 8
TWP 59-RGE 10-W5M 7
CBM from surface to base
PEKISKO
NG from top NORDEGG to base
NORDEGG
TWP 59-RGE 10-W5M NW4
PNG from base MANNVILLE to
base PEKISKO
Excluding NG
NORDEGG to base NORDEGG
Excluding CBM from surface to
base BASEMENT
TWP 59-RGE 10-W5M E22
PNG from surface to base
NORDEGG
TWP 59-RGE 10-W5M W9
NG from top PEKISKO to base
PEKISKO
TWP 59-RGE 10-W5M S20
PNG from surface to base
PEKISKO
Excluding CBM from surface to
base BASEMENT
TWP
59-RGE
W16,17,SW21
PNG from surface to base
PEKISKO
TWP 59-RGE 12-W5M N25
NG from top BELLY RIVER to
base BELLY RIVER
NG
LOWER
from
MANNVILLE to base LOWER
MANNVILLE
TWP
NW30,W31
TWP 59-RGE 12-W5M 36
NG
LOWER
MANNVILLE to base LOWER
MANNVILLE
NG from top PEKISKO to base
PEKISKO
NG from top NORDEGG to base
NORDEGG
TWP 59-RGE 12-W5M W10
PNG from surface to base
UPPER MANNVILLE
TWP 59-RGE 12-W5M W15
PNG from surface to base
UPPER MANNVILLE
TWP 59-RGE 12-W5M SW22
PNG from surface to base
PEKISKO
Excluding NG from top LOWER
MANNVILLE to base LOWER
MANNVILLE
Excluding NG
NORDEGG to base NORDEGG
Excluding NG from top PEKISKO
to base PEKISKO
TWP 59-RGE 10-W5M N5
PNG from top SURFACE to base
PEKISKO
TWP 59-RGE 10-W5M N6
PNG from base EDMONTON
SANDSTONE to base NORDEGG
TWP 60-RGE 11-W5M SW12
PNG from surface to base
PEKISKO
TWP 60-RGE 11-W5M NW1
PNG from surface to base
PEKISKO
TWP 60-RGE 11-W5M S11
PNG from surface to base
11-W5M
59-RGE
from
from
top
top
4.00
Whitecourt
38509
Whitecourt
Whitecourt
38509
38509
Whitecourt
38509
Whitecourt
38509
Whitecourt
38509
Whitecourt
38510
Whitecourt
38510
Whitecourt
Whitecourt
38510
38510
Whitecourt
38510
Whitecourt
38510
Whitecourt
38510
Whitecourt
38510
Whitecourt
38510
Whitecourt
38510
Whitecourt
38511
Whitecourt
38766
10.00
4.00
10.00
1.20
4.00
10.00
8.54554
2
10.00
5.00
5.00
10.00
10.00
10.00
10.00
10.00
6.00
PEKISKO
TWP 60-RGE 11-W5M NW8
NG from top NORDEGG to base
NORDEGG
CBM from surface to base
NORDEGG
TWP 60-RGE 11-W5M W20
WELLBORE PROD
TWP 60-RGE 11-W5M W17
PNG from top NORDEGG to
base NORDEGG
TWP 60-RGE 11-W5M SW29
CBM from base NORDEGG to
base PEKISKO
PNG from base NORDEGG to
base PEKISKO
TWP 60-RGE 11-W5M N7
NG from top NORDEGG to base
NORDEGG
TWP 60-RGE 11-W5M 18
PNG from surface to base
NORDEGG
TWP 60-RGE 11-W5M NW13
PNG from base BELLY RIVER to
base MANNVILLE
TWP 60-RGE 11-W5M NE16
CBM from surface to base
PEKISKO
NG from top NORDEGG to base
NORDEGG
NG from top PEKISKO to base
PEKISKO
TWP 60-RGE 11-W5M N15
WELLBORE PROD
TWP 60-RGE 11-W5M E21
PNG from top BASAL QUARTZ
to base PEKISKO
Excluding CBM
TWP 60-RGE 11-W5M E28
PNG from top PEKISKO to base
PEKISKO
TWP 60-RGE 11-W5M W26
PNG from surface to base
PEKISKO
Excluding PNG from top BELLY
RIVER to base BELLY RIVER
TWP 60-RGE 11-W5M E26
PNG from surface to base
PEKISKO
Excluding PNG from top BELLY
RIVER to base BELLY RIVER
TWP 60-RGE 11-W5M N14
PNG from surface to base
PEKISKO
TWP 60-RGE 11-W5M 22
PNG from surface to base
PEKISKO
60-RGE
11-W5M
Tract 2
TWP 60-RGE 11-W5M S35
PNG from surface to base
NORDEGG
TWP
23,27,SE33,S34
PNG from surface to base
PEKISKO
TWP 60-RGE 11-W5M 19
PNG from base MANNVILLE to
base PEKISKO
TWP 59-RGE 12-W5M NE14
PNG from surface to base
NORDEGG
Excluding NG
NORDEGG to base NORDEGG
Excluding PNG from top UPPER
MANNVILLE to base UPPER
MANNVILLE
from
top
Active
WI %
4.20
4
4.2
10.00
9.12599
3
10.00
1.2
4.20
2.45
2.78
5
10.00
10.00
10.00
10.00
10.00
1.28
7.50
2018 ANNUAL REPORT
Page | 79
WHITEBARK ENERGY LTD
Permits
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Area
Lessor/Crown #
CANADIAN LICENCES
Rights Held
Whitecourt
38766
Whitecourt
38767
Whitecourt
38768
Whitecourt
38768
Whitecourt
5408090493
Whitecourt
5408090493
Whitecourt
5414110077
Whitecourt
5496080102
Whitecourt
5496080102
Whitecourt
5496080102
Whitecourt
5496120022
Whitecourt
931
top
top
from
from
12-W5M
11-W5M
12-W5M
Excluding CBM from surface to
base NORDEGG
TWP
59-RGE
NE12,E13,NW13,SE23,S24
TWP 59-RGE 11-W5M 7,18,S19
PNG from surface to base
NORDEGG
Excluding CBM from surface to
base NORDEGG
Excluding NG
NORDEGG to base NORDEGG
TWP
59-RGE
NE28,E33
NG from top PEKISKO to base
PEKISKO
TWP 59-RGE 12-W5M SE14
PNG
UPPER
MANNVILLE to base UPPER
MANNVILLE
Excluding CBM
TWP
59-RGE
E11,NW12,S12,SW13,SE14
NG from top NORDEGG to base
NORDEGG
TWP 63-RGE 20-W5M 8
PNG
BULLHEAD to top DOIG
TWP 63-RGE 20-W5M 17,19,20
PNG
from base BLUESKY-
BULLHEAD to base TRIASSIC
TWP 65-RGE 15-W5M 9,16
PNG from base GILWOOD to
base BASEMENT
TWP 60-RGE 10-W5M 16
PNG from surface to base
MANNVILLE
TWP 60-RGE 10-W5M 9
PNG from surface to base
MANNVILLE
TWP 60-RGE 10-W5M 10
PNG from surface to base
MANNVILLE
TWP 61-RGE 10-W5M 16
PNG from surface to base
PEKISKO
Excluding WELLBORE PROD
TWP 60-RGE 12-W5M SE12
NG from top PEKISKO to base
PEKISKO
from base BLUESKY-
Active
WI %
7.50
10.00
9.50892
5
8.57143
Whitecourt
931
Whitecourt
Whitecourt
Whitecourt
Whitecourt
931
931
932
933
10.00
Whitecourt
934A
20.00
20.00
Whitecourt
934A
Whitecourt
935
Whitecourt
Freehold
1.60
1.60
3.33
4.00
8.31
Active
WI %
8.31
8.31
8.31
8.31
8.31
8.54554
2
8.31
8.31
10.00
top
from
TWP 59-RGE 11-W5M W32
NG from top NORDEGG to base
NORDEGG
NG from top PEKISKO to base
PEKISKO
TWP 59-RGE 11-W5M 29,SE32
NG from top PEKISKO to base
PEKISKO
TWP 60-RGE 12-W5M 1,SW12
NG from top PEKISKO to base
PEKISKO
NG from top NORDEGG to base
NORDEGG
NG
LOWER
MANNVILLE to base LOWER
MANNVILLE
TWP 59-RGE 11-W5M N19
NG from top NORDEGG to base
NORDEGG
TWP 59-RGE 11-W5M E30
NG from top NORDEGG to base
NORDEGG
NG from top PEKISKO to base
PEKISKO
TWP 59-RGE 12-W5M S25
NG from top BELLY RIVER to
base BELLY RIVER
LOWER
from
NG
MANNVILLE to base LOWER
MANNVILLE
TWP 59-RGE 12-W5M N24
TWP 59-RGE 11-W5M SW30
NG from top NORDEGG to base
NORDEGG
TWP
NE32,W33
TWP 60-RGE 11-W5M W4,5
NG from top PEKISKO to base
PEKISKO
TWP 60-RGE 12-W5M SE2
NG
LOWER
MANNVILLE to base LOWER
MANNVILLE
NG from top NORDEGG to base
NORDEGG
NG from top PEKISKO to base
PEKISKO
11-W5M
59-RGE
from
top
top
2018 ANNUAL REPORT
Page | 80
Level 2, 6 Thelma Street, West Perth, WA 6025
Phone: 08 6555 6000
www.whitebarkenergy.com