Whitebark Energy
Annual Report 2019

Plain-text annual report

WHITEBARK ENERGY LIMITED (ASX:WBE) Annual Report 30 June 2019 ABN 68 079 432 796 WHITEBARK ENERGY LTD - Annual Financial Report 30 June 2019 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 2 3 4 6 9 17 18 22 23 24 25 26 57 58 60 2019 ANNUAL REPORT Page | 1 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 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 2019 ANNUAL REPORT Page | 2 WHITEBARK ENERGY LTD Chairman’s Letter Dear Fellow Shareholders, I am very pleased to be able to report that the 2018/2019 year has been an exciting one for Whitebark Energy. Its discovery and bringing into production of the Wizard Lake Oilfield has proven the strategy of its acquisition of a 20% interest in the Point Loma Joint Venture in Alberta, Canada. Whitebark announced the identification of Wizard Lake early in the year along with an entitlements issue to shareholders and a placement which raised $2.33 million before costs. Given the Board’s view of the potential at Wizard Lake it decided to sell the Company’s interest in TP-15 and the Xanadu discovery. The interest was sold to Triangle Energy for up to $5 million - $2 million in cash and $1 million in Triangle shares and potential milestone payments of $1 million each on Appraisal and First Oil. The Rex-1 well was spud on November 24th and was completed in a 1,200 metre lateral on December 12th and was tested at over 300 barrels of oil per day (bbl/d) in January 2019. Given the land holding, at the time, over the Wizard Lake Oilfield there was seen to be potential for up to a 14 well development. Whitebark then negotiated a farm in to the Wizard Lake Oilfield whereby it would earn an additional 10% in the field for each of two wells it drilled in 2019. Meanwhile Rex-1 was brought onto production on 5th June 2019. Since the end of the quarter Rex-2 has been drilled and tested. It spud on 27th July 2019 and was drilled with a horizontal section of 1,600 m in eight days. Rex-2 has now tested at a restricted peak rate of 865 barrels of oil equivalent per day (BOE/d), (560 bbl/d and 2.0 million cubic feet per day (MMcf/d) of gas). Unlike Rex-1 and other similar wells in the area, this rate was achieved under natural flow. Whitebark also acquired further land over the Wizard Lake Oilfield during the year and there is now potential for a 20 well development. It is important to note that Whitebark has been the operator of the Rex wells. This is the first time it has operated in Canada and the wells have come in under budget. I would like to thank everyone involved for a great year and we look forward to more success to come. Yours sincerely, Charles W Morgan Chairman 2019 ANNUAL REPORT Page | 3 WHITEBARK ENERGY LTD Review of Operations 1 Review of Operations 1.1 Overview During the 2019 financial year the Company produced 104,684 barrels of oil equivalent (BOE), increased 2P oil reserves by 59%, drilled an oil discovery well at Rex-1 in the Wizard Lake area, Canada and agreed to a Farm In deal that will increase the Company’s working interest in Wizard Lake to 50% post Rex-3. Net production from the Canadian Joint Venture for the 2019 financial year was 14,948 barrels of oil (bbl) (up 39% from 2018), 9,236 barrels of NGL’s (bbl) (up 174% from 2018) and 483 MMcf of gas (up 5% from 2018) with gross revenue of $2.11 million dollars. Activities were focussed on the Company’s Wizard Lake Oil Discovery through additional wells and surface facility construction. Operations at Warro in Western Australia remain shut in due to the State Government Fraccing Inquiry outcome implementation. The Company is ready to restart activities when a clear process and guidelines are available, likely 2020. 1.2 Canadian Operations The Company plans to continue to grow its Canadian assets during FY 2020 through a combination of acquisitions and an active drilling program to develop the Wizard Lake Oil Discovery. 1.2.1 Acquisitions Following the initial acquisition of 320 acres through a Crown Auction in February 2018, the Canadian JV secured the rights over the Wizard Lake oil field through a private sale of 1,785 acres in November 2018, a further 640 acres in January and 640 acres in February 2019 for a total gross area of 3,385 acres as at 30 June 2019. The current acreage holding covers the field and provides the Company with a strong footprint by which to develop the field. A broader area encompassing the above acreage and some of the surrounding lands is subject to an Area of Mutual Interest and Right of First Refusal Agreement with Point Loma (PLX). 1.2.2 Wizard Lake Discovery and Development The Wizard Lake oil field is in the Leduc area, 25km SW of Edmonton. The presence of oil in the Cretaceous Rex sands had been confirmed but not exploited by previous wells in the area which were drilled to produce oil from much deeper Devonian Leduc reservoirs (mainly in the 1950/60s). 1.2.2.1 Rex-1 The first well (Rex-1) was drilled by PLX/WBE as a horizontal exploration well targeting the Cretaceous Rex sand at approximately 1410m Total Vertical Depth (TVD) and was spud on 24 November and finished drilling on 2 December 2018 (nine days inclusive). During drilling, the Rex sand showed strong oil staining, fluorescence with cut and elevated gas readings (four times background)1. The 27 stage frac commenced on 11 December 2018 and was completed less than 36 hours later, on 12 December. Due to the continuous nature of the reservoir in the horizontal section, the frac stages were evenly spaced along the well bore at approximately 45m apart. Each stage emplaced an average 26 tonnes of proppant, over 700 tonnes in total, into the Rex formation.2 (a) Test Results Flowback commenced on 23 December 2018 after a short delay3 and, as is the practice by other operators in the area, a high-volume, submersible pump was used to assist with the recovery of frac fluids and to optimise the oil recovery rate. At this time, the Company announced an increase in Working Interest to 30%, with an effective date of 31 December 2018. 1 ASX Release 29 November 2019 2 ASX Release 13 December 2018 3 ASX Release 17 and 24 December 2018 2019 ANNUAL REPORT Page | 4 WHITEBARK ENERGY LTD Review of Operations From 4th to 15th January 2019, the well was pumped continuously and displayed excellent inflow rates with total fluid rates averaging over 1120 bbl/d during the testing period. During this period, Rex-1 recorded production rates of 305 bbl/d of oil (with a GOR of approximately 2300) prior to the completion of testing and established the production capability of the reservoir. Accordingly, the Joint Venture determined the field was commercial and proceeded with the construction of production facilities and pipelines. Rex Well Testing Summary Well Location Net Pay Thickness Geological Rock Type and Formation Drilled Drilling Depth Type and Duration of Test Hydrocarbons Recovered Water/Load fluid recovered Choke Size Fracture Stimulations Material non hydrocarbon Gases Wizard Lake: 100/16-17-048-27W4 Not applicable - horizontal well Lower Manville Rex Sands 1415mTVD with 1237m horizontal section Produced with a submersible pump. Test duration approx. 18 days 1833 bbls Oil and 2MMcf Gas 18,680 bbls Not applicable, well under pump 27 stages averaging 26t proppant / stage Not material The modular production and processing facility is located 1.6km NW from the Rex-1 well and was completed in early June 2019 for a total cost of approximately A$750,000. Two 4” pipelines were installed to transport fluids from the well pad to the production facilities. Rex-1 production commenced using a downhole pump on 5 June 2019. During Q4, the Company finalised an arrangement to increase its interest to 50% in the entire Wizard Lake field by the drilling of two wells, Rex-2 and Rex-3. The Company will pay 100% of the costs of both wells and receive 75% of the well income until the carried costs have been recovered. 1.2.3 Exploration & Acquisition While the Company plans to focus on Wizard Lake activities during the 2019/20 financial year, other exploration and acquisition opportunities are being evaluated on an ongoing basis. 1.2.4 Reserves Growth The Reserve and Resources Statement below documents the Company’s Reserves to 30 June 2019 and represent a 56% and 59% increase in its Canadian 1P and 2P oil reserves to 305 Mbbl and 519.5 Mbbl respectively. Gas Reserves and associated liquids have reduced during the same period by 44% due to a significant reduction in commodity prices. 4 1.3 Western Australia 1.3.1 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). In September 2017, the West Australian State Government implemented a moratorium on fracking onshore in the state. The independent scientific inquiry was completed in Q2 and the WA Government undertook to implement all the Inquiry’s recommendations by developing and implementing additional approvals and regulations governing the hydraulic fracturing of exploration and production wells. The expected conclusion date for the implementation of these recommendations is the close of 2020. During this time, the Warro Project is in a shut in and suspended state under an approved environmental management plan. 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. 4 ASX Release 22 August 2019 2019 ANNUAL REPORT Page | 5 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 2019. Unless otherwise stated, all estimates are quoted as net WBE share.5 Reserves at 30 June 2019 Alberta, Canada Reserves at 30 June 2019 (Mbbl) Proved Crude Oil (1P) Mbbl Proved and Probable Crude Oil (2P) Mbbl Developed Undeveloped Total 97.8 206.7 304.5 130.1 389.4 519.5 Reserves Reconciliation (Mbbl) Proved Crude Oil (1P) Mbbl Proved and Probable Crude Oil (2P) Mbbl Reserves at 30 June 2018 Revisions and reclassifications Additions through acquisitions Production Reserves at 30 June 2019 Reserves at 30 June 2019 (MMcf) Developed Undeveloped Total Reserves Reconciliation (MMcf) Reserves at 30 June 2018 Revisions and reclassifications Additions through acquisitions Production Reserves at 30 June 2019 194.2 -5.5 129.6 -13.8 304.5 326.5 -15.8 222.6 -13.8 519.5 Proved Natural Gas (1P) MMcf Proved and Probable Natural Gas (2P) MMcf 2169.0 424.7 2593.7 3390.0 1333.7 4723.7 Proved Natural Gas (1P) MMcf Proved and Probable Natural Gas (2P) MMcf 4767.1 316.0 286.1 -2775.5 2593.7 8440.7 -1449.3 507.8 -2775.5 4723.7 5 Refer to ASX announcement 22 August 2019 2019 ANNUAL REPORT Page | 6 WHITEBARK ENERGY LTD Reserves and Resources Statement Reserves at 30 June 2019 (Mbbl) Developed Undeveloped Total Reserves Reconciliation (Mbbl) Reserves at 30 June 2018 Revisions and reclassifications Additions through acquisitions Production Reserves at 30 June 2019 Proved Natural Gas Liquids (1P) Mbbl Proved and Probable Natural Gas Liquids (2P) Mbbl 41.5 8.8 50.3 61 30.3 91.3 Proved Natural Gas Liquids (1P) Mbbl Proved and Probable Natural Gas Liquids (2P) Mbbl 135.4 -84.0 7.2 -8.3 50.3 302.9 -216.0 12.7 -8.3 91.3 Wizard Lake 30%WI – 3P Reserves at 30 June 2019 Gas MMcf 804 Total MBOE 419 Oil Mbbl 285 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 2019 – Gas Initially in Place (Tcf) Warro Field, Western Australia6 Contingent (status unclarified and on hold) Prospective 1C 2.4 Low 2.0 4.4 2C 3.2 Medium 4.1 7.3 Contingent (Wizard lake only) Wizard Lake MBOE Summary (WI 30%) – 30 June 20197 2C 1C Prospective (Wizard lake only) 750 1U 106 1281 2U 240 3C 4.5 High 7.3 11.6 3C 2491 3U 496 6 Refer to ASX announcement 19 November 2015 7 Refer to ASX announcement 22 August 2019 2019 ANNUAL REPORT Page | 7 WHITEBARK ENERGY LTD Reserves and Resources Statement Prospective Resource Estimates Cautionary Statement 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 significant quantity of potentially moveable hydrocarbons. Conversion of gas to BOE is done on the basis of 6Mcf = 1 BOE Reserves and Contingent Resource Estimates – Governance The Company maintains strong governance and internal controls in respect of its estimates of petroleum reserve and resource and the estimation process which is undertaken in accordance with the SPEE Petroleum Resources Management Guidelines. Oil and gas reserves are compiled by an independent Canadian petroleum consulting firm and overseen by an in house qualified petroleum reserves and resources evaluator. Qualified Petroleum Reserves and Resources Evaluator Statement The reserve, contingent and prospective resource estimates 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 Society of Australia, American Association of Petroleum Geologists. Mr Keenihan has consented to the inclusion of information in this annual 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 and resources 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 30 June 2019 1P and 2P Reserves evaluation was prepared by McDaniel and Associates in accordance with definitions, standards and procedures contained in the Canadian Oil and gas Evaluation Handbook and Standards of Disclosure for Oil and Gas Activities, published by the Society of Petroleum Evaluation Engineers (SPEE), a party to the Guidelines for Application of the Petroleum Resource Management System (PRMS - June 2018). The Wizard Lake 3P oil and gas Reserves and the Contingent and Prospective Resources information included in this report are based on, and fairly represent, information and supporting documentation prepared by Mr Keenihan. Mr Keenihan is a qualified reserves and resources evaluator in accordance with the requirements of ASX Listing Rule 5.41 and consents as to the form and context in which the estimated Wizard Lake 3P petroleum reserves, contingent resources and prospective resources and the supporting information are presented in this report. Warro Field, Western Australia The information 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. 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 and American Association of Petroleum Geologists. 2019 ANNUAL REPORT Page | 8 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 4 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 30 year period. The bulk of these were in the resources/oil & gas industries and in the technology sector. Mr Morgan is a former director of Grand Gulf Energy Limited having resigned on 5 March 2019. 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. 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 resigned from his position as a Non-Executive Director of Grand Gulf Energy Limited on 5 March 2019. 2019 ANNUAL REPORT Page | 9 WHITEBARK ENERGY LTD Directors’ Report Kevin 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. For the year ended 30 June 2019 no independent advice has been obtained in relation to compensation packages. The compensation structures explained below are designed to attract suitably qualified candidates, reward the achievement of strategic objectives, and achieve the broader outcome of creation of value for shareholders. The compensation structures take into account: • • • The capability and experience of the key management personnel; The key management personnel’s ability to control the relevant assets’ performance; The amount of incentives within each key management person’s compensation. Compensation packages may include a mix of fixed and variable compensation and short and long-term performance- based incentives. In addition to their salaries, the consolidated entity has also provided non-cash benefits to its key management personnel in the form of share-based payments. 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. 2019 ANNUAL REPORT Page | 10 WHITEBARK ENERGY LTD Directors’ Report 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. For the 100,000,000 related party options issued 3 July 2017, 41,333,333 vested immediately, 41,333,333 vested one year from date of issue and the balance of 17,333,334 vested two years from the date of issue. 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 $36,000pa On-going commencing 9 October 2015 $75,000pa On-going commencing 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. 2019 ANNUAL REPORT Page | 11 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 2019 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 179,200 441,860 - - 5,827 - 25,000 62,076 185,027 528,936 83,000 704,060 - - - 4,162 25,000 72,065 87,162 801,125 *Consists of $36,000 directors fees and $143,200 consultancy fees **Consists of $75,000 directors fees and $8,000 consultancy fees 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 Value of options as a proportion of remuneration 3% 12% 5% Value of options as a proportion of remuneration 50% 38% 57% *Consists of $36,000 directors fees and $138,400 consultancy fees **Consists of $75,000 directors fees and $16,000 consultancy fees 6 Equity Instruments 6.1 Options Granted as Compensation There were no options granted as compensation to key management personnel during the year ended 30 June 2019. During the year ended 30 June 2018 the following options were granted to key management personnel: 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: Unlisted Options Executive directors Stephen Keenihan David Messina Non-Executive Directors Charles Morgan Total Listed Options Executive directors Stephen Keenihan David Messina Non-Executive Directors Charles Morgan Total Balance at beginning of year 01-Jul-18 Granted as Remuneration Net Other Changes Balance at end of year 30-Jun-19 Total Not Exercisable 28,000,000 52,000,000 - - - 28,000,000 52,000,000 - 28,000,000 52,000,000 - 17,333,334 20,000,000 100,000,000 - - - - 20,000,000 - 100,000,000 100,000,000 17,333,334 20,000,000 Balance at beginning of year 01-Jul-18 Granted as Remuneration Net Other Changes Balance at end of year 30-Jun-19 Total Not Exercisable - - - - 10,052,665 10,052,665 25,000,000 25,000,000 10,052,665 25,000,000 - - - - - - 31,050,147 31,050,147 66,102,812 66,102,812 31,050,147 66,102,812 - - 2019 ANNUAL REPORT Page | 12 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-18 Granted as Remuneration On Exercise of Options Net Other Changes Balance at end of year 30-Jun-19 72,947,334 10,362,000 - - - 10,052,665 25,000,000 - 82,999,999 35,362,000 62,100,294 145,409,628 - - - - 107,350,385 169,450,679 142,403,050 287,812,678 Stephen Keenihan shares held in the name of Mr Stephen Leslie Keenihan & Mrs Sheridan Jay Keenihan David Messina shares held in the name of Mtani Pty Ltd 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) Transactions value year end 30-Jun-18 30-Jun-19 Balance outstanding as at 30-Jun-18 30-Jun-19 179,200 179,200 174,400 174,400 95,200 95,200 70,933 70,933 i. 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. 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 2018 Annual General Meeting Whitebark Energy Ltd received 88% of “yes” votes on its remuneration report for the 2018 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 2019, 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. 11 Results and Dividends The consolidated entity’s loss after tax attributable to members of the Company for the financial year ending 30 June 2019 was $4,075,448 (30 June 2018 loss: $5,664,449). No dividends have been paid or declared by the Company during the period ended 30 June 2019. 2019 ANNUAL REPORT Page | 13 WHITEBARK ENERGY LTD Directors’ Report 12 Financial Position The net assets of the consolidated entity at 30 June 2019 were $3,867,856 (30 June 2018: $3,699,732) of which $2,923,228 (30 June 2018: $1,090,415) 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 2019 was (0.2672) cents per share (30 June 2018: 0.6101 cents loss per share). 14 Events Subsequent to Reporting Date On 18 July 2019 the Company announced the acquisition of 320 acres in the Wizard Lake land position taking the total gross area to 3,705 acres. The acquisition increased the potential additional well locations to at least 20. Rex-2 was drilled and fracced in August and tested in September 2019, with peak production rate of 865 BOE/d (560bbls of oil and 2 MMcf of gas) before the well had to be constrained due to unexpected high gas production. 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. 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 169,450,679 82,999,999 35,362,000 51,050,147 38,052,665 77,000,000 * Held in the name of Stephen Leslie Keenihan & Sheridan Jay Keenihan . **Held in the name of Mtani Pty Ltd 2019 ANNUAL REPORT Page | 14 WHITEBARK ENERGY LTD Directors’ Report 18 Share Options 18.1 Options Granted to Officers of the Company No options were granted to officers of the company during the year. 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 111,000,000 unlisted options on issue detailed as follows: Grant Date 28-Apr-17 24-Jul-17 Exercisable 28 April 2017 to 1 April 2021 24 July 2017 to 31 May 2021 Expiry date Exercise price 1-Apr-21 31-May-21 $0.015 $0.015 Number of options 11,000,000 100,000,000 All options expire on the earlier of their expiry date or termination of employment. Option holders do not have any right, by virtue of the option, to participate in any share issue of the Company. 18.2 Shares Issued on Exercise of Options During the financial year there were 20,000 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. 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. 2019 ANNUAL REPORT Page | 15 WHITEBARK ENERGY LTD Directors’ Report 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 17 and forms part of the Directors’ report for the financial year ended 30 June 2019. Signed in accordance with a resolution of the Directors. Perth, 23 September 2019 David Messina Managing Director 2019 ANNUAL REPORT Page | 16 WHITEBARK ENERGY LTD Auditors Independence Declaration 2019 ANNUAL REPORT Page | 17 WHITEBARK ENERGY LTD Independent Audit Report 2019 ANNUAL REPORT Page | 18 WHITEBARK ENERGY LTD Independent Audit Report 2019 ANNUAL REPORT Page | 19 WHITEBARK ENERGY LTD Independent Audit Report 2019 ANNUAL REPORT Page | 20 WHITEBARK ENERGY LTD Independent Audit Report 2019 ANNUAL REPORT Page | 21 WHITEBARK ENERGY LTD Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2019 Notes 30-Jun-19 AUD 30-Jun-18 AUD Revenue Cost of goods sold Gross Profit/(Loss) Other income Finance income Gain/(loss) on disposal of available-for-sale financial assets Profit/(loss) on disposal of assets Gain on bargain purchase Change in fair value of financial assets Expenses Administrative expenses Finance costs Impairment expense Share based payments expense Other operating expenses Loss before income tax expense from continuing operations Income tax benefit Loss after income tax expense for the period Other comprehensive income/(loss), net of tax Items reclassified through profit and loss: Realised gain on marketable securities Foreign currency translation Total other comprehensive income for the period Total comprehensive income/(loss) for the period Loss per share Basic and diluted (cents per share) 5 6 7 8 9 20 23 10 11 12 31 13 15 1,877,190 (1,856,141) 21,049 1,630,809 (1,613,293) 17,516 - 88,692 - 1,379,736 33,573 (2,271,761) (170,986) (1,552,431) (81,745) (1,521,575) 4,364 59,823 246,660 (741) 911,367 - (2,479,469) (109,055) (1,330,642) (588,403) (2,395,869) (4,075,448) (5,664,449) - (4,075,448) - (5,664,449) - (200,000) 120,254 175,333 175,333 (79,746) (3,900,115) (5,744,195) 16 (0.2672) (0.6101) The accompanying notes form part of these financial statements. 2019 ANNUAL REPORT Page | 22 WHITEBARK ENERGY LTD Statement of Financial Position as at 30 June 2019 Assets Current Assets Cash and cash equivalents Trade and other receivables Other current assets Other investments Total current assets Non-current Assets Property, plant and equipment Exploration and evaluation assets Total non-current assets Total assets 17 18 19 23 21 22 24 25 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 25 26 27 28 30-Jun-19 AUD 30-Jun-18 AUD 2,923,228 1,289,755 155,744 839,329 5,208,056 1,090,415 125,060 97,989 - 1,313,464 8,041,123 919,584 8,960,707 14,168,763 8,152,319 2,556,696 10,709,015 12,022,479 1,621,848 100,391 1,722,239 9,927 8,568,740 8,578,667 10,300,906 3,867,856 658,007 102,342 760,349 3,995 7,558,403 7,562,398 8,322,747 3,699,732 58,369,150 1,014,004 (55,515,298) 3,867,856 54,382,657 756,926 (51,439,851) 3,699,732 The accompanying notes form part of these financial statements. 2019 ANNUAL REPORT Page | 23 WHITEBARK ENERGY LTD Statement of Changes in Equity for the year ended 30 June 2019 For the year ended 30 June 2019 Share Capital Balance at 1 July 2018 Total comprehensive income for the period Loss attributable to members of the parent entity 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 Net proceeds from share issue Share option expense Total contributions by and distributions to owners Balance at 30 June 2019 AUD 54,382,657 - - - - 3,986,493 - 3,986,493 58,369,150 Foreign currency translation reserve AUD 71,702 Share based payments reserve AUD 685,224 - 175,333 175,333 175,333 - - - 247,035 - - - - - 81,745 81,745 766,969 FVTPL Accumulated Losses Total Equity AUD - AUD (51,439,851) AUD 3,699,732 - - - - - - - - (4,075,448) - - (4,075,448) (4,075,448) 175,333 175,333 (3,900,115) - - - (55,515,297) 3,986,493 81,745 4,068,238 3,867,856 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 Realised gain on marketable securities 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 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 Foreign currency translation reserve AUD 1,333,133 - - - 120,255 120,255 120,255 Share based payments reserve FVOCI Accumulated Losses Total Equity AUD 96,822 AUD 200,000 AUD (47,157,091) AUD 7,119,635 - (5,664,449) 46,600 (246,600) - - - - - - - 46,600 (246,600) (5,664,449) - - - (200,000) (200,000) - - (5,664,449) 120,255 120,255 (5,744,194) AUD 52,646,771 - - - - - - - 1,735,886 - 1,735,886 54,382,657 (1,381,687) - - (1,381,687) 71,701 - - 588,403 588,403 685,225 - - - - - 1,381,687 - - 1,381,687 (51,439,851) - 1,735,886 588,403 2,324,289 3,699,732 The accompanying notes form part of these financial statements. 2019 ANNUAL REPORT Page | 24 Cash flows from operating activities Receipts from customers Interest received Payment for production, 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 tenements Proceeds from sale of securities Proceeds from deed of termination (Warro JV) 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 2019 The accompanying notes form part of these financial statements. WHITEBARK ENERGY LTD Statement of Cash Flows for the year ended 30 June 2019 Note 30-Jun-19 AUD 30-Jun-18 AUD 1,395,398 28,792 (3,800,110) (2,375,920) 1,372,923 86,670 (3,965,617) (2,506,024) 29 - 2,194,038 - - - (53,218) (1,644,705) (256,028) 240,087 3,906,493 - 3,906,493 1,770,660 1,090,415 62,153 2,923,228 13,832 197,393 446,660 48,692 (341,997) (85,969) (1,786,073) (1,538,888) (3,046,350) 1,735,885 7,000 1,742,885 (3,809,489) 4,856,884 43,020 1,090,415 17 2019 ANNUAL REPORT Page | 25 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 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 2019 comprises the Company and its subsidiaries. The consolidated entity is involved in oil and gas exploration in Western Australia and oil and gas exploration and production in Alberta, Canada. The financial report was authorised for issue by the directors on 23 September 2019. 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 $4,075,448 for the year ended 30 June 2019 (2018: loss of $5,664,449). Included within this loss was the exploration and development expenditure write off or impairment of $227,221 (2018: $1,157,845) and the property, plant and equipment write off or impairment of $1,325,210 (2018: $172,797). The net working capital surplus of the Consolidated Entity at 30 June 2019 was $3,485,817 (2018: surplus of $553,115) and the net increase in cash held during the year was $1,832,813 (2018: decrease of $3,766,468). 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 from existing cash reserves, investments and meeting budgeted operational performance for at least 12 months and should the company require it, the Directors’ have a reasonable expectation of being 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 classified at fair value through profit and loss (FVTPL). (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. 2019 ANNUAL REPORT Page | 26 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 (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 21 and 22 – Impairment expense (see note 3(k)) and depletion and depreciation (see note 3(o)) Note 25 – Provisions (see note 3(r)) Note 31 – Share-based payment (see note 3(q)(iii)) Note 22 – 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 2018. AASB 9 Financial Instruments: AASB 9 introduces a single approach to determine whether a financial asset is measured at amortized cost or fair value. 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, where the fair value option is applied, 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. 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. The Company has determined that the effect of adopting AASB 9 did not have a significant impact on the carrying amount of the financial assets at 1 July 2018. AASB 15 Revenue from Contracts with Customers AASB 15 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 has been determined by the Company that the adoption of AASB 15 will not require any material adjustments to the Company’s financial statements or accounting policies as the normal sales transactions only have one performance obligation to transfer goods (the production) to a customer at a point in time. The point in time when the goods transfer to the customer is the same under AASB 118 and AASB 15. 2019 ANNUAL REPORT Page | 27 When these Standards were first adopted for the year ending 30 June 2019, there was no material impact on the financial statements. WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 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 2019. 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 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. 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 the foreign currency translation reserve 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: 2019 ANNUAL REPORT Page | 28 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 • • 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. • 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 2019 ANNUAL REPORT Page | 29 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 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. (j) Cash and cash equivalents Cash and cash equivalents comprise cash balances, short term bills and call deposits. Cash equivalents include deposits and other highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Bank overdrafts that are repayable on demand and form an integral part of the consolidated entity’s cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flow. (k) Impairment of non-financial assets The carrying amounts of the consolidated entity’s non-financial assets, other than deferred tax assets, are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognised in the profit and loss. 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. 2019 ANNUAL REPORT Page | 30 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 (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 36). 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 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. 2019 ANNUAL REPORT Page | 31 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 (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 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 (Level 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 2019 ANNUAL REPORT Page | 32 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 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. (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 when the control of the goods or services is transferred to the customer. Determining the timing of the transfer of control requires judgement. Revenue is measured at the fair value of the consideration received or receivable, net of returns, trade allowances and duties and taxes paid. (iv) 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. (v) Sales revenue Revenue from the sale of oil and natural gas will be recorded when control of the goods or services transfer to the customer. Royalty income is recognised in petroleum and natural gas revenues as it accrues in accordance with the terms of the overriding royalty agreements. 2019 ANNUAL REPORT Page | 33 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 (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. 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 2019 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. 2019 ANNUAL REPORT Page | 34 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. WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 (x) Financial instruments Policy applicable before 1 July 2018 (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. 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 2019 ANNUAL REPORT Page | 35 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 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). Policy applicable from 1 July 2018 Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the Group becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price. Financial Assets On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI – debt investment; FVOCI – equity investment; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model. A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL: – it is held within a business model whose objective is to hold assets to collect contractual cash flows; and – its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL: – it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and – its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’s fair value in OCI. This election is made on an investment-by-investment basis. All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. Financial assets – Business model assessment: The Group makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management. The information considered includes: – the stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether management’s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realising cash flows through the sale of the assets; – how the performance of the portfolio is evaluated and reported to the Group’s management; – the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed; – how managers of the business are compensated – e.g. whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and – the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity. Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, consistent with the Group’s continuing recognition of the asset. 2019 ANNUAL REPORT Page | 36 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL. Financial assets – Assessment whether contractual cash flows are solely payments of principal and interest. In assessing whether the contractual cash flows are solely payments of principal and interest, the Group considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Group considers: – contingent events that would change the amount or timing of cash flows; – terms that may adjust the contractual coupon rate, including variable-rate features; – prepayment and extension features; and – terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse features). A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment amount substantially represents unpaid amounts of principal and interest on the principal amount outstanding, which may include reasonable additional compensation for early termination of the contract. Additionally, for a financial asset acquired at a discount or premium to its contractual par amount, a feature that permits or requires prepayment at an amount that substantially represents the contractual par amount plus accrued (but unpaid) contractual interest (which may also include reasonable additional compensation for early termination) is treated as consistent with this criterion if the fair value of the prepayment feature is insignificant at initial recognition. Financial assets – Subsequent measurement and gains and losses: Financial assets at FVTPL - These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss. Financial assets at amortised cost - These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss. Debt investments at FVOCI - These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. Equity investments at FVOCI - These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are never reclassified to profit or loss. (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. 2019 ANNUAL REPORT Page | 37 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 • 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 a material impact on the transactions and balances recognised in the financial statements on first adoption. 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. 2019 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/(loss) after income tax expense Assets Total current assets Total non-current assets Total assets Liabilities Total current liabilities Total non-current liabilities Total liabilities 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/(loss) 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-19 Canada 30-Jun-19 Total Segment 30-Jun-19 11,547 11,547 29,178 - 40,725 (612,921) (11,693) - (624,614) 1,865,643 1,865,643 59,514 - 1,925,157 (865,378) (1,029,719) (1,552,431) (3,447,528) 1,877,190 1,877,190 88,692 - 1,965,882 (1,478,299) (1,041,412) (1,552,431) (4,072,142) 3,566,680 (997,262) 2,569,418 1,641,376 9,957,969 11,599,345 5,208,056 8,960,707 14,168,763 (345,891) (1,460,329) (1,806,220) (1,376,348) (7,118,338) (8,494,686) (1,722,239) (8,578,667) (10,300,906) Unallocated 30-Jun-19 - - - - - Consolidated 30-Jun-19 1,877,190 1,877,190 88,692 - 1,965,882 (3,306) - - (3,306) - - - - - - (1,481,605) (1,041,412) (1,552,431) (4,075,448) - (4,075,448) 5,208,056 8,960,707 14,168,763 (1,722,239) (8,578,667) (10,300,906) Australia 30-Jun-18 Canada 30-Jun-18 Total Segment 30-Jun-18 Unallocated 30-Jun-18 Consolidated 30-Jun-18 - - 38,290 4,364 42,654 (3,467,409) (17,156) - (3,484,565) 1,630,809 1,630,809 21,533 - 1,652,342 (82,028) (764,462) (1,330,642) (2,177,132) 1,630,809 1,630,809 59,823 4,364 1,694,996 (3,549,437) (781,618) (1,330,642) (5,661,697) - - - - - (2,753) - - (2,753) 1,630,809 1,630,809 59,823 4,364 1,694,996 (3,552,190) (781,618) (1,330,642) (5,664,450) - (5,664,450) Australia 30-Jun-18 Canada 30-Jun-18 Total Segment 30-Jun-18 Unallocated 30-Jun-18 Consolidated 30-Jun-18 1,076,805 1,660,290 2,737,095 236,659 9,048,725 9,285,384 1,313,464 10,709,015 12,022,479 (335,802) (1,298,753) (1,634,555) (424,547) (6,263,645) (6,688,192) (760,349) (7,562,398) (8,322,747) - - - - - - 1,313,464 10,709,015 12,022,479 (760,349) (7,562,398) (8,322,747) The Canada column discloses the company’s proportionate share of all assets and liabilities held in the unincorportated PLJV. 2019 ANNUAL REPORT Page | 38 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 5 Revenue from continuing operations Product sales Other sales Royalties 6 Cost of goods and services sold Production expenditure 7 Finance income Interest income Unrealised commodity gain Foreign currency gain 30-Jun-19 AUD (2,096,027) (11,546) 230,383 (1,877,190) 30-Jun-18 AUD (1,950,312) - 319,503 (1,630,809) 30-Jun-19 AUD (1,856,141) (1,856,141) 30-Jun-18 AUD (1,613,293) (1,613,293) 30-Jun-19 AUD 30-Jun-18 AUD 29,491 - 59,201 88,692 38,299 11,907 9,617 59,823 8 Gain on disposal of available-for-sale financial assets Gain on disposal of financial assets - Norwest Energy Limited 9 Profit/ (loss) on disposal of assets Gain on disposal of TP/15 Gain on disposal of developed and producing land - Canada Loss on disposal of motor vehicle - Latent Petroleum 10 Administration expenses Directors' fees Administration and finance support General and administration 30-Jun-19 AUD 30-Jun-18 AUD - - 246,660 246,660 30-Jun-19 AUD 30-Jun-18 AUD 1,289,734 90,002 - 1,379,736 - - (741) (741) 30-Jun-19 AUD 30-Jun-18 AUD (111,000) (831,448) (1,329,313) (2,271,761) (111,000) (819,407) (1,549,062) (2,479,469) 2019 ANNUAL REPORT Page | 39 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 11 Finance costs Interest expense Decommissioning liabilities - accretion 12 Impairment expenses Impairment - Canadian assets 30-Jun-19 AUD 30-Jun-18 AUD (608) (170,378) (170,986) (71) (108,984) (109,055) 30-Jun-19 AUD (1,552,431) (1,552,431) 30-Jun-18 AUD (1,330,642) (1,330,642) In determining our impairment position of the Canadian assets for the year ended 30 June 2019 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 $1,325,210 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 $227,221 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 2019 where no future exploration or development was anticipated (Refer notes 21 and 22). In determining the impairment position of the Canadian assets for the year ended 30 June 2018 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 $172,797 was charged in relation to the developed and producing assets for the year ended 30 June 2018. 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 was charged in relation to exploration and evaluation assets for the year ended 30 June 2018. 13 Other expenses Depletion, depreciation and amortisation Project costs Legal fees Tax advisory services Consultancy fees Revision of Rehab and Abandonment provision Workover expense 30-Jun-19 AUD 30-Jun-18 AUD (1,041,412) (228,774) (21,742) (13,450) (83,368) (13,963) (118,866) (1,521,575) (781,618) (485) (91,137) (11,030) (163,532) (1,244,767) (103,300) (2,395,869) 2019 ANNUAL REPORT Page | 40 14 Auditor remuneration WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 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 FY18 FY19 Other services -auditors of Whitebark Energy Limited - KPMG -Tax advice 15 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 26.5%) 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 Income tax benefit 30-Jun-19 AUD 30-Jun-18 AUD - (42,025) (12,322) (85,000) (50,738) - - (97,322) (60,000) (152,763) 30-Jun-19 AUD 30-Jun-18 AUD - - - - (4,075,448) (1,120,748) 86,188 (1,034,560) (5,664,448) (1,557,723) 54,428 (1,503,295) 22,480 - - 2,365 161,811 - - 1,827 (1,009,715) (1,339,657) 224,326 746,771 (76,493) 115,111 862,849 648,219 (67,475) (103,936) - - 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. 2019 ANNUAL REPORT Page | 41 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 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 548,470 7,130,527 3,642 (37,980) 7,644,659 503,234 6,902,177 3,642 (423,087) 6,985,966 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 16 Earnings/(loss) per share 1,815,330 1,562,678 - (866,433) 2,511,575 1,566,236 815,907 - (958,785) 1,423,358 The calculation of basic loss per share at 30 June 2019 of 0.2672 cents per share (30 June 2018 basic loss: 0.6101 cents per share) was based on the loss attributable to the ordinary shareholders of $4,075,448 (30 June 2018 loss: $5,664,449) and a weighted average number of ordinary shares outstanding during the year ended 30 June 2019 of 1,525,021,337 (30 June 2018: 928,383,515 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-19 AUD 30-Jun-18 AUD (4,075,448) (5,664,449) (4,075,448) - (5,664,449) - 990,431,004 534,590,333 1,525,021,337 (0.2672) (0.2672) - (0.2672) 835,264,337 93,119,178 928,383,515 (0.6101) (0.6101) - (0.6101) 723,695,367 options (refer Note 31) are not included in calculating diluted EPS because the effect is anti-dilutive. 17 Cash and cash equivalents Cash at bank Term deposits Effective interest rates were 2.5% - 2.75% and average maturity was 45 days. 30-Jun-19 AUD 30-Jun-18 AUD 2,162,938 760,290 2,923,228 1,030,142 60,273 1,090,415 2019 ANNUAL REPORT Page | 42 18 Trade and other receivables Trade and other receivables WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 30-Jun-19 AUD 30-Jun-18 AUD 1,289,755 1,289,755 125,060 125,060 All amounts are short term. The net carrying value of trade receivables is considered a reasonable approximation of fair value. Other receivables includes $709,282 to be received from future operational receipts from the Wizard Lake joint venture. 19 Other current assets Prepayments 30-Jun-19 AUD 30-Jun-18 AUD 155,744 155,744 97,989 97,989 20 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 21 22 26 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. 2019 ANNUAL REPORT Page | 43 21 Property, plant and equipment Plant and equipment at cost Less: accumulated depletion and depreciation Accumulated impairment Property, plant and equipment Reconciliation of carrying amounts Developed and Producing Opening balance Acquisition though business combination Increase in asset retirement obligation asset Additions Foreign exchange Disposal Impairment Depletion Furniture and Fixtures Opening balance Additions Depreciation expense Office equipment Opening balance Additions Depreciation expense Software Assets Opening balance Depreciation expense Motor vehicles Opening balance Disposal Depreciation expense WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 30-Jun-19 AUD 14,867,799 (1,941,661) (4,885,015) 8,041,123 30-Jun-18 AUD 12,541,168 (835,619) (3,553,230) 8,152,319 8,135,466 - 652,267 1,365,573 517,143 (258,708) (1,331,785) (1,045,689) 8,034,267 1,618 - (323) 1,295 7,060 1,681 (3,180) 5,561 8,176 (8,176) - - - - - 5,177,307 1,621,004 450,566 1,795,901 214,804 (183,188) (173,984) (766,944) 8,135,466 301 1,377 (60) 1,618 10,116 816 (3,872) 7,060 22,612 (14,436) 8,176 15,470 (13,832) (1,638) - 8,041,123 8,152,319 2019 ANNUAL REPORT Page | 44 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 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 and Wizard Lake CGU’s. The following table outlines the forecast benchmark commodity prices used in the impairment calculation of property, plant and equipment at 30 June 2019. 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) 2019 (6 months) 72.00 76.00 1.75 2020 76.30 80.40 2.15 2021 78.40 82.60 2.55 2022 83.30 87.50 3.00 2023 85.00 89.30 3.15 2024 86.60 91.00 3.20 2025 88.40 92.90 3.25 2026 90.10 94.70 3.35 2027 92.00 96.70 3.40 2028 93.80 98.60 3.50 2029 95.70 100.60 3.50 2030 97.60 102.60 3.60 The impairment test of property, plant and equipment at 30 June 2019 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 2019 (before impairment) Less: Impairment Net book value at 30 June 2019 6,035,543 - 6,035,543 1,331,785 (1,331,785) - 1,998,724 - 1,998,724 Mannville Thornbury/Portage Wizard Lake 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 2019 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. Had the discount rate used have changed by 1%, or there was a price decrease of $1.00/bbl and $0.10/Mcf in the price deck for WTI and AECO respectively, impairment charges would not have changed. 2019 ANNUAL REPORT Page | 45 22 Exploration and evaluation expenditure WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 Exploration and evaluation assets Movement in exploration and evaluation expenditure Opening Balance Acquisition through business combination Additions - Canada Additions - TP15 Expenditure incurred during the period Impairment for exploration and evaluation assets Disposal during the year Transfer to Property plant and equipment Foreign currency movement 30-Jun-19 AUD 30-Jun-18 AUD 919,584 2,556,696 2,556,696 - 83,966 18,325 - (237,233) (1,534,111) (34,229) 66,170 919,584 2,077,749 57,476 199,946 - 1,338,779 (1,157,496) (14,205) (9,828) 64,275 2,556,696 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). 23 Other investments Available-for-sale financial assets: Listed equity securities 30-Jun-19 AUD 30-Jun-18 AUD 839,329 839,329 - - 2019 ANNUAL REPORT Page | 46 24 Trade and other payables Current: Trade creditors Other payables Total trade and other payables WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 30-Jun-19 AUD 30-Jun-18 AUD 1,278,461 343,387 1,621,848 404,937 253,070 658,007 All amounts are short-term. The carrying value of trade payables and other payables are considered to be a reasonable approximation of fair value. 25 Provisions Current Provisions: Annual leave Long service leave Non-Current Provisions: Long service leave 26 Decommissioning liabilities Balance at the beginning of the year Liabilities acquired - Canada Change in inflation rate of liabilities Movement in Warro Project liability Change in discount rate of liabilities Revision of estimates Disposal of assets Accretion expense Expenditure Foreign currency movement Balance at the end of the year 30-Jun-19 AUD 30-Jun-18 AUD 52,895 47,496 100,391 9,927 9,927 61,824 40,518 102,342 3,995 3,995 110,318 106,337 30-Jun-19 AUD 30-Jun-18 AUD 7,558,403 27,501 128,690 13,963 336,185 278,236 (259,632) 170,378 (83,234) 398,251 8,568,740 5,207,868 425,116 534,734 1,293,459 (56,188) (27,981) - 109,305 (100,436) 172,526 7,558,403 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 $8,568,740 as at 30 June 2019 (2018: $7,558,403) based on an undiscounted total future liability of $10,417,809 (2018: $9,942,028). 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 1.6% for the Canadian obligation (2018: 2.1%) and 3.0% for the Australian obligation (2018: 3%) and the inflation rate is 2.1% for Canadian and 1.9% for Australian obligations (2018: 2.0% for Canada and 1.9% for Australia) per annum. 2019 ANNUAL REPORT Page | 47 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 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. 27 Issued capital Ordinary Shares 30-Jun-19 AUD 58,369,150 30-Jun-18 AUD 54,382,657 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 2019 Ordinary shares Opening balance Issue of shares for cash Exercise of options 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 2018 Ordinary shares Opening balance Closing balance Less share issue costs: Opening balance Current period costs Share issue costs at the end of the year Number of shares 990,431,004 972,715,367 20,000 1,963,166,371 Number of shares 835,264,337 155,166,667 990,431,004 AUD 55,619,488 4,280,862 200 59,900,550 (1,236,831) (294,569) (1,531,400) 58,369,150 AUD 53,757,488 1,862,000 55,619,488 (1,110,717) (126,114) (1,236,831) 54,382,657 2019 ANNUAL REPORT Page | 48 28 Reserves Share based payments reserve Foreign currency translation reserve Balance at 1 July 2018 Exchange differences on translating foreign operations Share based payments expense Balance at 30 June 2019 Share based payments reserve WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 30-Jun-19 AUD 30-Jun-18 AUD 766,969 247,035 1,014,004 685,224 71,702 756,926 Foreign currency translation reserve 30 June 2019 AUD Share based payments reserve 30 June 2019 AUD 71,702 175,333 - 247,035 685,224 - 81,745 766,969 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. 2019 ANNUAL REPORT Page | 49 29 Reconciliation of cash flow from operating activities WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 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 Gain on fair value of financial assets Impairment expense Revision of provision for rehabilitation and abandonment - Warro Unrealised commodity gain 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 30-Jun-19 AUD 30-Jun-18 AUD (4,075,448) (5,664,449) 1,041,412 170,378 - (1,379,736) - (33,573) 1,552,431 13,963 - (59,201) 81,745 (2,688,029) (435,365) 747,474 (2,375,920) 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) 30 Related Party Transactions 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-19 AUD 30-Jun-18 AUD (702,059) (25,000) (72,065) (799,124) (667,918) (25,000) (557,346) (1,250,264) The aggregate amounts recognised during the year relating to directors’ related parties and other related parties were as follows: TB & S Consulting Pty Ltd (i) Westranch Holdings Pty Ltd (ii) Point Loma Resources Limited (iii) Transactions value year end 30-Jun-18 30-Jun-19 Balance outstanding as at 30-Jun-19 30-Jun-18 179,200 - 1,535,500 1,714,700 174,400 1,338,120 2,499,158 4,011,678 90,000 - 143,650 233,650 70,933 - 153,608 224,541 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. Westranch Holdings Pty Ltd is the operator of the TP15 Joint Venture iii. 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. 2019 ANNUAL REPORT Page | 50 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 31 Share –based payments and options issued 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. 2019 112,675,000 612,715,367 - - - 20,000 1,675,000 723,695,367 WAEP 2019 0.016 0.01 - - - 0.012 WAEP 2018 No. 2018 12,675,000 100,000,000 - - - 112,675,000 0.021 0.015 - - - 0.016 The number of options vested and exercisable as at 30 June 2019 was 706,362,033 (2018: 50,341,669). 602,715,367 listed options were granted during the year (not as part of remuneration). 515,215,367 options were issued on 30 August 2018 as part of an entitlement issue and 87,500,000 were issued on 3rd September 2018 as part of the renounceable rights issue. All listed options issued during the year are exercisable at $0.01 on or before 31st August 2020. 10,000,000 unlisted options were granted during the year in part consideration for the appointment of an Investor relations and corporate advisor. These options are exercisable at $0.08 on or before 20 June 2021. The related party options granted during the 2018 year vest over a three year period. During the year 41,333,333 of the 100,000,000 options granted have vested. The outstanding balance of unlisted options over ordinary shares as at 30 June 2019 represented by: Unlisted Options Grant Date 28-Apr-17 24-Jul-17 20-Jun-19 Exercisable Expiry date Exercise price 28 April 2017 to 1 April 2021 24 July 2017 to 31 May 2021 20 June 2019 to 20 June 2021 1-Apr-21 31-May-21 20-Jun-21 Number of options 11,000,000 100,000,000 10,000,000 Value of share based payments 70,191 633,019 25,688 $0.015 $0.015 $0.008 The outstanding balance of unlisted 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 $0.015 633,019 $0.015 11,000,000 100,000,000 The weighted average remaining contractual life for the unlisted share options outstanding as at 30 June 2019 is two years. The exercise price for options outstanding at the end of the year is 111,000,000 at A$0.015 and 10,000,000 at A$0.008 (2018: 111,000,000 at A$0.015 and 1,675,000 at A$0.06). Fair value of options granted There were 10,000,000 unlisted options granted during the year ended 30 June 2019 (not as part of remuneration). The fair value of unlisted options at grant date is determined using the binomial method of valuing options that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option. The expense recognised in profit or loss in relation to share-based payments is $81,745 (2018: $588,403). 2019 ANNUAL REPORT Page | 51 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 Listed Options Options on issue at balance date Options issued at the start of the year Options issued pursuant to a non-renounceable entitlement offer* Options excercised during the 6 months ended 31 December 2018 Options on issue at end of the reporting period 30-Jun-19 30-Jun-18 602,695,367 - 602,715,367 (20,000) 602,695,367 - - - - - *Options exercisable at 1 cent each and expiring on 31 August 2020 issued pursuant to a renounceable entitlement issue and placement. 32 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 2019 Profit/(Loss) for the year Other comprehensive income Total comprehensive income 30-Jun-19 AUD 3,447,917 630,774 4,078,691 210,835 - 210,835 30-Jun-18 AUD 908,926 2,981,625 3,890,551 190,819 - 190,819 3,867,856 3,699,732 58,369,150 766,969 - (55,268,264) 3,867,855 54,382,657 685,224 - (51,368,149) 3,699,732 (3,900,115) - (3,900,115) (3,078,411) (200,000) (3,278,411) The Company has no contingent liabilities or commitments and no guarantees due to subsidiaries at 30 June 2019. 33 Financial instruments Financial Risk Management Overview The consolidated entity has exposure to the following risks from its use of financial instruments: credit risk; commodity risk; currency 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. 2019 ANNUAL REPORT Page | 52 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 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 and deposits with banks. Trade and other receivables The consolidated entity operates in the oil and gas exploration and production sector. As at 30 June 2019 there were no significant concentrations of credit risk on the statement of financial position. Approximately $310,000 of trade receivables at 30 June 2019 relate to two customers. The group in turn has a trade payable to each of these customers equal to or greater than the amount receivable. The consolidated entity monitors receivable balances on an ongoing basis and as a result believes its exposure to bad debts is not significant. Impairment losses None of the Company’s other receivables are past due (2018: nil). As at 30 June 2019 there is no allowance for impairment in respect to other receivables for the consolidated entity (2018: 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-2019 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-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-19 AUD 1,289,755 2,923,228 4,212,983 30-Jun-18 AUD 125,060 1,090,415 1,215,475 Current assets Other investments including derivatives 0 839,329 Trade and other receivables 0 - 1,289,755 - - - 1,289,755 839,329 Cash and cash equivalents 0 - - 2,923,228 2,923,228 Current assets Other investments including derivatives - - - Trade and other receivables - 125,060 - 125,060 Cash and cash equivalents - - 1,090,415 1,090,415 Total Level 1 0 839,329 1,289,755 2,923,228 5,052,312 0 839,329 - - 839,329 Total Level 1 - 125,060 1,090,415 1,215,475 - - - 2019 ANNUAL REPORT Page | 53 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 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. The following table details the impact on revenue a 10% and 20% increase and decrease in oil price would have on current year revenue, using the entities average oil price over this year. The below table shows the increase in profit and equity given and increase in oil price, there would be a negative impact to both profit and equity to the same degree is average oil price decreased by the same percentage. Oil Price Impact 2019 2018 167,083 334,166 132,616 265,232 Profit or loss: 10% Profit or loss: 20% 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 consolidated entity is mainly exposed to United States dollars (USD) and Canadian dollars (CAD). The following table details the Consolidated Entity’s sensitivity to a 10% and 20% increase and decrease in the USD and CAD against the Australian dollar. The sensitivity analysis is based on 30 June 2019 year end foreign currency denominated monetary items and adjusts their translation at year end for a 10% and 20% strengthening in foreign currency rates. For a 10% and 20% decrease in foreign currency rates, there would be a comparable impact on the profit and equity, and the balances below would be negative. 2019 2018 28,244 182,139 210,383 56,489 364,278 420,767 12,242 2,502 14,744 24,484 5,003 29,487 Profit or loss: 10% CAD Profit or loss: 10% USD Profit or loss: 20% CAD Profit or loss: 20% USD 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: 2019 ANNUAL REPORT Page | 54 WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 Current liabilities Total Level 1 Bank overdraft Trade and other payables Loans and borrowings - - - - 1,621,848 1,621,848 Current liabilities Trade and other payables Loans and borrowings 658,008 658,008 - - - - 1,621,848 1,621,848 Total Level 1 658,008 658,008 - - Bank overdraft 30-Jun-2019 Financial liabilities measured at fair value Financial liabilities not measured at fair value Trade and other payables 30-Jun-2018 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. 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 2019 2018 2,923,228 2,923,228 1,090,415 1,090,415 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 2018. 30 June 2019 Variable rate instruments Cash flow sensitivity 30 June 2018 Variable rate instruments Cash flow sensitivity Fair values Profit or loss 100bp increase AUD 100bp decrease 100bp increase AUD AUD 100bp decrease AUD Equity 29,232 29,232 10,904 10,904 (29,232) (29,232) (10,904) (10,904) 29,232 29,232 10,904 10,904 (29,232) (29,232) (10,904) (10,904) 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 2019 ANNUAL REPORT 2019 58,369,150 58,369,150 2018 54,382,657 54,382,657 14,168,763 24% 12,022,479 22% Page | 55 There were no changes in the consolidated entity’s approach to capital management during the year. As at 30 June 2019, neither the Company nor its subsidiaries are subject to externally imposed capital requirements. WHITEBARK ENERGY LTD Notes to the Financial Statements for the year ended 30 June 2019 34 Consolidated entities (a) Parent entity The parent entity of the group is Whitebark Energy Limited, incorporated in Australia. Registered office: Level 2, 6 Thelma Street, West Perth WA 6005 (b) Subsidiaries The consolidated financial statements incorporate assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described under 1(a). Name of Entity Subsidiaries of Whitebark Energy Ltd Tejon Energy Pty Ltd Tejon Energy Inc (100% subsidiary of Tejon Energy Pty Ltd) Latent Petroleum Pty Ltd Calor Energy Pty Ltd Kubla Oil Pty Ltd Salt Bush Energy Ltd Country of incorporation 2019 Equity holding % 2018 Equity holding % Australia USA Australia Australia Australia Canada 100 100 100 100 100 100 100 100 100 100 100 100 35 Contingent Liabilities There are no contingent liabilities at 30 June 2019 (2018: nil). 36 Commitments 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-19 30-Jun-18 Minimum Lease Payments Due Within 1 year 1 to 5 years After 5 years Total 15,775 15,013 9,360 - - - 25,135 15,013 Lease expense during the period amounted to $74,542 (2018: $74,542) representing the minimum lease payments. The rental agreement for the photocopier/printer is for a term of 60 months and will expire in June 2024. The Group as part of the Canadian joint venture (non operator) has a share of joint venture commitments. The commitments are for mineral lease payments. It should be noted that these commitments may be farmed out or relinquished. 30-Jun-19 37 Subsequent events Share of Joint Venture commitments Within 1 year 1 to 5 years 53,039 267,634 After 5 years 29,488 Total 350,161 On 18 July 2019 the Company announced the acquisition of 320 acres in the Wizard Lake land position taking the total gross area to 3,705 acres. The acquisition increased the potential additional well locations to at least 20. Rex-2 was drilled and fracced in August and tested in September 2019, with peak production rate of 865 BOE/d (560bbls of oil and 2 MMcf of gas) before the well had to be constrained due to unexpected high gas production. 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. 2019 ANNUAL REPORT Page | 56 WHITEBARK ENERGY LTD Directors’ Declaration for the year ended 30 June 2019 1. In the opinion of the Directors of Whitebark Energy Ltd (“the Company”): a. The financial statements and notes set out on pages 26 to 56, are in accordance with the Corporations Act 2001, including: ii. iii. Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2019 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 2019. Dated at Perth this 23rd day of September 2019. Signed in accordance with a resolution of the Directors. On behalf of the Directors David Messina Managing Director 2019 ANNUAL REPORT Page | 57 EXCHANGE LISTING Whitebark Energy Ltd shares are listed on the Australian Securities Exchange. The Company’s ASX code is WBE. SUBSTANTIAL SHAREHOLDERS (HOLDING NOT LESS THAN 5%) WHITEBARK ENERGY LTD Shareholder Information As at 17 September 2019 Rank 1. Name MR CHARLES WAITE MORGAN CLASS OF SHARES AND VOTING RIGHTS Units 169,450,679 % of Units 8.63 At 17 September 2019 there were 1,982 holders of 1,963,166,371 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 18,260 198,292 760,752 53,612,717 1,908,576,350 1,963,166,371 The number of shareholders holding less than a marketable parcel is 972. 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 1,354 42,603 112,407 7,209,747 595,329,256 602,695,367 The number of listed option holders holding less than a marketable parcel is 299. UNLISTED OPTIONS Securities Options exercisable at 1.5 cents on or before 1 April 2021 Options exercisable at 1.5 cents on or before 31 May 2021 ESCROWED SECURITIES Number of Securities on issue 11,000,000 100,000,000 Number Holders 4 3 of The Company does not have any securities on issue that are subject to escrow restrictions. 2019 ANNUAL REPORT Page | 58 LISTING OF 20 LARGEST SHAREHOLDERS AS AT 17 SEPTEMBER 2019 WHITEBARK ENERGY LTD Shareholder Information Name Rank 1 MR CHARLES WAITE MORGAN 2 MR STEPHEN LESLIE KEENIHAN + MRS SHERIDAN JAY KEENIHAN 3 ORABANT PTY LTD 4 5 6 7 8 SLADE TECHNOLOGIES PTY LTD RUSSELL STEPHENSON + PAMELA STEPHENSON BART SUPERANNUATION PTY LIMITED <4F INVESTMENTS SUPERFUND A/C> VILLEMARETTE NOMINEES PTY LTD ALBA CAPITAL PTY LTD SCINTILLA STRATEGIC INVESTMENTS LIMITED 9 MR DARREN JOHN HALL 10 11 MR CRAIG GRAEME CHAPMAN 12 SKYE EQUITY PTY LTD J & B SMITH SUPERANNUATION PTY LTD SACHA INVESTMENTS PTY LTD COMMUNICATIONS POWER INCORPORATED (AUST) PTY LTD 13 14 MTANI PTY LTD 15 ARGONAUT INVESTMENTS PTY LTD 16 17 18 MR DONATO IACOVANTUONO 19 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 20 TOTAL BNP PARIBAS NOMINEES PTY LTD LISTING OF 20 LARGEST LISTED OPTION HOLDERS AS AT 17 SEPTEMBER 2019 Rank Name SCINTILLA STRATEGIC INVESTMENTS LIMITED ORABANT PTY LTD MR CHARLES WAITE MORGAN MTANI PTY LTD BETTERMAKE PTY LTD FIRST INVESTMENT PARTNERS PTY LTD RUSSELL STEPHENSON + PAMELA STEPHENSON J & B SMITH SUPERANNUATION PTY LTD MR STEPHEN LESLIE KEENIHAN + MRS SHERIDAN JAY KEENIHAN AXSIM FUNDS MANAGEMENT PTY LTD HEHERSON AND ANITA BULOSAN PTY LTD MR JAMIE WRIGHT MR MATTHEW JAMES SACHR MRS YAN WANG MR MATTHEW STUART DIXON MR DONATO IACOVANTUONO MR DARREN JOHN HALL MRS SUSAN LOUISE GLADMAN MR DANIEL AARON HYLTON TUCKETT BART SUPERANNUATION PTY LIMITED <4F INVESTMENTS SUPERFUND A/C> 1 2 3 4 4 4 7 8 9 10 11 12 13 13 13 13 17 18 19 20 TOTAL Units % Units 8.63 4.23 3.16 169,450,679 82,999,999 62,000,000 60,000,000 56,451,538 55,831,252 46,856,085 44,829,525 43,150,000 40,000,000 35,814,699 30,958,557 27,000,000 25,362,000 18,932,000 18,799,487 18,000,000 16,497,654 15,605,808 15,090,246 883,629,529 3.06 2.88 2.84 2.39 2.28 2.20 2.04 1.82 1.58 1.38 1.29 0.96 0.96 0.92 0.84 0.79 0.77 45.02 Units % Units 140,000,000 39,000,000 31,050,147 23.23 6.47 5.15 25,000,000 20,000,000 11,840,000 11,290,307 11,000,000 10,052,665 10,000,000 10,000,000 9,000,000 8,000,000 7,500,000 7,475,000 7,000,000 6,500,000 6,000,000 6,000,000 5,955,025 382,663,144 4.15 3.32 1.96 1.87 1.83 1.67 1.66 1.66 1.49 1.33 1.24 1.24 1.16 1.08 1.00 1.00 0.99 63.49 2019 ANNUAL REPORT Page | 59 PERMITS Lease or Project Legal Description Interest Location AUSTRALIAN LAND INTERESTS Warro JV RL7 100% Western Australia Area Lessor/Crown # Rights Held Area Lessor/Crown # Rights Held Area Lessor/Crown # Rights Held Gilby 0487020215 Gilby 754283 AB Gilby 754283 AB Gilby PLATT Gilby PRAIRIESKY Gilby 0407110687 Gilby 0407110687 Gilby 0407110687 Gilby 0495110259 Gilby ENCANA Gilby SHERMAN Gilby FREEHOLD ROYALTIES PTNSHP Gilby 0411020053 Tract 1 TWP 41-RGE 1-W5M 10 PNG from surface to base MANNVILLE Tract 1 TWP 41-RGE 1-W5M NW15 PNG from surface to base BELLY RIVER Tract 1 TWP 41-RGE 1-W5M NE15 PNG from surface to base BELLY RIVER Tract 1 TWP 41-RGE 1-W5M SW15 PNG from surface to base BELLY RIVER Tract 1 TWP 41-RGE 1-W5M SE15 NG from surface to base HORSESHOE CANYON Tract 1 TWP 46-RGE 1-W5M 30 PNG from base BELLY RIVER to base MANNVILLE Excluding PNG from top CARDIUM to base CARDIUM Excluding WELLBORE Tract 1 TWP 46-RGE 1-W5M 30 WELLBORE ONLY Tract 1 TWP 46-RGE 1-W5M 30 PNG from top CARDIUM to base CARDIUM Tract 1 TWP 41-RGE 1-W5M 12 PNG from surface to base MANNVILLE Tract 1 TWP 43-RGE 28-W4M NE1,SW1 NG from top ELLERSLIE to base ELLERSLIE NG from top GLAUCONITIC to base GLAUCONITIC Tract 1 TWP 43-RGE 28-W4M 1(LSD 12,13) NG from base BELLY RIVER to base BANFF Excluding NG from top CARDIUM to base CARDIUM Tract 1 TWP 43-RGE 28-W4M 1(LSD 11,14) NG from base BELLY RIVER to base BANFF Excluding NG from top CARDIUM to base CARDIUM Tract 1 TWP 46-RGE 2-W5M 36 PNG from top MANNVILLE to base MANNVILLE Active WI % 15 30 30 30 30 Gilby PRAIRIESKY Gilby PRAIRIESKY Gilby PRAIRIESKY Gilby 0498040208 15 Gilby 0498040208 30 8 11 5 5 5 30 Gilby 0498040208 Gilby 21614 Gilby 21614 Gilby 21614 Gilby 21614 Gilby 0499040098 Gilby 0499040098 Active WI % 30 30 30 26 26 26 26 28 26 26 28 30 Tract 1 TWP 40-RGE 28-W4M SE13 PET from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 28-W4M SW13 PET from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 28-W4M S13,NE13,NW13 NG from top MANNVILLE to base MANNVILLE Tract 1 TWP 46-RGE 2-W5M NW24 PNG from surface to top BELLY RIVER Excluding NG from surface to base BEARPAW Tract 1 TWP 46-RGE 2-W5M S24 PNG from surface to top BELLY RIVER Excluding NG from surface to base BEARPAW Tract 1 TWP 46-RGE 2-W5M S24,NW24 NG from surface to base BEARPAW Tract 1 TWP 46-RGE 2-W5M 24(LSD 9,10,15) PNG from surface to top BELLY RIVER Excluding NG from surface to base BEARPAW Tract 1 TWP 46-RGE 2-W5M 24(LSD 16) PNG from surface to top BELLY RIVER Excluding NG from surface to base BEARPAW Tract 1 TWP 46-RGE 2-W5M 24(LSD 9,10,15) NG from surface to base BEARPAW Tract 1 TWP 46-RGE 2-W5M 24(LSD 16) NG from surface to base BEARPAW Tract 1 TWP 46-RGE 2-W5M NE24 PNG from base BELLY RIVER to base MANNVILLE Excluding PNG from top CARDIUM to base CARDIUM Excluding NG from base BELLY RIVER to base MANNVILLE Tract 1 TWP 46-RGE 2-W5M NE24 NG from base BELLY RIVER to base WHITEBARK ENERGY LTD Permits Rights 100% Active WI % MANNVILLE Excluding NG from top CARDIUM to base CARDIUM Tract 1 TWP 46-RGE 2-W5M NE24 PNG from top CARDIUM to base CARDIUM Excluding NG from top CARDIUM to base CARDIUM Tract 1 TWP 46-RGE 2-W5M NE24 NG from top CARDIUM to base CARDIUM Tract 1 TWP 46-RGE 1-W5M W30 PNG from surface to top BELLY RIVER Tract 1 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 Tract 1 TWP 46-RGE 1-W5M E30 NG from surface to top BELLY RIVER Tract 1 TWP 46-RGE 2-W5M S24,NW24 PNG from base BELLY RIVER to base MANNVILLE Excluding PNG from top CARDIUM to base CARDIUM Excluding NG from base BELLY RIVER to base MANNVILLE Tract 1 TWP 46-RGE 2-W5M S24,NW24 NG from base BELLY RIVER to base MANNVILLE Excluding NG from top CARDIUM to base CARDIUM Tract 1 TWP 46-RGE 2-W5M S24,NW24 PNG from top CARDIUM to base CARDIUM Excluding NG from top CARDIUM to base CARDIUM Tract 1 TWP 46-RGE 2-W5M S24,NW24 NG from top CARDIUM to base CARDIUM Tract 1 TWP 46-RGE 2-W5M 10 PNG from surface to base MANNVILLE Excluding PNG from top CARDIUM to base CARDIUM Tract 1 14 15 30 30 30 30 30 15 15 15 8 Gilby 0499040098 Gilby 0499040098 Gilby 0402080131 Gilby 0402100167 Gilby 0483070174 Gilby 0498040209 Gilby 0498040209 Gilby 0498040209 Gilby 0498040209 Gilby 0403090140 Gilby 0403090140 2019 ANNUAL REPORT Page | 60 WHITEBARK ENERGY LTD Shareholder Information Area Lessor/Crown # Rights Held Area Lessor/Crown # Rights Held Active WI % Area Lessor/Crown # Rights Held Gilby 0403090140 Gilby 0499030408 Gilby 26889 Gilby 0404080460 Gilby HENDERSON Gilby HENDERSON Gilby KENT Gilby KENT Gilby HENDERSEN Gilby HENDERSEN Gilby DEBERNARDI TWP 46-RGE 2-W5M 10 PNG from top CARDIUM to base CARDIUM Excluding WELLBORE PROD Tract 1 TWP 46-RGE 2-W5M 10 WELLBORE PROD Tract 1 TWP 45-RGE 1-W5M 14(LSD 1, 8),N14 PNG from surface to base MANNVILLE Tract 1 TWP 45-RGE 1-W5M SW14 TWP 45-RGE 1-W5M 14(LSD 2,7) PNG from surface to base MANNVILLE Tract 1 TWP 45-RGE 2-W5M 4 NG from top LOWER MANNVILLE to base LOWER MANNVILLE Tract 1 TWP 43-RGE 28-W4M SE1 NG from surface to basement Excluding NG from base BELLY RIVER to base BANFF NG from top CARDIUM to base CARDIUM Tract 1 TWP 43-RGE 28-W4M SE1 NG from base BELLY RIVER to base BANFF Excluding NG from top CARDIUM to base CARDIUM Tract 1 TWP 43-RGE 28-W4M SE1 NG from surface to basement Excluding NG from base BELLY RIVER to base BANFF NG from top CARDIUM to base CARDIUM Tract 1 TWP 43-RGE 28-W4M SE1 NG from base BELLY RIVER to base BANFF Excluding NG from top CARDIUM to base CARDIUM Tract 1 TWP 43-RGE 28-W4M SE1 NG from surface to basement Excluding NG from base BELLY RIVER to base BANFF NG from top CARDIUM to base CARDIUM Tract 1 TWP 43-RGE 28-W4M SE1 NG from base BELLY RIVER to base BANFF Excluding NG from top CARDIUM to base CARDIUM Tract 1 TWP 42-RGE 28-W4M NE35 NG from surface to basement Excluding NG from top MANNVILLE to base MANNVILLE Gilby DEBERNARDI Gilby DEBERNARDI Gilby DEBERNARDI Gilby PRAIRIESKY Gilby 0400050335 8 15 15 30 30 5 Gilby 0400050335 30 5 30 5 30 Gilby 0400050335 Gilby 0400050335 Gilby 0406060795 Gilby 0404010098 Gilby 0404010098 Gilby 0403030271 Gilby 0403030271 Tract 1 TWP 42-RGE 28-W4M NE35 NG from top MANNVILLE to base MANNVILLE Tract 1 TWP 42-RGE 28-W4M NE35 NG from surface to basement Excluding NG from top MANNVILLE to base MANNVILLE Tract 1 TWP 42-RGE 28-W4M NE35 NG from top MANNVILLE to base MANNVILLE Tract 1 TWP 42-RGE 28-W4M NW35 TWP 42-RGE 28-W4M S35 NG from top GLAUCONITIC to base GLAUCONITIC Tract 1 TWP 42-RGE 3-W5M 6 PNG from base EDMONTON to base MANNVILLE Excluding PNG from top CARDIUM to base CARDIUM Excluding PNG from top ELLERSLIE to base ELLERSLIE Tract 1 TWP 42-RGE 3-W5M 6 WELLBORE Tract 1 TWP 42-RGE 3-W5M 6 PNG from top CARDIUM to base CARDIUM Tract 1 TWP 42-RGE 3-W5M 6 PNG from top ELLERSLIE to base ELLERSLIE Tract 1 TWP 40-RGE 1-W5M SW36 PNG from base EDMONTON to base MANNVILLE Tract 1 TWP 41-RGE 28-W4M E8 TWP 41-RGE 28-W4M W8 PNG from surface to base MANNVILLE Excluding PNG from top GLAUCONITIC to base MANNVILLE Excluding WELLBORE PROD Tract 2 TWP 41-RGE 28-W4M E8 TWP 41-RGE 28-W4M W8 PNG from top GLAUCONITIC to base MANNVILLE WELLBORE PROD Tract 1 TWP 40-RGE 28-W4M 11 PNG from base EDMONTON to base MANNVILLE Excluding WELLBORE PROD Tract 1 TWP 40-RGE 28-W4M 11 2019 ANNUAL REPORT Active WI % 8 30 8 8 Gilby VANDESHEE Gilby 1450462 AB Gilby SPADY Gilby LIVERMORE 19 Gilby PAGET Gilby JOHNSTON Gilby JOHNSTON Gilby SIMPSON/SAXING E Gilby REITSMA ET AL Gilby JOHANSSON Gilby KRAUSE Gilby CUPID Gilby CUPID 19 19 19 30 12 10 20 18 Gilby CUPID Active WI % 30 30 30 30 30 30 30 30 30 30 30 30 30 30 WELLBORE PROD Tract 1 TWP 39-RGE 28-W4M SW25 PNG from base EDMONTON to base MANNVILLE PET from top ELLERSLIE to base ELLERSLIE Tract 1 TWP 39-RGE 28-W4M SE25 PNG from base EDMONTON to base MANNVILLE Tract 1 TWP 39-RGE 28-W4M SE25 PNG from base EDMONTON to base MANNVILLE Tract 1 TWP 39-RGE 28-W4M SE25 PNG from base EDMONTON to base MANNVILLE Tract 1 TWP 39-RGE 28-W4M SE25 PNG from base EDMONTON to base MANNVILLE Tract 1 TWP 39-RGE 28-W4M SE25 PNG from base EDMONTON to base MANNVILLE Tract 1 TWP 39-RGE 28-W4M SE25 PNG from base EDMONTON to base MANNVILLE Tract 1 TWP 39-RGE 28-W4M SE25 PNG from base EDMONTON to base MANNVILLE Tract 1 TWP 39-RGE 28-W4M SW25 PNG from base EDMONTON to base MANNVILLE Excluding PET from top ELLERSLIE to base ELLERSLIE Tract 1 TWP 39-RGE 28-W4M SW25 PNG from base EDMONTON to base MANNVILLE Excluding PET from top ELLERSLIE to base ELLERSLIE Tract 1 TWP 39-RGE 28-W4M SW25 PNG from base EDMONTON to base MANNVILLE Excluding PET from top ELLERSLIE to base ELLERSLIE Tract 1 TWP 39-RGE 28-W4M SE25 PNG from base EDMONTON to base MANNVILLE Tract 1 TWP 39-RGE 28-W4M SW25 PNG from base EDMONTON to base MANNVILLE Tract 1 TWP 39-RGE 28-W4M NE25 Page | 61 Area Lessor/Crown # Rights Held Active WI % Area Lessor/Crown # Rights Held Active WI % WHITEBARK ENERGY LTD Shareholder Information Area Lessor/Crown # Rights Held Gilby CUPID PNG from base EDMONTON to base MANNVILLE Tract 1 TWP 39-RGE 28-W4M NW25 PNG from base EDMONTON to base MANNVILLE Active WI % 30 Gilby HUEPPELSHEUSER Tract 1 30 TWP 39-RGE 28-W4M SE25 PNG from base EDMONTON to base MANNVILLE Gilby HUEPPELSHEUSER Tract 1 30 TWP 39-RGE 28-W4M SW25 PNG from base EDMONTON to base MANNVILLE Gilby HUEPPELSHEUSER Tract 1 30 TWP 39-RGE 28-W4M NE25 PNG from base EDMONTON to base MANNVILLE Gilby HUEPPELSHEUSER Tract 1 30 TWP 39-RGE 28-W4M NW25 PNG from base EDMONTON to base MANNVILLE Gilby HUEPPELSHEUSER Tract 1 30 TWP 39-RGE 28-W4M SE25 PNG from base EDMONTON to base MANNVILLE Gilby HUEPPELSHEUSER Tract 1 30 TWP 39-RGE 28-W4M SW25 PNG from base EDMONTON to base MANNVILLE Gilby HUEPPELSHEUSER Tract 1 30 TWP 39-RGE 28-W4M NE25 PNG from base EDMONTON to base MANNVILLE Gilby HUEPPELSHEUSER Tract 1 30 TWP 39-RGE 28-W4M NW25 PNG from base EDMONTON to basement Gilby FEAGAN Gilby FEAGAN Gilby FEAGAN Gilby SEIGFRIED Gilby SIEGFRIED Gilby SIEGFRIED Gilby SIEGFRIED Gilby SVENSON Gilby LIVINGSTONE Gilby HUEPPELSHEUSER Tract 1 30 Gilby BIGLANDS TWP 39-RGE 28-W4M SE25 PNG from base EDMONTON to base MANNVILLE Gilby HUEPPELSHEUSER Tract 1 30 TWP 39-RGE 28-W4M SW25 PNG from base EDMONTON to base MANNVILLE Gilby HUEPPELSHEUSER Tract 1 30 TWP 39-RGE 28-W4M NE25 PNG from base EDMONTON to base MANNVILLE Gilby HUEPPELSHEUSER Tract 1 30 TWP 39-RGE 28-W4M NW25 PNG from base EDMONTON to base MANNVILLE Gilby HUEPPELSHEUSER Tract 1 30 TWP 39-RGE 28-W4M SE25 PNG from base EDMONTON to base MANNVILLE Gilby BIGLANDS Gilby LANDRY Gilby LANDRY ET AL Gilby 1506168 Gilby HUTTON EST. Gilby HUEPPELSHEUSER Tract 1 30 Gilby BUTCHER ETAL TWP 39-RGE 28-W4M SW25 PNG from base EDMONTON to base MANNVILLE Tract 1 30 Gilby FEAGAN Gilby 0408020332 TWP 39-RGE 28-W4M SE25 PNG from base EDMONTON to base MANNVILLE Tract 1 TWP 39-RGE 28-W4M SW25 PNG from base EDMONTON to base MANNVILLE Tract 1 TWP 39-RGE 28-W4M NE25 PNG from base EDMONTON to base MANNVILLE Tract 1 TWP 39-RGE 28-W4M NW25 PNG from base EDMONTON to base MANNVILLE Tract 1 TWP 39-RGE 28-W4M SE25 PNG from base EDMONTON to base MANNVILLE Tract 1 TWP 39-RGE 28-W4M SW25 PNG from base EDMONTON to base MANNVILLE Tract 1 TWP 39-RGE 28-W4M NE25 PNG from base EDMONTON to base MANNVILLE Tract 1 TWP 39-RGE 28-W4M NW25 PNG from base EDMONTON to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SW25 PNG from surface to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M NW25 PNG from surface to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M NW25 PNG from surface to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M NW25 PNG from surface to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SE25 PNG from surface to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SE25 PNG from surface to base MANNVILLE Tract 1 TWP 40-RGE 28-W4M NW13 NG from surface to basement Tract 1 TWP 40-RGE 1-W5M SE25 PNG from surface to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M NE25 PNG from surface to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 Gilby 0405120574 Gilby DODD Gilby LEDINGHAM Gilby DODD Gilby WORSLEY Gilby BROWNLOW Gilby 0401030226 Gilby HUDSON Gilby TAYLOR Gilby ANGUS Gilby ANGUS Gilby 0406060796 Gilby 0406060794 NE25 PNG from surface to base MANNVILLE Tract 1 TWP 39-RGE 28-W4M 24 PNG from base EDMONTON to base MANNVILLE Excluding CBM Tract 1 TWP 40-RGE 1-W5M SW25 PNG from surface to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SW25 PNG from surface to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SW25 PNG from surface to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SW25 PNG from surface to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M NE25 PNG from surface to base MANNVILLE Excluding PET from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 28-W4M 12 PNG from surface to base MANNVILLE Excluding WELLBORE PROD Tract 1 TWP 40-RGE 1-W5M SW25 PNG from surface to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SW25 PNG from surface to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SW26 ASSOC GAS from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SW26 NG from surface to base BANFF Excluding ASSOC GAS from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M NE36 PNG from base EDMONTON to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SE36 PNG from base EDMONTON to base MANNVILLE 30 30 30 30 30 30 3 30 30 14 30 30 30 Gilby ENCANA M106095 Tract 1 21 Gilby 0408030204 TWP 42-RGE 1-W5M 33 NG from top ELLERSLIE to base ELLERSLIE Excluding CBM Tract 1 TWP 43-RGE 1-W5M NW3 PNG from surface to base MANNVILLE Excluding PET from 15 2019 ANNUAL REPORT Page | 62 Area Lessor/Crown # Rights Held Active WI % Area Lessor/Crown # Rights Held Active WI % Area Lessor/Crown # Rights Held Active WI % WHITEBARK ENERGY LTD Shareholder Information Gilby 0408030204 Gilby 0408030204 Gilby 0408030204 Gilby BROOKS Gilby 0404050581 Gilby 0402040090 12 11 15 30 5 18 top ELLERSLIE to base ELLERSLIE Tract 1 TWP 43-RGE 1-W5M SW3 PET from top ELLERSLIE to base ELLERSLIE Tract 1 TWP 43-RGE 1-W5M NW3 PET from top ELLERSLIE to base ELLERSLIE Tract 1 TWP 43-RGE 1-W5M SW3 PNG from surface to base MANNVILLE Excluding PET from top ELLERSLIE to base ELLERSLIE Tract 1 TWP 40-RGE 1-W5M SW25 PNG from surface to base MANNVILLE Tract 1 TWP 43-RGE 28-W4M E1 NG from base BELLY RIVER to base MANNVILLE Excluding NG from top CARDIUM to base CARDIUM Tract 1 TWP 43-RGE 1-W5M 4 PNG from top LEA PARK to base MANNVILLE Gilby ENCANA M094775 Tract 1 11 TWP 43-RGE 1-W5M 3 NG from top ELLERSLIE to base ELLERSLIE Excluding CBM Gilby ENCANA M094778 Tract 1 11 TWP 43-RGE 1-W5M NW3 PET from top ELLERSLIE to base ELLERSLIE Gilby ENCANA M094779 Tract 1 11 TWP 43-RGE 1-W5M SE3 PET from top ELLERSLIE to base ELLERSLIE Gilby ENCANA M094780 Tract 1 12 TWP 43-RGE 1-W5M SW3 PET from top ELLERSLIE to base ELLERSLIE Gilby ENCANA M106096 Tract 1 21 Gilby PATTON Gilby PATTON Gilby MILES Gilby MILES Gilby GELSING Gilby GELSING Gilby CARSON Gilby CARSON Gilby FRIZZELL Gilby FRIZZELL Gilby 0405120589 Gilby MILES Gilby MILES TWP 42-RGE 1-W5M NE33 PET from top ELLERSLIE to base ELLERSLIE Tract 1 TWP 40-RGE 27-W4M SW18,NE18 PNG from base BELLY RIVER to base MANNVILLE Excluding CBM from top MANNVILLE to base MANNVILLE Excluding WELLBORE Tract 1 TWP 40-RGE 1-W5M SE26 ASSOC GAS from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SE26 PNG from surface to basement 21 Gilby BALL ET AL Gilby BALL ET AL 14 20 Gilby LAVERY Gilby LAVERY 2019 ANNUAL REPORT Excluding ASSOC GAS from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SE26 ASSOC GAS from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SE26 PNG from surface to basement Excluding ASSOC GAS from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SE26 ASSOC GAS from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SE26 PNG from surface to basement Excluding ASSOC GAS from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SW26 ASSOC GAS from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SW26 PNG from surface to basement Excluding ASSOC GAS from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SW26 ASSOC GAS from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SW26 PNG from surface to basement Excluding ASSOC GAS from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SW26 ASSOC GAS from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SW26 PNG from surface to basement Excluding ASSOC GAS from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SE26 ASSOC GAS from surface to base BANFF Tract 1 TWP 40-RGE 1-W5M SE26 Excluding ASSOC GAS from surface to base BANFF PNG from surface to base BANFF Tract 1 TWP 40-RGE 1-W5M SW26 ASSOC GAS from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M 14 20 14 20 14 30 14 30 14 30 14 30 14 30 Gilby LANSALL Gilby LANSALL Gilby PETERSON Gilby PETERSON Gilby 122791 Gilby 122791 Gilby PRAIRIESKY Gilby PRAIRIESKY Gilby PRAIRIESKY Gilby 33854 Gilby 33854 Gilby 33854 14 30 14 30 3 3 2 3 1 1 1 1 SW26 PNG from surface to basement Excluding ASSOC GAS from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SW26 ASSOC GAS from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SW26 PNG from surface to basement Excluding ASSOC GAS from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SW26 ASSOC GAS from top MANNVILLE to base MANNVILLE Tract 1 TWP 40-RGE 1-W5M SW26 PNG from surface to basement Excluding ASSOC GAS from top MANNVILLE to base MANNVILLE Tract 1 TWP 41-RGE 2-W5M 31 PNG from base EDMONTON to top GLAUCONITIC Tract 1 TWP 41-RGE 2-W5M 31 PNG from top GLAUCONITIC to base MANNVILLE Tract 1 TWP 42-RGE 3-W5M 7 NG from surface to top MISSISSIPPIAN Excluding NG from top MANNVILLE to base GLAUCONITIC Excluding NG from top ELLERSLIE to base ELLERSLIE Excluding NG from top NORDEGG to base NORDEGG Excluding WELLBORE PROD Tract 1 TWP 42-RGE 3-W5M 7 NG from top MANNVILLE to base GLAUCONITIC Tract 1 TWP 42-RGE 3-W5M 7 NG from top ELLERSLIE to base ELLERSLIE NG from top NORDEGG to base NORDEGG Tract 1 TWP 41-RGE 3-W5M 36 PNG from base EDMONTON to base OSTRACOD Tract 1 TWP 41-RGE 3-W5M 36 PNG from base OSTRACOD to base JURASSIC Excluding WELLBORE PROD Tract 1 TWP 41-RGE 3-W5M 36 Page | 63 WHITEBARK ENERGY LTD Shareholder Information Active WI % 8 Area Lessor/Crown # Rights Held Active WI % Area Lessor/Crown # Rights Held Active WI % Area Lessor/Crown # Rights Held Gilby 0497080281 Gilby MOORE ET AL Gilby MOORE ET AL Gilby MOORE ET AL Gilby MOORE ET AL Gilby MOORE ET AL Gilby MOORE ET AL Gilby MOORE ET AL Gilby MOORE ET AL Gilby MOORE ET AL Gilby MOORE ET AL Gilby 0401120262 Gilby 0401120262 Gilby 0401120262 WELLBORE PROD Tract 1 TWP 42-RGE 3-W5M 24 PNG from base GLAUCONITIC to base MANNVILLE Tract 1 TWP 42-RGE 2-W5M SE19 PNG from surface to top OSTRACOD Excluding NG from surface to top OSTRACOD Tract 1 TWP 42-RGE 2-W5M SE19 NG from surface to top OSTRACOD Excluding WELLBORE PROD Tract 1 TWP 42-RGE 2-W5M SE19 WELLBORE PROD Tract 1 TWP 42-RGE 2-W5M SE19 PNG from top OSTRACOD to base BANFF Excluding NG from top OSTRACOD to base JURASSIC Tract 1 TWP 42-RGE 2-W5M SE19 NG from top OSTRACOD to base JURASSIC Excluding WELLBORE Tract 1 TWP 42-RGE 2-W5M NE19 PNG from surface to top OSTRACOD Excluding NG from surface to top OSTRACOD Tract 1 TWP 42-RGE 2-W5M NE19 NG from surface to top OSTRACOD Excluding WELLBORE Tract 1 TWP 42-RGE 2-W5M NE19 WELLBORE Tract 1 TWP 42-RGE 2-W5M NE19 PNG from top OSTRACOD to base BANFF Excluding NG from top OSTRACOD to base JURASSIC Tract 1 TWP 42-RGE 2-W5M NE19 NG from top OSTRACOD to base JURASSIC Excluding WELLBORE Tract 1 TWP 42-RGE 2-W5M E19 PNG from surface to top OSTRACOD Excluding NG from surface to top OSTRACOD Tract 1 TWP 42-RGE 2-W5M E19 NG from surface to top OSTRACOD Excluding WELLBORE Tract 1 TWP 42-RGE 2-W5M E19 WELLBORE PROD 8 3 2 3 8 4 3 2 3 8 4 3 2 3 2019 ANNUAL REPORT Gilby 0401120262 Gilby 0401120262 Gilby PRAIRIESKY Gilby 0505070277 Gilby 0505070277 Gilby 0505070277 Gilby 0501020179 Gilby 0501020179 Gilby 5406060285 Gilby 0507050333 Gilby 0507050333 Gilby 0507050333 Gilby 0507050333 Gilby 0502080498 Gilby 0505070276 Tract 1 TWP 42-RGE 2-W5M E19 PNG from top OSTRACOD to base BANFF Excluding NG from top OSTRACOD to base JURASSIC Tract 1 TWP 42-RGE 2-W5M E19 NG from top OSTRACOD to base JURASSIC Excluding WELLBORE Tract 1 TWP 42-RGE 3-W5M SE7 PET from top ELLERSLIE to base ELLERSLIE PET from top NORDEGG to base NORDEGG Tract 1 TWP 55-RGE 17-W5M N7 PNG from surface to base CARDIUM Tract 1 TWP 55-RGE 17-W5M N7 PNG from base CARDIUM to base FISH SCALE Tract 1 TWP 55-RGE 17-W5M N7 PNG from base FISH SCALE to base ROCK CREEK Tract 1 TWP 55-RGE 17-W5M S7 PNG from base CARDIUM to base FISH SCALE Tract 1 TWP 55-RGE 17-W5M S7 PNG from base FISH SCALE to base ROCK CREEK Tract 1 TWP 55-RGE 17-W5M 8 PNG from base BLUESKY-BULLHEAD to base ROCK CREEK Tract 1 TWP 54-RGE 18-W5M N35,SW35 PNG from surface to top CARDIUM Tract 1 TWP 54-RGE 18-W5M NE35 PNG from top CARDIUM to base CARDIUM Tract 1 TWP 54-RGE 18-W5M W35 PNG from top CARDIUM to base CARDIUM Tract 1 TWP 54-RGE 18-W5M 35 PNG from base CARDIUM to base SPIRIT RIVER PNG from base BLUESKY to base BLUESKY-BULLHEAD Tract 1 TWP 55-RGE 17-W5M 5 PNG from surface to base CARDIUM Tract 1 TWP 55-RGE 17-W5M S7 Gilby 0507050334 Gilby 0507050334 4 1 Gilby 0505080141 Gilby 5496050091 Gilby BALL Gilby BALL Gilby 0508080372 Leaman 112437 8 8 8 8 8 30 30 Leaman 112437 6 Leaman 112438 12 30 19 Leaman 0599050113 Leaman 815 30 Leaman 815 12 30 30 6 14 30 10 13 14 13 20 13 14 PNG from surface to base CARDIUM Tract 1 TWP 54-RGE 18-W5M 36 PNG from top CARDIUM to base CARDIUM Tract 1 TWP 54-RGE 18-W5M 36 PNG from surface to base VIKING Excluding PNG from top CARDIUM to base CARDIUM Tract 1 TWP 55-RGE 17-W5M S6,NE6 PNG from surface to base CARDIUM Tract 1 TWP 54-RGE 18-W5M SE35 PNG from top CARDIUM to base CARDIUM Tract 1 TWP 40-RGE 1-W5M SE26 ASSOC GAS from surface to base BANFF Tract 1 TWP 40-RGE 1-W5M SE26 Excluding ASSOC GAS from surface to base BANFF PNG from surface to base BANFF Tract 1 TWP 46-RGE 6-W5M SE22,N22 PNG from base BELLY RIVER to base CARDIUM Tract 1 TWP 56-RGE 8-W5M W34 PNG from top SURFACE to base PEKISKO Excluding NG from top VIKING to base VIKING Excluding NG from top DETRITAL SANDSTONE to base DETRITAL SANDSTONE Tract 1 TWP 56-RGE 8-W5M W34 WELLBORE ONLY Tract 1 TWP 57-RGE 8-W5M SW3 PNG from surface to base PEKISKO Excluding NG from top DETRITAL to base DETRITAL Excluding NG from top VIKING to base VIKING Tract 1 TWP 56-RGE 8-W5M 11 CBM from surface to base EDMONTON Tract 1 TWP 57-RGE 8-W5M S9 NG from top JURASSIC to base JURASSIC NG from top PEKISKO to base PEKISKO Excluding WELLBORE ONLY Tract 1 TWP 57-RGE 8-W5M S9 Page | 64 Active WI % 13 14 20 15 14 13 14 13 13 14 5 3 5 5 5 Area Lessor/Crown # Rights Held Leaman 816 Leaman 816 Leaman 0597100806 Leaman 1043 Leaman 1043 Leaman 38527 Leaman 38527 Leaman 360 Leaman 360 Leaman 360 Leaman 0593100167 Leaman 0593100167 Leaman 0597100807 Leaman 0597100807 Leaman 0597100807 Leaman 5497020047 WELLBORE ONLY Tract 1 TWP 57-RGE 8-W5M N9,16 NG from top JURASSIC to base JURASSIC Tract 1 TWP 57-RGE 8-W5M N9,16 WELLBORE ONLY Tract 1 TWP 55-RGE 9-W5M 14 PNG from surface to base VIKING Tract 1 TWP 57-RGE 8-W5M 15 NG from top JURASSIC to base JURASSIC Excluding WELLBORE ONLY Tract 1 TWP 57-RGE 8-W5M 15 WELLBORE ONLY Tract 1 TWP 56-RGE 8-W5M SE34 PNG from surface to base PEKISKO Tract 1 TWP 56-RGE 8-W5M SE34 WELLBORE ONLY Tract 1 TWP 57-RGE 8-W5M S3 TWP 56-RGE 8-W5M N34,SW34 NG from top VIKING to base VIKING Tract 1 TWP 56-RGE 8-W5M N34,SW34 TWP 57-RGE 8-W5M S3 NG from top DETRITAL SANDSTONE to base DETRITAL SANDSTONE Tract 1 TWP 56-RGE 8-W5M N34,SW34 TWP 57-RGE 8-W5M S3 WELLBORE ONLY Tract 1 TWP 53-RGE 9-W5M 10 CBM from surface to base PEKISKO Tract 1 TWP 53-RGE 9-W5M 10 PNG from surface to base PEKISKO Excluding CBM Tract 1 TWP 57-RGE 11-W5M NW32,SE32 PNG from base ELLERSLIE to base PEKISKO Tract 1 TWP 57-RGE 11-W5M NW32,SE32 TWP 58-RGE 11-W5M 4 CBM from surface to base EDMONTON Tract 1 TWP 58-RGE 11-W5M 4 PNG from base EDMONTON to base VIKING Tract 1 TWP 57-RGE 11-W5M 35 CBM from surface to 2019 ANNUAL REPORT Area Lessor/Crown # Rights Held Area Lessor/Crown # Rights Held WHITEBARK ENERGY LTD Shareholder Information Leaman 0597090712 Leaman 5417030207 Leaman 5417030207 Leaman 0517090172 Leaman 5417090210 Leaman 5417110139 Leaman 0594100562 Leaman 0584080106 Leaman 5417120215 Leaman 0519030066 Leaman 0519030066 Leaman 0519030071 Leaman 0519030071 Leaman 0519050104 Leaman 0519030067 Active WI % 6 20 10 20 20 Leaman 0519030067 Leaman 0519030068 Leaman 0519030068 Leaman 0519030070 Leaman 0519030070 Leaman 0519030069 20 Leaman 0519030069 4 10 20 20 14 20 Leaman 0519030069 Leaman 0518110086 Leaman 0518110086 Leaman 0518110086 Leaman 0519010066 Leaman 0519010066 Leaman 0519010067 14 Leaman 0519010067 20 Leaman 0519030073 20 14 Leaman 0519030073 Leaman 0519030074 base MANNVILLE Tract 1 TWP 57-RGE 11-W5M SE4 PNG from surface to base MANNVILLE Tract 1 TWP 57-RGE 9-W5M NE16,S16,20,21 PNG from surface to base BASEMENT Excluding WELLBORE Tract 2 TWP 57-RGE 9-W5M NW16 PNG from base NORDEGG to base BASEMENT Tract 1 TWP 57-RGE 9-W5M 20 WELLBORE Tract 1 TWP 53-RGE 9-W5M E26 PNG from surface to base BASEMENT Tract 1 TWP 53-RGE 9-W5M 22 PNG from surface to base BASEMENT Tract 1 TWP 54-RGE 9-W5M 13,24 PNG from surface to base BASEMENT Tract 1 TWP 53-RGE 9-W5M N21,SE21 PNG from surface to base PEKISKO Excluding CBM from surface to base MANNVILLE Tract 1 TWP 53-RGE 8-W5M 27 PNG from surface to base EDMONTON Tract 1 TWP 57-RGE 10-W5M 27 PNG from surface to base BASEMENT Tract 1 TWP 56-RGE 8-W5M NW3 PNG from surface to base BANFF Excluding WELLBORE PROD Tract 1 TWP 56-RGE 8-W5M NW3 WELLBORE ONLY Tract 1 TWP 56-RGE 8-W5M SW28 PNG from surface to base BANFF Excluding WELLBORE PROD Tract 1 TWP 56-RGE 8-W5M SW28 WELLBORE ONLY Tract 1 TWP 57-RGE 9-W5M 24 PNG from surface to base NORDEGG Tract 1 TWP 56-RGE 8-W5M NE17 PNG from surface to base PEKISKO Excluding WELLBORE PROD Tract 1 TWP 56-RGE 8-W5M NE17 WELLBORE ONLY Active WI % 13 20 8 20 14 20 14 13 20 20 10 20 14 20 14 20 13 20 Tract 1 TWP 56-RGE 8-W5M NE17 WELLBORE ONLY Tract 1 TWP 56-RGE 8-W5M NE19 PNG from surface to base PEKISKO Excluding WELLBORE PROD Tract 1 TWP 56-RGE 8-W5M NE19 WELLBORE ONLY Tract 1 TWP 56-RGE 8-W5M SW21 PNG from surface to base BANFF Excluding WELLBORE PROD Tract 1 TWP 56-RGE 8-W5M SW21 WELLBORE ONLY Tract 1 TWP 56-RGE 8-W5M S20 PNG from surface to base PEKISKO Excluding WELLBORE PROD Tract 1 TWP 56-RGE 8-W5M SE20 WELLBORE ONLY Tract 1 TWP 56-RGE 8-W5M S20 WELLBORE ONLY Tract 1 TWP 55-RGE 9-W5M 22 PNG from top SURFACE to base MANNVILLE Tract 1 TWP 55-RGE 9-W5M 22 PNG from base MANNVILLE to base PEKISKO Excluding WELLBORE Tract 1 TWP 55-RGE 9-W5M 22 WELLBORE ONLY Tract 1 TWP 57-RGE 8-W5M 19 PNG from surface to base BANFF Excluding WELLBORE Tract 1 TWP 57-RGE 8-W5M 19 WELLBORE ONLY Tract 1 TWP 57-RGE 8-W5M 30 PNG from surface to base BANFF Excluding WELLBORE Tract 1 TWP 57-RGE 8-W5M 30 WELLBORE ONLY Tract 1 TWP 56-RGE 8-W5M SE32 PNG from surface to base BANFF Excluding WELLBORE PROD Tract 1 TWP 56-RGE 8-W5M SE32 WELLBORE ONLY Tract 1 TWP 56-RGE 9-W5M NE25 PNG from surface to base PEKISKO Page | 65 10 Leaman 0519030067 WHITEBARK ENERGY LTD Shareholder Information Area Lessor/Crown # Rights Held Active WI % Active WI % 8 20 Leaman 31640 Leaman 31640 Area Lessor/Crown # Rights Held Active WI % Area Lessor/Crown # Rights Held Leaman 0519030074 Leaman 21631 Leaman 0596050319 Leaman 0595030612 Leaman 1304B Leaman 1304B Leaman 21810 Leaman 21811 Leaman 0597120230 Leaman 0586020328 Leaman 0586020328 Leaman 0594030698 Leaman 5404040707 Leaman 0585090110 Leaman 0585090110 Leaman 0585090110 Leaman 0585080381 Excluding WELLBORE PROD Tract 1 TWP 56-RGE 9-W5M NE25 WELLBORE ONLY Tract 1 TWP 54-RGE 8-W5M 12 PNG from surface to base NORDEGG Tract 1 TWP 54-RGE 8-W5M 2 PNG from surface to base MANNVILLE Excluding PNG from top NOTIKEWIN to base NOTIKEWIN Tract 1 TWP 55-RGE 8-W5M 15 PNG from surface to base NORDEGG Tract 1 TWP 58-RGE 8-W5M SE10 NG from top NORDEGG to base NORDEGG Tract 1 TWP 58-RGE 8-W5M 4 NG from top NORDEGG to base NORDEGG NG from top PEKISKO to base PEKISKO Tract 1 TWP 58-RGE 8-W5M SW10 PNG from surface to base NORDEGG Tract 1 TWP 58-RGE 8-W5M N10 PNG from surface to base NORDEGG Tract 1 TWP 57-RGE 9-W5M 3 PNG from surface to base NORDEGG Tract 1 TWP 57-RGE 9-W5M 10 PNG from surface to base NORDEGG Tract 1 TWP 57-RGE 9-W5M 10 WELLBORE ONLY from surface to basement Tract 1 TWP 55-RGE 8-W5M 22 PNG from surface to base NORDEGG Tract 1 TWP 56-RGE 9-W5M N2,SW2 PNG from surface to base NORDEGG Tract 1 TWP 57-RGE 9-W5M 32 PNG from surface to top NORDEGG Excluding WELLBORE Tract 1 TWP 57-RGE 9-W5M 32 WELLBORE ONLY Tract 1 TWP 57-RGE 9-W5M 32 PNG from top NORDEGG to base NORDEGG Tract 1 TWP 57-RGE 9-W5M NW16 WELLBORE ONLY 14 20 12 20 20 20 20 20 8 8 20 20 13 17 20 17 20 2019 ANNUAL REPORT Leaman 0585080381 Leaman 0585080381 Leaman 0585090107 Leaman 0585090107 Leaman 0585090107 Leaman 0578120076 Leaman 0578120076 Leaman 0578120076 Leaman 31640 Leaman 31640 Leaman 31640 Leaman 31640 Leaman 31640 Leaman 31640 Leaman 31640 Leaman 31640 Leaman 31640 Tract 1 TWP 57-RGE 9-W5M NW16 PNG from surface to base NORDEGG Tract 1 TWP 57-RGE 9-W5M 28 PNG from top NORDEGG to base NORDEGG Excluding CBM Tract 1 TWP 57-RGE 9-W5M 17 PNG from surface to top NORDEGG Tract 1 TWP 57-RGE 9-W5M 17 PNG from top NORDEGG to base NORDEGG Tract 1 TWP 57-RGE 9-W5M 17 WELLBORE ONLY Tract 1 TWP 58-RGE 10-W5M SE1,N1 PET from surface to base NORDEGG Tract 1 TWP 58-RGE 10-W5M SE1,N1 NG from surface to top NORDEGG Tract 1 TWP 58-RGE 10-W5M SE1,N1 NG from top NORDEGG to base NORDEGG Tract 1 TWP 57-RGE 9-W5M 30 PNG from surface to base NORDEGG Tract 1 TWP 57-RGE 10-W5M S13 PNG from top NORDEGG to base NORDEGG Tract 1 TWP 57-RGE 10-W5M S13 PNG from surface to top NORDEGG Tract 1 TWP 57-RGE 10-W5M NW13 PNG from surface to top NORDEGG Tract 1 TWP 57-RGE 10-W5M E23,SW23 PNG from surface to top NORDEGG Excluding NG from surface to base EDMONTON Tract 1 TWP 57-RGE 10-W5M E23,SW23 PNG from top NORDEGG to base NORDEGG Tract 1 TWP 57-RGE 10-W5M 25 PNG from surface to base NORDEGG Tract 1 TWP 57-RGE 10-W5M NW13 PNG from top NORDEGG to base NORDEGG Tract 1 TWP 57-RGE 10-W5M SW24 TWP 57-RGE 10-W5M N24 8 Leaman 31640A 12 Leaman 0578080076 20 Leaman 0578080076 3 2 2 7 6 7 5 4 3 9 6 4 Leaman 0578080077 Leaman 0578080077 Leaman CRESTAR Leaman CRESTAR Leaman CRESTAR Leaman 057812A073 Leaman 31639 Leaman 0578120073 Leaman 37586 Leaman 37586 Leaman 0579120177 Leaman 0579120177 3 7 7 7 20 7 3 3 3 3 7 3 7 5 5 10 5 PNG from surface to base NORDEGG Tract 1 TWP 57-RGE 10-W5M E23,SW23 NG from surface to base EDMONTON Tract 1 TWP 57-RGE 10-W5M 26 PNG from surface to base NORDEGG Tract 1 TWP 57-RGE 9-W5M 19 PNG from surface to base NORDEGG Tract 1 TWP 57-RGE 9-W5M 31 PNG from surface to base NORDEGG Excluding WELLBORE PROD Tract 1 TWP 57-RGE 9-W5M 31 WELLBORE PROD Tract 1 TWP 57-RGE 10-W5M 35 PNG from top NORDEGG to base NORDEGG Tract 1 TWP 57-RGE 10-W5M 35 PNG from surface to top NORDEGG Tract 1 TWP 57-RGE 10-W5M NW23 PNG from surface to top NORDEGG Excluding NG from surface to base EDMONTON Tract 1 TWP 57-RGE 10-W5M NW23 PNG from top NORDEGG to base NORDEGG Tract 1 TWP 57-RGE 10-W5M NW23 NG from surface to base EDMONTON Tract 1 TWP 57-RGE 9-W5M NW7 PNG from surface to base NORDEGG Tract 1 TWP 57-RGE 9-W5M 4 PNG from surface to base NORDEGG Tract 1 TWP 57-RGE 9-W5M S7,NE7 PNG from surface to base NORDEGG Tract 1 TWP 58-RGE 10-W5M 3 PNG from surface to base NORDEGG Tract 1 TWP 58-RGE 10-W5M 10 PNG from surface to base NORDEGG Tract 1 TWP 57-RGE 10-W5M 34 PNG from surface to base MANNVILLE Tract 1 TWP 57-RGE 10-W5M 34 PNG from base MANNVILLE to base NORDEGG Page | 66 Area Lessor/Crown # Rights Held Leaman 0580020159 Leaman 5497040081 Leaman 0585090109 Leaman 0585090109 Leaman 0591050578 Leaman 0591050578 Leaman 0579120178 Leaman 0590020438 Leaman 0590020438 Leaman 0582010223 Leaman 0582010223 Leaman 0582010223 Leaman 0585100503 Leaman 0585100503 Leaman 0596080466 Leaman 12670 Leaman 12670 Leaman 0504040482 Tract 1 TWP 56-RGE 10-W5M 22 PNG from surface to base MANNVILLE Tract 1 TWP 56-RGE 10-W5M 23 PNG from base MANNVILLE to base NORDEGG Tract 1 TWP 57-RGE 9-W5M 29 PNG from surface to base NORDEGG Excluding WELLBORE Tract 1 TWP 57-RGE 9-W5M 29 WELLBORE ONLY Tract 1 TWP 58-RGE 10-W5M 14 WELLBORE ONLY Tract 1 TWP 58-RGE 10-W5M SE15,N15 PNG from surface to base NORDEGG Tract 1 TWP 58-RGE 10-W5M 4 PNG from surface to base NORDEGG Tract 1 TWP 57-RGE 9-W5M 33 PNG from surface to base NORDEGG Tract 1 TWP 58-RGE 9-W5M 4 PNG from surface to base NORDEGG Tract 1 TWP 58-RGE 9-W5M 29 PNG from surface to base NORDEGG Tract 1 TWP 58-RGE 9-W5M N20 PNG from surface to base NORDEGG Excluding WELLBORE Tract 1 TWP 58-RGE 9-W5M N20 WELLBORE ONLY Tract 1 TWP 58-RGE 9-W5M 5 PNG from top NORDEGG to base NORDEGG Tract 1 TWP 58-RGE 9-W5M 5 PNG from surface to top NORDEGG Tract 1 TWP 58-RGE 9-W5M S22 TWP 58-RGE 9-W5M NE22 TWP 58-RGE 9-W5M NW22 NG from surface to base MANNVILLE Tract 1 TWP 58-RGE 9-W5M S20 PNG from surface to base NORDEGG Excluding WELLBORE Tract 1 TWP 58-RGE 9-W5M S20 WELLBORE ONLY Tract 1 TWP 55-RGE 9-W5M 35 PNG from surface to Active WI % 20 20 18 9 5 4 5 10 20 20 4 10 10 4 5 4 10 13 2019 ANNUAL REPORT Area Lessor/Crown # Rights Held Leaman 0595080624 Leaman 0595080624 Leaman 0595030610 Leaman 26266 Leaman 26266 Leaman 0594110221 Leaman 0594110221 Leaman 0597030415 Leaman 0597030415 Leaman 0597100906 Leaman 0597100906 Leaman 0506070654 Leaman 0506070655 Leaman 0502110177 Leaman 5417030079 Leaman 5417030079 base NORDEGG Tract 1 TWP 55-RGE 8-W5M 4 PNG from surface to base NORDEGG Excluding WELLBORE Tract 1 TWP 55-RGE 8-W5M 4 WELLBORE PROD Tract 1 TWP 55-RGE 8-W5M 9 PNG from surface to base NORDEGG Tract 1 TWP 54-RGE 9-W5M 3 PNG from surface to base MANNVILLE Excluding WELLBORE PROD Tract 1 TWP 54-RGE 9-W5M 3 WELLBORE PROD Tract 1 TWP 54-RGE 9-W5M 10 PNG from top SURFACE to base MANNVILLE Excluding CBM Tract 1 TWP 54-RGE 9-W5M 10 CBM from top SURFACE to base MANNVILLE Tract 1 TWP 54-RGE 9-W5M NE35 PNG from surface to base EDMONTON Tract 1 TWP 54-RGE 9-W5M NW35,S35 PNG from surface to base EDMONTON Tract 1 TWP 55-RGE 9-W5M 13 PNG from surface to base MANNVILLE Tract 1 TWP 55-RGE 9-W5M 12 CBM from surface to base MANNVILLE WELLBORE ONLY Tract 1 TWP 55-RGE 8-W5M NW18 PNG from surface to base NORDEGG Tract 1 TWP 55-RGE 9-W5M NE13 PNG from base MANNVILLE to base NORDEGG Tract 1 TWP 55-RGE 9-W5M 11 PNG from surface to base NORDEGG Tract 1 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 Tract 3 TWP 53-RGE 9-W5M W26 PNG from surface to base PEKISKO WHITEBARK ENERGY LTD Shareholder Information Area Lessor/Crown # Rights Held Active WI % 13 20 13 19 20 Niton 5497010208 Niton 5497010208 Niton 5497010208 Niton CENOVUS ENERGY INC. Niton 0504030331 20 Niton 0504030331 Niton 5497020042 Niton CENOVUS Niton 5497040009 Niton 0597040239 10 20 20 20 20 other LEHET ET AL 13 other SORENSEN, R 20 20 20 20 other BOGGOTT ET AL other HISER ET AL other HISER ET AL other HISER ET AL other HISER ET AL Active WI % 14 20 20 20 20 20 7 20 20 20 5 5 5 20 20 20 5 Tract 1 TWP 56-RGE 12-W5M 27 PNG from surface to base MANNVILLE Excluding WELLBORE Tract 1 TWP 56-RGE 12-W5M 27 WELLBORE PROD Tract 1 TWP 56-RGE 12-W5M 26 PNG from surface to base NOTIKEWIN Tract 1 TWP 56-RGE 12-W5M W23 PNG from base VIKING to base NOTIKEWIN Tract 1 TWP 56-RGE 12-W5M E23 PNG from base VIKING to base NOTIKEWIN Tract 1 TWP 56-RGE 12-W5M E23 PNG from base NOTIKEWIN to base MANNVILLE Tract 1 TWP 56-RGE 12-W5M 28 PNG from surface to base NOTIKEWIN Tract 1 TWP 56-RGE 12-W5M S22 PNG from surface to base MANNVILLE Excluding CBM Tract 1 TWP 56-RGE 12-W5M N22 PNG from surface to base MANNVILLE Tract 1 TWP 56-RGE 12-W5M 14 PNG from surface to base ROCK CREEK Excluding CBM Tract 1 TWP 36-RGE 3-W5M SE5 PET from top CARDIUM to base CARDIUM Tract 1 TWP 36-RGE 3-W5M SE5 PET from top CARDIUM to base CARDIUM Tract 1 TWP 36-RGE 3-W5M SE5 PET from top CARDIUM to base CARDIUM Tract 1 TWP 36-RGE 3-W5M SW5 PET from top CARDIUM to base CARDIUM Tract 1 TWP 36-RGE 3-W5M SW5 PET from surface to base BASEMENT Excluding PET from top CARDIUM to base CARDIUM Tract 1 TWP 36-RGE 3-W5M N5,SW5 NG from surface to basement Tract 1 TWP 36-RGE 3-W5M Page | 67 Area Lessor/Crown # Rights Held Active WI % Area Lessor/Crown # Rights Held Active WI % Area Lessor/Crown # Rights Held Active WI % WHITEBARK ENERGY LTD Shareholder Information 10 20 10 Other 22178A Other 34937 Other 0582080144 Other 0582080144 19 Other 0582080144 Other 058208A144 Other 058208A144 Other 38215 Other 13198 Other 13198 Other 0276080004 other 0486010407 other 0486010407 other GRTC BELLSILE ESTA Other 0502030291 Other 29397 Other 0417020121 5 0 20 10 10 1 10 3 10 1 base MANNVILLE Excluding WELLBORE Tract 1 TWP 68-RGE 3-W5M SW36 PNG from surface to top GILWOOD Excluding PNG from surface to base MANNVILLE Tract 1 TWP 68-RGE 2-W5M SW19 PNG from surface to base MANNVILLE Excluding WELLBORE Tract 1 TWP 61-RGE 4-W5M 31 PNG from surface to base MANNVILLE Tract 1 TWP 61-RGE 4-W5M 31 WELLBORE PROD Tract 1 TWP 61-RGE 4-W5M 31 WELLBORE ONLY Tract 1 TWP 61-RGE 4-W5M 30 PNG from surface to base MANNVILLE Tract 1 TWP 61-RGE 4-W5M 30 WELLBORE PROD Tract 1 TWP 61-RGE 4-W5M N36,SE36 PNG from surface to base VIKING Tract 1 TWP 61-RGE 5-W5M NE30 PNG from surface to base UPPER MANNVILLE Excluding NG from top UPPER MANNVILLE to base UPPER MANNVILLE Tract 1 TWP 61-RGE 5-W5M NE30 PNG from base UPPER MANNVILLE to base BANFF Tract 1 TWP 61-RGE 5-W5M S30,NW30 NG from top BANFF to base BANFF Tract 1 TWP 56-RGE 1-W5M E17 PNG from surface to base MANNVILLE Tract 1 TWP 56-RGE 1-W5M W17 PNG from surface to base MANNVILLE Tract 1 TWP 54-RGE 25-W4M NE20 PNG from surface to base BASEMENT Tract 1 TWP 54-RGE 16-W5M NW33 PNG from surface to base BLUESKY- BULLHEAD Tract 1 TWP 68-RGE 2-W5M S17,NE17 PNG from top GRAND RAPIDS to base BLUESKY-BULLHEAD Tract 1 TWP 65-RGE 26-W4M 17 10 Other 0417020122 1 2 2 2 5 0 7 5 5 5 1 1 20 7 3 20 other 0506010361 Other 0516050022 other 0510060146 other 0416050054 other 0591040348 other 018012A014 other 018012A014 other 018012A014 other 3932 other 3932 other 29953 other 29953 Paddle River 5411110203 Paddle River 5411110203 Paddle River 5411110210 Paddle River 5411110210 Paddle 5411110211 other HISER ET AL other HISER ET AL other HISER ET AL other 0481100014 Other 5405120248 Other 5405120248 other 5408090493 other 5408090493 Other 22178 Other 22178 Other 22178 Other 22178 Other 14445 Other 13533 NE5 PET from top CARDIUM to base CARDIUM Excluding WELLBORE PROD Tract 1 TWP 36-RGE 3-W5M NW5 PET from base CARDIUM to base BASEMENT Tract 1 TWP 36-RGE 3-W5M NW5 PET from surface to base CARDIUM Tract 1 TWP 36-RGE 3-W5M NE 5 PET from surface to base CARDIUM Excluding PET from top CARDIUM to base CARDIUM Tract 1 TWP 36-RGE 3-W5M SE29 PET from top BASAL QUARTZ to base BASAL QUARTZ PET from top OSTRACOD to base OSTRACOD Tract 1 TWP 62-RGE 25-W5M 35 PNG from surface to base PEACE RIVER Excluding WELLBORE Tract 1 TWP 62-RGE 25-W5M 35 WELLBORE PROD Tract 1 TWP 63-RGE 20-W5M 17,19,20 PNG from base BLUESKY-BULLHEAD to base TRIASSIC Tract 1 TWP 63-RGE 20-W5M 8 PNG from base BLUESKY-BULLHEAD to top DOIG Tract 1 TWP 68-RGE 2-W5M 30 PNG from surface to base MANNVILLE Tract 1 TWP 68-RGE 2-W5M NW19,SE19 PNG from surface to base MANNVILLE Excluding WELLBORE Tract 1 TWP 68-RGE 2-W5M NW17 PNG from surface to base MANNVILLE Excluding PNG from top GRAND RAPIDS to base BLUESKY- BULLHEAD Tract 1 TWP 68-RGE 2-W5M NW17 PNG from top GRAND RAPIDS to base BLUESKY-BULLHEAD Tract 1 TWP 68-RGE 3-W5M SE36 PNG from surface to top GILWOOD Excluding PNG from surface to base MANNVILLE Tract 1 TWP 68-RGE 2-W5M NE19 PNG from surface to 2019 ANNUAL REPORT 20 10 20 20 10 20 6 6 6 20 14 20 14 20 20 20 20 18 PNG from surface to base BASEMENT Tract 1 TWP 65-RGE 26-W4M 18 PNG from surface to base BASEMENT Tract 1 TWP 63-RGE 20-W5M 5 PNG from base BLUESKY-BULLHEAD to top DOIG Tract 1 TWP 67-RGE 26-W4M SE28 PNG from surface to base BASEMENT Tract 1 TWP 89-RGE 5-W6M 1 PNG from top BLUESKY-BULLHEAD to base BLUESKY- BULLHEAD Tract 1 TWP 26-RGE 14-W4M 1 PNG from surface to base BASEMENT Tract 1 TWP 73-RGE 10-W6M E24 PNG from surface to base CHARLIE LAKE Tract 1 TWP 56-RGE 15-W5M NW22 PNG from surface to top CARDIUM Tract 1 TWP 56-RGE 15-W5M NW22 PNG from top CARDIUM to base CARDIUM Excluding WELLBORE PROD Tract 1 TWP 56-RGE 15-W5M NW22 WELLBORE PROD Tract 1 TWP 41-RGE 21-W4M S24,NE24 PNG from top VIKING to base MANNVILLE Excluding WELLBORE Tract 1 TWP 41-RGE 21-W4M S24,NE 24 WELLBORE ONLY Tract 1 TWP 41-RGE 21-W4M NW24 PNG from top VIKING to base MANNVILLE Excluding WELLBORE Tract 1 TWP 41-RGE 21-W4M NW24 WELLBORE Tract 1 TWP 55-RGE 6-W5M 27,28 PNG from surface to base MANNVILLE Tract 1 TWP 55-RGE 6-W5M 34 PNG from base BELLY RIVER to base MANNVILLE Tract 1 TWP 56-RGE 6-W5M 4 PNG from surface to base BANFF Tract 1 TWP 56-RGE 6-W5M 3,9,10 PNG from base BELLY RIVER to base BANFF Tract 1 Page | 68 Area Lessor/Crown # Rights Held Active WI % Area Lessor/Crown # Rights Held Active WI % Area Lessor/Crown # Rights Held Active WI % WHITEBARK ENERGY LTD Shareholder Information River Paddle River 0401080193 Paddle River 0589060122 Paddle River 0589060123 Paddle River 058407A286 Paddle River 35970 Paddle River 0579080256 Paddle River 0587090394 Paddle River 5495090111 Paddle River 26248 Paddle River 0589110368 Paddle River 0581020085 Paddle River 018203A006 Paddle River CENOVUS ENERGY INC. Paddle River 0580060165 Paddle River 0182030006 Paddle River 0577030155 Paddle River 0182030004 TWP 56-RGE 6-W5M 5,6 PNG from surface to base BANFF Tract 1 TWP 54-RGE 4-W5M 17 PNG from surface to base MANNVILLE Excluding PNG from top NOTIKEWIN to base NOTIKEWIN Tract 1 TWP 58-RGE 6-W5M E21 PNG from surface to base NORDEGG Tract 1 TWP 58-RGE 6-W5M 22 PNG from surface to base BANFF Excluding CBM Tract 1 TWP 59-RGE 6-W5M N4,SW4 PNG from surface to base NORDEGG Tract 1 TWP 58-RGE 6-W5M 18 PNG from surface to base NORDEGG Tract 1 TWP 58-RGE 6-W5M 20 PNG from surface to base NORDEGG Excluding CBM Tract 1 TWP 58-RGE 6-W5M 15 PNG from surface to base NORDEGG Excluding CBM Tract 1 TWP 56-RGE 7-W5M 31 PNG from surface to base NORDEGG Tract 1 TWP 58-RGE 6-W5M 17 PNG from surface to base NORDEGG Tract 1 TWP 58-RGE 6-W5M W21 PNG from surface to base NORDEGG Tract 1 TWP 58-RGE 6-W5M N13,SW13 PNG from surface to base NORDEGG Tract 1 TWP 58-RGE 6-W5M SW10 PNG from surface to base BANFF Tract 1 TWP 59-RGE 6-W5M SE4 PNG from surface to base NORDEGG Tract 1 TWP 58-RGE 6-W5M N10,SE10 PNG from surface to base BANFF Tract 1 TWP 58-RGE 6-W5M 3 PNG from surface to base BANFF Tract 1 TWP 57-RGE 6-W5M S15 PNG from surface to base NORDEGG Tract 1 TWP 57-RGE 6-W5M N15 PNG from surface to 4 20 20 15 15 20 20 20 20 20 20 20 15 20 11 2 2 2019 ANNUAL REPORT Paddle River 0182030004 Paddle River 0182030004 Paddle River 0182030004 Paddle River 0182030004 Paddle River 5417090087 Paddle River 5417090088 Paddle River 5417090211 Paddle River 0507070449 Paddle River 0511030353 Paddle River 5418070086 Paddle River 0581090214 Paddle River 5409100375 Paddle River Paddle River 5409100375 0509010131 Paddle River 0509010131 Paddle 0511030676 base NORDEGG Tract 1 TWP 57-RGE 6-W5M 22 PNG from top NORDEGG to base NORDEGG Tract 1 TWP 57-RGE 6-W5M SE21 PNG from surface to base BELLY RIVER Excluding NG from top BELLY RIVER to base BELLY RIVER Tract 1 TWP 57-RGE 6-W5M N21,SW21 PNG from surface to base BELLY RIVER Excluding NG from top BELLY RIVER to base BELLY RIVER Tract 1 TWP 57-RGE 6-W5M 22 PNG from surface to top NORDEGG Tract 1 TWP 55-RGE 6-W5M 29,30,31,32 PNG from surface to base MANNVILLE PNG from base NORDEGG to base BASEMENT Tract 1 TWP 56-RGE 6-W5M 7 TWP 56-RGE 7-W5M 2,11,12 PNG from surface to base BASEMENT Tract 1 TWP 54-RGE 7-W5M 17,20 PNG from surface to base BASEMENT Tract 1 TWP 56-RGE 7-W5M 4 PNG from surface to base MANNVILLE Tract 1 TWP 55-RGE 7-W5M 33 PNG from top MANNVILLE to base MANNVILLE Tract 1 TWP 55-RGE 7-W5M 35,36 PNG from base BANFF to basement Tract 1 TWP 55-RGE 7-W5M 21 PNG from surface to top NORDEGG Tract 1 TWP 55-RGE 7-W5M 31 PNG from top MANNVILLE to base MANNVILLE Excluding WELLBORE PROD Tract 1 TWP 55-RGE 7-W5M 31 WELLBORE PROD Tract 1 TWP 55-RGE 7-W5M NE30 PNG from top MANNVILLE to base MANNVILLE Excluding WELLBORE PROD Tract 1 TWP 55-RGE 7-W5M NE30 WELLBORE PROD Tract 1 1 1 1 1 River Paddle River CENOVUS Paddle River CENOVUS Paddle River 0511050342 Paddle River 0500080482 20 Paddle River 0581090185 Paddle River Paddle River 0581090185 0581100188 Paddle River 0581100188 Paddle River 0581100188 Paddle River 5497100192 Paddle River 5497100192 Paddle River 0597040236 Paddle River 0597040236 Paddle River 0597040236 20 20 20 20 20 5 20 20 20 20 20 20 20 20 4 5 11 12 12 12 20 4 20 20 20 TWP 55-RGE 7-W5M N28 PNG from top MANNVILLE to base MANNVILLE Tract 1 TWP 56-RGE 7-W5M SW5 PNG from top SURFACE to base OSTRACOD Tract 1 TWP 56-RGE 7-W5M SE5 PNG from top SURFACE to base OSTRACOD Tract 1 TWP 56-RGE 7-W5M N5 PNG from top MANNVILLE to base MANNVILLE Tract 1 TWP 55-RGE 6-W5M 9 PNG from surface to base BELLY RIVER Tract 1 TWP 55-RGE 6-W5M 18,19 PNG from base BELLY RIVER to base NORDEGG CBM from surface to base NORDEGG Tract 1 TWP 55-RGE 6-W5M 19 WELLBORE ONLY Tract 1 TWP 55-RGE 6-W5M 20 PNG from surface to base NORDEGG Tract 1 TWP 55-RGE 6-W5M 17 PNG from base BELLY RIVER to base NORDEGG Tract 1 TWP 55-RGE 6-W5M 17 CBM from surface to base BELLY RIVER Tract 1 TWP 55-RGE 7-W5M NW29 PNG from top SURFACE to base MANNVILLE Excluding CBM Tract 1 TWP 55-RGE 7-W5M NW29 CBM from top SURFACE to base MANNVILLE Tract 1 TWP 55-RGE 7-W5M 32 PNG from top SURFACE to base MANNVILLE Excluding PNG from top GLAUCONITIC to base GLAUCONITIC Excluding CBM from surface to base MANNVILLE Excluding WELLBORE PROD Tract 1 TWP 55-RGE 7-W5M 32 PNG from top GLAUCONITIC to base GLAUCONITIC Excluding CBM Tract 1 TWP 55-RGE 7-W5M 32 WELLBORE PROD Page | 69 Area Lessor/Crown # Rights Held Paddle River 0597040236 Paddle River 0597040236 Paddle River Paddle River 0597040236 5411110204 Paddle River 5414020096 Thornbury 0595010782 Thornbury 0593030391 Thornbury 0593030387 Thornbury 0593040701 Thornbury 0593070520 Thornbury 0593050473 Thornbury 0595070450 Thornbury 0507010388 Thornbury 0595110488 Thornbury 5495100161 Thornbury 5495100160 Thornbury 5495080116 Thornbury 0591050535 Tract 1 TWP 55-RGE 7-W5M 32 CBM from top SURFACE to base MANNVILLE Excluding CBM from top GLAUCONITIC to base GLAUCONITIC Tract 1 TWP 55-RGE 7-W5M 32 CBM from top GLAUCONITIC to base GLAUCONITIC Tract 1 TWP 55-RGE 7-W5M 32 WELLBORE PROD Tract 1 TWP 55-RGE 6-W5M 21,22,23,27,28,29,30, 31,32,33,34,36 PNG from base MANNVILLE to base NORDEGG Tract 1 TWP 56-RGE 7-W5M 1 PNG from surface to base NORDEGG Tract 1 TWP 79-RGE 15-W4M 9 PNG from top MCMURRAY to base MCMURRAY Tract 1 TWP 78-RGE 15-W4M 35 PNG from surface to base MANNVILLE Tract 1 TWP 79-RGE 15-W4M 4 PNG from surface to base MANNVILLE Tract 1 TWP 78-RGE 15-W4M 26,28,33,34 PNG from surface to base MANNVILLE Tract 1 TWP 78-RGE 15-W4M 21 PNG from surface to base MANNVILLE Tract 1 TWP 78-RGE 15-W4M 22,23 PNG from surface to base MANNVILLE Tract 1 TWP 79-RGE 15-W4M 20 PNG from surface to base MANNVILLE Tract 1 TWP 79-RGE 15-W4M 17 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 15-W4M 23,35 PNG from surface to base MANNVILLE Tract 1 TWP 81-RGE 15-W4M 13 PNG from surface to base MANNVILLE Tract 1 TWP 81-RGE 14-W4M 4,5,6,7,8,9,16,18 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 16-W4M 35 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 15-W4M Active WI % 4 9 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 2019 ANNUAL REPORT Area Lessor/Crown # Rights Held Active WI % Area Lessor/Crown # Rights Held Active WI % WHITEBARK ENERGY LTD Shareholder Information Thornbury 0595110408 Thornbury 5495090143 Thornbury 5495090143 Thornbury 0595090673 Thornbury 5495090144 Thornbury 5495090144 Thornbury 0595110411 Thornbury 0591050533 Thornbury 5495110058 Thornbury 0179040029 Thornbury 0179040029 Thornbury 0179040029 Thornbury 0179040029 Thornbury 0590100432 Thornbury 0586030343 Thornbury 0586030343 Thornbury 0587070166 Thornbury 0586030344 36 PNG from surface to base MANNVILLE Tract 1 TWP 79-RGE 14-W4M 6,7 PNG from surface to base MANNVILLE Tract 1 TWP 79-RGE 15-W4M 1 TWP 79-RGE 14-W4M 3,4 PNG from surface to base MANNVILLE Tract 1 TWP 79-RGE 14-W4M 5 PNG from surface to base MANNVILLE Tract 1 TWP 79-RGE 14-W4M 15,19,28,29,30 TWP 79-RGE 15-W4M 14,23,24,26 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 15-W4M 19 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 15-W4M 11 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 14-W4M 7 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 15-W4M 24 PNG from surface to base MANNVILLE Tract 1 TWP 81-RGE 15-W4M 24 PNG from surface to base MANNVILLE Tract 1 TWP 82-RGE 14-W4M NW17,S17,21,22,28 PNG from surface to base MANNVILLE Tract 1 TWP 82-RGE 14-W4M 27 PNG from surface to base MANNVILLE Tract 1 TWP 82-RGE 14-W4M 15,16 PNG from surface to base MANNVILLE Tract 1 TWP 82-RGE 14-W4M NE17 PNG from surface to base MANNVILLE Tract 1 TWP 82-RGE 13-W4M 3 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 14-W4M 10 PNG from surface to base MANNVILLE Excluding WELLBORE Tract 1 TWP 80-RGE 14-W4M 10 WELLBORE PROD Tract 1 TWP 79-RGE 14-W4M 27 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 14-W4M 20 Thornbury 0586030344 Thornbury 0595010787 20 20 20 20 20 20 20 20 10 10 10 10 10 17 20 20 17 Thornbury 0595010787 Thornbury 0585050215 Thornbury 0593060378 Thornbury 0593060380 Thornbury 0593060381 Thornbury 0594110276 Thornbury 0593060383 Thornbury 0593090784 Thornbury 0593090784 Thornbury 0593090784 Thornbury 0590060342 Thornbury 0590060343 Thornbury 0589050395 Thornbury 058905A395 Thornbury 058905A395 Thornbury 0585050217 16 20 20 4 4 4 4 4 4 4 0 4 4 4 4 4 4 4 12 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 14-W4M 12 WELLBORE PROD Tract 1 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 Tract 1 TWP 80-RGE 16-W4M 25 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 13-W4M 1 PNG from surface to base MANNVILLE Tract 1 TWP 79-RGE 12-W4M 17 PNG from surface to base MANNVILLE Tract 1 TWP 79-RGE 12-W4M 27 PNG from surface to base MANNVILLE Tract 1 TWP 79-RGE 12-W4M 29 PNG from surface to base MANNVILLE Tract 1 TWP 79-RGE 13-W4M 14 PNG from surface to base MANNVILLE Tract 1 TWP 79-RGE 13-W4M 26 PNG from surface to base MANNVILLE Tract 1 TWP 79-RGE 13-W4M 27 WELLBORE PROD Tract 1 TWP 79-RGE 13-W4M 27 WELLBORE PROD Tract 1 TWP 79-RGE 13-W4M 27 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 12-W4M 4 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 12-W4M 5 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 13-W4M 3 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 13-W4M 4,10 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 13-W4M 9 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 13-W4M 12 PNG from surface to base MANNVILLE Page | 70 Area Lessor/Crown # Rights Held Area Lessor/Crown # Rights Held WHITEBARK ENERGY LTD Shareholder Information Active WI % 7 0 7 20 5 20 20 20 20 20 Area Lessor/Crown # Rights Held Thornbury 0590010419 Thornbury 0589120202 Thornbury 0589120202 Thornbury 0586030342 Thornbury 0586030342 Thornbury 5495100048 Thornbury 5495100055 Thornbury 5495100049 Thornbury 5495100050 Thornbury 5495100054 Thornbury 5494100161 Thornbury 5494100161 Thornbury 5494100161 Thornbury 5495100052 Thornbury 0505060901 Thornbury 0505080596 Thornbury 0505080599 Thornbury 0506070714 Tract 1 TWP 80-RGE 14-W4M 30 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 14-W4M 19 WELLBORE ONLY Tract 1 TWP 80-RGE 14-W4M 19 PNG from surface to base MANNVILLE Excluding WELLBORE Tract 1 TWP 80-RGE 14-W4M 2 WELLBORE PROD Tract 1 TWP 80-RGE 14-W4M 2 PNG from surface to base MANNVILLE Excluding WELLBORE Tract 1 TWP 77-RGE 14-W4M 9,17 PNG from surface to base MANNVILLE Excluding CBM Tract 1 TWP 78-RGE 15-W4M 13,14 PNG from surface to base MANNVILLE Excluding CBM Tract 1 TWP 77-RGE 14-W4M 18 PNG from surface to base MANNVILLE Excluding CBM Tract 1 TWP 77-RGE 14-W4M 35 PNG from surface to base MANNVILLE Excluding CBM Tract 1 TWP 78-RGE 14-W4M 26 PNG from surface to base MCMURRAY Excluding CBM Tract 1 TWP 77-RGE 14-W4M 19 PNG from surface to base MCMURRAY Excluding CBM Tract 1 TWP 77-RGE 14-W4M 30 PNG from surface to base MCMURRAY Excluding CBM Tract 1 TWP 77-RGE 15-W4M 25 PNG from surface to base MANNVILLE Tract 1 TWP 78-RGE 14-W4M 16 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 14-W4M 23 PNG from surface to base MANNVILLE Tract 1 TWP 78-RGE 14-W4M 33 PNG from surface to base MANNVILLE Tract 1 TWP 78-RGE 15-W4M 36 PNG from surface to base MANNVILLE Tract 1 TWP 77-RGE 14-W4M 2019 ANNUAL REPORT Thornbury 0500110212 Thornbury 0596060259 Thornbury 0595060345 Thornbury 0596010191 Thornbury 0585050411 Thornbury 39567 Thornbury 39586 Thornbury 39586 Thornbury 0178050155 Thornbury 0517110127 20 Thorsby 0411110070 20 20 20 20 20 20 20 Thorsby 0411110070 Thorsby 0494100828 Whitecourt 0588100423 Whitecourt 0507010723 Whitecourt 0501060447 Active WI % 16 Whitecourt 0501080238 16 Whitecourt 0597040244 16 Whitecourt 0577020072 Whitecourt 0577020072 Whitecourt 0577020072 Whitecourt 0577020073 Whitecourt 0577020073 Whitecourt 2985 Whitecourt 2985 Whitecourt 38510 Whitecourt 38510 Whitecourt 38510 Whitecourt 38510 16 1 1 2 2 20 20 20 80 20 16 1 5 Whitecourt 38510 20 PNG from surface to base MANNVILLE Tract 1 TWP 79-RGE 13-W4M 25 PNG from surface to base MANNVILLE Tract 1 TWP 79-RGE 12-W4M 2 PNG from surface to base MCMURRAY Tract 1 TWP 79-RGE 12-W4M 3 PNG from surface to base MCMURRAY Tract 1 TWP 79-RGE 12-W4M 30 PNG from surface to base MANNVILLE Tract 1 TWP 76-RGE 10-W4M 36 TWP 76-RGE 9-W4M S20 PNG from surface to base MANNVILLE Tract 1 TWP 77-RGE 9-W4M 6 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 18-W4M 24 PNG from surface to base GROSMONT Tract 1 TWP 80-RGE 18-W4M 13,14,23 PNG from surface to base GROSMONT Tract 1 TWP 78-RGE 13-W4M 25 PNG from surface to base MANNVILLE Tract 1 TWP 80-RGE 15-W4M 15 PNG from surface to base BASEMENT Tract 1 TWP 49-RGE 1-W5M 18 PNG from top MANNVILLE to base MANNVILLE Excluding PNG from top SPARKY to base SPARKY Excluding PNG from top GLAUCONITIC to base GLAUCONITIC Tract 1 TWP 49-RGE 1-W5M 18 PNG from top GLAUCONITIC to base GLAUCONITIC Tract 1 TWP 50-RGE 3-W5M N17 TWP 50-RGE 3-W5M 17(LSD 5-8) PNG from surface to base BELLY RIVER Tract 1 TWP 58-RGE 21-W5M NW23 PNG from surface to base CARDIUM Tract 1 TWP 60-RGE 11-W5M S13,NE13 PNG from base BELLY RIVER to base MANNVILLE Tract 1 TWP 60-RGE 11-W5M S13,NE13 Active WI % 10 2 2 6 2 4 4 5 5 1 10 2 4 7 PNG from surface to base BELLY RIVER Tract 1 TWP 60-RGE 10-W5M 7 PNG from base NORDEGG to base PEKISKO Tract 1 TWP 61-RGE 10-W5M 21 PNG from surface to base PEKISKO Tract 1 TWP 60-RGE 11-W5M S15 PNG from surface to base PEKISKO Excluding CBM from surface to base BASEMENT Tract 1 TWP 60-RGE 11-W5M S15 CBM from surface to base PEKISKO Tract 1 TWP 60-RGE 11-W5M S15 WELLBORE PROD Tract 1 TWP 60-RGE 11-W5M SE16 PNG from surface to base PEKISKO Excluding NG from top NORDEGG to base NORDEGG Excluding NG from top PEKISKO to base PEKISKO Excluding CBM Tract 1 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 Tract 1 TWP 60-RGE 11-W5M W28 PNG from top PEKISKO to base PEKISKO Tract 1 TWP 60-RGE 11-W5M W28 PNG from top NORDEGG to base NORDEGG Tract 1 TWP 60-RGE 11-W5M NW13 PNG from base BELLY RIVER to base MANNVILLE Tract 1 TWP 60-RGE 11-W5M 23,27,SE33,S34 PNG from surface to base PEKISKO Tract 1 TWP 60-RGE 11-W5M N15 WELLBORE PROD Tract 1 TWP 60-RGE 11-W5M NE16 PNG from surface to base PEKISKO Excluding NG from top PEKISKO to base PEKISKO Excluding CBM Excluding NG from top NORDEGG to base NORDEGG Tract 1 TWP 60-RGE 11-W5M E21 Page | 71 Area Lessor/Crown # Rights Held Active WI % Area Lessor/Crown # Rights Held Active WI % WHITEBARK ENERGY LTD Shareholder Information Active WI % 3 10 Whitecourt 38510 Whitecourt 38510 Whitecourt 38509 10 Whitecourt 38509 5 5 Whitecourt 38509 10 Whitecourt 38509 Whitecourt 38509 Whitecourt 38509 10 10 4 Whitecourt 38509 Whitecourt 38509 Whitecourt 38509 Whitecourt 38509 Whitecourt 38509 7 3 6 5 5 Area Lessor/Crown # Rights Held Whitecourt 38510 Whitecourt 38510 Whitecourt 38510 Whitecourt 38510 Whitecourt 38510 Whitecourt 38510 Whitecourt 38510 Whitecourt 38510 Whitecourt 38510 Whitecourt 38510 Whitecourt 38510 Whitecourt 38510 Whitecourt 38510 Whitecourt 38510 PNG from surface to top BASAL QUARTZ Excluding CBM Tract 1 TWP 60-RGE 11-W5M E21 PNG from top BASAL QUARTZ to base PEKISKO Excluding CBM Tract 1 TWP 60-RGE 11-W5M 22 PNG from surface to base PEKISKO Tract 2 TWP 60-RGE 11-W5M S35 PNG from surface to base NORDEGG Tract 1 TWP 60-RGE 11-W5M E28 PNG from surface to top PEKISKO Excluding PNG from top NORDEGG to base NORDEGG Tract 1 TWP 60-RGE 11-W5M E28 PNG from top PEKISKO to base PEKISKO Tract 1 TWP 60-RGE 11-W5M E28 PNG from top NORDEGG to base NORDEGG Tract 1 TWP 60-RGE 11-W5M W26 PNG from surface to base PEKISKO Excluding PNG from top BELLY RIVER to base BELLY RIVER Tract 1 TWP 60-RGE 11-W5M E26 PNG from surface to base PEKISKO Excluding PNG from top BELLY RIVER to base BELLY RIVER Tract 1 TWP 60-RGE 11-W5M N14 PNG from surface to base PEKISKO Tract 1 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 Tract 1 TWP 60-RGE 11-W5M E21 CBM from surface to top BASAL QUARTZ Tract 1 TWP 60-RGE 11-W5M E21 CBM from top BASAL QUARTZ to base PEKISKO Tract 1 TWP 60-RGE 11-W5M N15 CBM from surface to base PEKISKO Tract 1 TWP 60-RGE 11-W5M NW13 PNG from surface to base BELLY RIVER Tract 1 2019 ANNUAL REPORT TWP 60-RGE 11-W5M NW13 PNG from base MANNVILLE to base PEKISKO Tract 1 TWP 60-RGE 11-W5M N15 PNG from surface to base PEKISKO Excluding CBM Excluding WELLBORE Tract 1 TWP 60-RGE 11-W5M N15 WELLBORE PROD Tract 1 TWP 60-RGE 11-W5M 18 PNG from surface to base NORDEGG Tract 1 TWP 60-RGE 11-W5M W20 PNG from surface to base PEKISKO Excluding CBM Excluding NG from top NORDEGG to base NORDEGG Excluding NG from top PEKISKO to base PEKISKO Tract 1 TWP 60-RGE 11-W5M N7 PNG from surface to base NORDEGG Excluding NG from top NORDEGG to base NORDEGG Tract 1 TWP 60-RGE 11-W5M W17 PNG from top NORDEGG to base NORDEGG Tract 1 TWP 60-RGE 11-W5M N7 NG from top NORDEGG to base NORDEGG Tract 1 TWP 60-RGE 11-W5M NW8 PNG from surface to base NORDEGG Excluding CBM Excluding NG from top NORDEGG to base NORDEGG Tract 1 TWP 60-RGE 11-W5M W20 CBM from surface to base PEKISKO Excluding CBM from top PEKISKO to base PEKISKO Tract 1 TWP 60-RGE 11-W5M SW29 PNG from surface to base NORDEGG Tract 1 TWP 60-RGE 11-W5M W20 NG from top PEKISKO to base PEKISKO Excluding CBM Excluding WELLBORE Tract 1 TWP 60-RGE 11-W5M W20 WELLBORE PROD Tract 1 TWP 60-RGE 11-W5M SW29 CBM from base NORDEGG to base PEKISKO PNG from base NORDEGG to base Whitecourt 38509 Whitecourt 38509 Whitecourt 38509 Whitecourt 38509 Whitecourt 120107 Whitecourt 120107 Whitecourt 120107 Whitecourt 120107 Whitecourt 120107 Whitecourt 16143 Whitecourt 16143 Whitecourt 38508 2 2 10 2 10 4 9 4 6 4 2 4 10 Whitecourt 38508 Whitecourt 38508 6 4 6 4 2 2 4 4 6 10 6 6 10 10 PEKISKO Tract 1 TWP 60-RGE 11-W5M W17 PNG from surface to top NORDEGG Excluding CBM Tract 1 TWP 60-RGE 11-W5M NW8 NG from top NORDEGG to base NORDEGG CBM from surface to base NORDEGG Tract 1 TWP 60-RGE 11-W5M W17 CBM from surface to top NORDEGG Tract 1 TWP 60-RGE 11-W5M W20 CBM from top PEKISKO to base PEKISKO NG from top NORDEGG to base NORDEGG Excluding WELLBORE Tract 1 TWP 60-RGE 11-W5M E20 NG from top PEKISKO to base PEKISKO Excluding CBM Excluding WELLBORE Tract 1 TWP 60-RGE 11-W5M E20 PNG from surface to base PEKISKO Excluding NG from top NORDEGG to base NORDEGG Excluding NG from top PEKISKO to base PEKISKO Excluding CBM Tract 1 TWP 60-RGE 11-W5M E20 NG from top NORDEGG to base NORDEGG CBM from top PEKISKO to base PEKISKO Excluding WELLBORE Tract 1 TWP 60-RGE 11-W5M E20 WELLBORE PROD Tract 1 TWP 60-RGE 11-W5M E20 CBM from surface to base PEKISKO Excluding CBM from top PEKISKO to base PEKISKO Tract 1 TWP 60-RGE 11-W5M N12,SE12,S14 PNG from surface to base PEKISKO Tract 1 TWP 60-RGE 11-W5M N11 PNG from surface to base PEKISKO Tract 1 TWP 60-RGE 11-W5M S11 PNG from surface to base PEKISKO Tract 1 TWP 60-RGE 11-W5M SW12 PNG from surface to base PEKISKO Tract 1 TWP 60-RGE 11-W5M NW1 Page | 72 Area Lessor/Crown # Rights Held Active WI % Area Lessor/Crown # Rights Held Active WI % Area Lessor/Crown # Rights Held Active WI % WHITEBARK ENERGY LTD Shareholder Information Whitecourt 120106 Whitecourt 120106 Whitecourt 120106 Whitecourt 120108 Whitecourt 120108 Whitecourt 120108 Whitecourt 120108 Whitecourt 120105 Whitecourt 120105 Whitecourt 934A Whitecourt 934A Whitecourt 934A Whitecourt 934A Whitecourt 934A 4 6 6 3 7 7 3 4 4 8 8 8 8 8 PNG from surface to base PEKISKO Tract 1 TWP 60-RGE 11-W5M E17 PNG from top NORDEGG to base NORDEGG Tract 1 TWP 60-RGE 11-W5M E17 PNG from surface to top NORDEGG Excluding CBM Tract 1 TWP 60-RGE 11-W5M E17 CBM from surface to top NORDEGG Tract 1 TWP 60-RGE 11-W5M SW21 PNG from top BASAL QUARTZ to base PEKISKO Excluding CBM Excluding WELLBORE Tract 1 TWP 60-RGE 11-W5M SW21 PNG from surface to top BASAL QUARTZ Excluding CBM Tract 1 TWP 60-RGE 11-W5M SW21 CBM from surface to top BASAL QUARTZ Tract 1 TWP 60-RGE 11-W5M SW21 CBM from top BASAL QUARTZ to base PEKISKO Tract 1 TWP 60-RGE 11-W5M SW8 PNG from surface to base NORDEGG Excluding NG from top NORDEGG to base NORDEGG Excluding CBM Tract 1 TWP 60-RGE 11-W5M SW8 NG from top NORDEGG to base NORDEGG CBM from surface to base NORDEGG Tract 1 TWP 59-RGE 11-W5M SW30 NG from top BELLY RIVER to base BELLY RIVER NG from top LOWER MANNVILLE to base LOWER MANNVILLE Tract 1 TWP 59-RGE 12-W5M S25 NG from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 12-W5M N24 NG from top BELLY RIVER to base BELLY RIVER Tract 1 TWP 59-RGE 12-W5M N24 NG from top LOWER MANNVILLE to base LOWER MANNVILLE Tract 1 TWP 59-RGE 12-W5M N24 TWP 59-RGE 11-W5M SW30 NG from top 2019 ANNUAL REPORT Whitecourt 934A Whitecourt 1264 Whitecourt 1264 Whitecourt 38504 Whitecourt 38504 Whitecourt 38504 Whitecourt 38504 Whitecourt 38504 Whitecourt 38477 Whitecourt 38477 Whitecourt 38477 NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 12-W5M S25 NG from top BELLY RIVER to base BELLY RIVER NG from top LOWER MANNVILLE to base LOWER MANNVILLE Tract 1 TWP 59-RGE 12-W5M N24 TWP 59-RGE 11-W5M SW30 NG from top PEKISKO to base PEKISKO Tract 1 TWP 59-RGE 12-W5M S25 NG from top PEKISKO to base PEKISKO Tract 1 TWP 59-RGE 12-W5M N25 NG from top BELLY RIVER to base BELLY RIVER NG from top LOWER MANNVILLE to base LOWER MANNVILLE Tract 1 TWP 59-RGE 12-W5M N25 PNG from surface to base PEKISKO Excluding NG from top PEKISKO to base PEKISKO Excluding NG from top BELLY RIVER to base BELLY RIVER Excluding NG from top LOWER MANNVILLE to base LOWER MANNVILLE Excluding NG from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 11-W5M NW30,W31 TWP 59-RGE 12-W5M 36 PNG from surface to base PEKISKO Tract 1 TWP 59-RGE 11-W5M NW30,W31 TWP 59-RGE 12-W5M 36 NG from top LOWER MANNVILLE to base LOWER MANNVILLE NG from top PEKISKO to base PEKISKO NG from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 12-W5M N25 NG from top PEKISKO to base PEKISKO NG from top LOWER MANNVILLE to base LOWER MANNVILLE NG from top NORDEGG to base NORDEGG Tract 1 TWP 60-RGE 12-W5M N12 PNG from surface to base VIKING Tract 1 TWP 60-RGE 12-W5M S13 PNG from surface to base LOWER MANNVILLE Tract 1 TWP 60-RGE 12-W5M Whitecourt 38477 Whitecourt 38477 Whitecourt 38477 Whitecourt 38477 Whitecourt 38477 Whitecourt 38477 Whitecourt 5496120022 9 8 9 9 10 10 Whitecourt 5496120022 10 Whitecourt 5496120022 Whitecourt 5496120022 Whitecourt 0578080151 8 Whitecourt 0596010415 Whitecourt 0596010415 Whitecourt 124127 Whitecourt 124127 3 5 5 8 10 5 10 10 10 4 0 2 0 10 1 2 5 5 SE14 PNG from surface to base LOWER MANNVILLE Tract 1 TWP 60-RGE 12-W5M N12 NG from top LOWER MANNVILLE to base LOWER MANNVILLE Tract 1 TWP 60-RGE 12-W5M NE11 PET from surface to base NORDEGG Tract 1 TWP 60-RGE 12-W5M N12 PNG from base VIKING to base LOWER MANNVILLE Excluding NG from top LOWER MANNVILLE to base LOWER MANNVILLE Tract 1 TWP 60-RGE 12-W5M SE14 PNG from base LOWER MANNVILLE to base NORDEGG Excluding NG from top NORDEGG to base NORDEGG Tract 1 TWP 60-RGE 12-W5M S13 PNG from base LOWER MANNVILLE to base NORDEGG Tract 1 TWP 60-RGE 12-W5M N12 PNG from base LOWER MANNVILLE to base PEKISKO Tract 1 TWP 61-RGE 10-W5M 16 PNG from surface to base PEKISKO Excluding WELLBORE PROD Tract 1 TWP 61-RGE 10-W5M 16 WELLBORE PROD Tract 1 TWP 61-RGE 10-W5M 7 WELLBORE PROD Tract 1 TWP 61-RGE 10-W5M 6 WELLBORE ONLY Tract 1 TWP 60-RGE 10-W5M SE7 PNG from surface to base NORDEGG Tract 1 TWP 60-RGE 11-W5M NE32 PNG from surface to base NORDEGG Tract 1 TWP 60-RGE 11-W5M NE32 PNG from base NORDEGG to base PEKISKO Tract 1 TWP 59-RGE 12-W5M 26 PNG from surface to base NORDEGG Excluding NG from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 12-W5M 26 NG from top NORDEGG to base Page | 73 Area Lessor/Crown # Rights Held Active WI % Area Lessor/Crown # Rights Held Active WI % WHITEBARK ENERGY LTD Shareholder Information Active WI % 10 9 8 8 8 8 4 8 4 4 4 Area Lessor/Crown # Rights Held Whitecourt 0597070666 Whitecourt 127754 Whitecourt 127754 Whitecourt 127754 Whitecourt 127754 Whitecourt 127754 Whitecourt 127754 Whitecourt 127754 Whitecourt 0594120281 Whitecourt 0594120281 Whitecourt 0594120282 Whitecourt 931 NORDEGG Tract 1 TWP 58-RGE 11-W5M 32 PNG from surface to base PEKISKO Tract 1 TWP 60-RGE 11-W5M S7 NG from top NORDEGG to base NORDEGG Tract 1 TWP 60-RGE 11-W5M S7 PNG from surface to base PEKISKO Excluding NG from top PEKISKO to base PEKISKO Excluding NG from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 11-W5M E31 PNG from surface to base PEKISKO Excluding NG from top PEKISKO to base PEKISKO Excluding NG from top NORDEGG to base NORDEGG Tract 1 TWP 60-RGE 11-W5M 6 PNG from base VIKING to base PEKISKO Excluding NG from top NORDEGG to base NORDEGG Excluding NG from top PEKISKO to base PEKISKO Tract 1 TWP 60-RGE 11-W5M 6 TWP 59-RGE 11-W5M E31 NG from top PEKISKO to base PEKISKO NG from top NORDEGG to base NORDEGG Tract 1 TWP 60-RGE 11-W5M 6 PNG from surface to base VIKING Tract 1 TWP 60-RGE 11-W5M S7 NG from top PEKISKO to base PEKISKO Tract 1 TWP 59-RGE 10-W5M 3 PNG from surface to base PEKISKO Excluding WELLBORE Tract 1 TWP 59-RGE 10-W5M 3 WELLBORE ONLY Tract 1 TWP 59-RGE 10-W5M 10 PNG from top JURASSIC to base JURASSIC CBM from surface to base PEKISKO WELLBORE ONLY Tract 1 TWP 60-RGE 12-W5M SE12 TWP 59-RGE 11-W5M 29,SE32 NG from top NORDEGG to base NORDEGG NG from top LOWER 2019 ANNUAL REPORT Whitecourt 931 Whitecourt 931 Whitecourt 931 Whitecourt 931 Whitecourt 931 Whitecourt 127739 Whitecourt 127739 Whitecourt 38768 Whitecourt 38768 8 Whitecourt 38768 Whitecourt 38768 MANNVILLE to base LOWER MANNVILLE Tract 1 TWP 59-RGE 11-W5M W32 NG from top LOWER MANNVILLE to base LOWER MANNVILLE Tract 1 TWP 59-RGE 11-W5M 29,SE32 NG from top PEKISKO to base PEKISKO Tract 1 TWP 59-RGE 11-W5M W32 NG from top NORDEGG to base NORDEGG NG from top PEKISKO to base PEKISKO Tract 1 TWP 60-RGE 12-W5M 1,SW12 NG from top PEKISKO to base PEKISKO NG from top NORDEGG to base NORDEGG NG from top LOWER MANNVILLE to base LOWER MANNVILLE Tract 1 TWP 60-RGE 12-W5M SE12 NG from top PEKISKO to base PEKISKO Tract 1 TWP 60-RGE 12-W5M 2 TWP 59-RGE 12-W5M 35 NG from top NORDEGG to base NORDEGG NG from top LOWER MANNVILLE to base LOWER MANNVILLE Tract 1 TWP 59-RGE 12-W5M 35 TWP 60-RGE 12-W5M 2 PNG from surface to base NORDEGG Excluding NG from top NORDEGG to base NORDEGG Excluding NG from top LOWER MANNVILLE to base LOWER MANNVILLE Tract 2 TWP 60-RGE 12-W5M E3 PNG from surface to base NORDEGG Tract 1 TWP 59-RGE 12-W5M E11,S12,NW12,SW13 PNG from surface to base NORDEGG Excluding CBM from surface to base NORDEGG Excluding NG from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 12-W5M E11,S12,NW12,SW13, SE14 CBM from surface to base NORDEGG Tract 1 TWP 59-RGE 12-W5M E11,NW12,S12,SW13, SE14 NG from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 12-W5M 8 8 8 8 8 8 4 9 Whitecourt 38768 Whitecourt 38766 Whitecourt 38766 Whitecourt 38766 Whitecourt 38766 Whitecourt 38766 Whitecourt 38482 9 Whitecourt 38482 9 9 Whitecourt 38482 SE14 PNG from surface to base NORDEGG Excluding PNG from top UPPER MANNVILLE to base UPPER MANNVILLE Excluding NG from top NORDEGG to base NORDEGG Excluding CBM from surface to base NORDEGG Tract 1 TWP 59-RGE 12-W5M SE14 PNG from top UPPER MANNVILLE to base UPPER MANNVILLE Excluding CBM Tract 1 TWP 59-RGE 12-W5M 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 from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 12-W5M NE12,E13,NW13,NE1 4,SE23,S24 TWP 59-RGE 11-W5M 7,18,S19 CBM from surface to base NORDEGG Tract 1 TWP 59-RGE 12-W5M NE14 PNG from surface to base NORDEGG Excluding NG from top NORDEGG to base NORDEGG Excluding PNG from top UPPER MANNVILLE to base UPPER MANNVILLE Excluding CBM from surface to base NORDEGG Tract 1 TWP 59-RGE 12-W5M NE14 PNG from top UPPER MANNVILLE to base UPPER MANNVILLE Excluding CBM Tract 1 TWP 59-RGE 12-W5M NE12,E13,NW13,NE1 4,SE23,S24 TWP 59-RGE 11-W5M 7,18,S19 NG from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 10-W5M W9 NG from top JURASSIC to base JURASSIC Tract 1 TWP 59-RGE 10-W5M W9 PET from top PEKISKO to base PEKISKO PNG from base MANNVILLE to top PEKISKO Excluding CBM from top JURASSIC to base JURASSIC Excluding NG from top JURASSIC to base JURASSIC Tract 1 Page | 74 10 8 8 8 10 8 4 1 10 Area Lessor/Crown # Rights Held Active WI % Area Lessor/Crown # Rights Held Active WI % Area Lessor/Crown # Rights Held Active WI % WHITEBARK ENERGY LTD Shareholder Information Whitecourt 38482 Whitecourt 38482 Whitecourt 38482 Whitecourt 38482 Whitecourt 38482 Whitecourt 38482 Whitecourt 38767 Whitecourt 38767 Whitecourt 38001 Whitecourt 38001 Whitecourt 38511 Whitecourt 38511 Whitecourt 1184 Whitecourt 1184 Whitecourt 1184 Whitecourt 1184 Whitecourt 0589050108 Whitecourt 0589050108 Whitecourt 0589050108 Whitecourt 0589050108 Whitecourt 0589050108 Whitecourt 38479 4 3 1 4 10 1 10 10 Whitecourt 38479 Whitecourt 38479 10 10 1 1 4 10 10 Whitecourt 38479 Whitecourt 0590040492 Whitecourt 18323 Whitecourt 11916 Whitecourt 38480 TWP 59-RGE 10-W5M W16,17,SW21 PNG from surface to base PEKISKO Tract 1 TWP 59-RGE 10-W5M S20 PNG from surface to base PEKISKO Excluding CBM Tract 1 TWP 59-RGE 10-W5M W9 WELLBORE ONLY Tract 1 TWP 59-RGE 10-W5M W9 NG from top PEKISKO to base PEKISKO Excluding CBM Excluding WELLBORE PROD Tract 1 TWP 59-RGE 10-W5M W9 CBM from surface to base PEKISKO Tract 1 TWP 59-RGE 10-W5M S20 CBM from surface to base PEKISKO Tract 1 TWP 59-RGE 10-W5M W9 PNG from surface to base MANNVILLE Excluding CBM Tract 2 Excluding WELLBORE ONLY Tract 1 TWP 59-RGE 11-W5M NE28,E33 NG from top PEKISKO to base PEKISKO Tract 1 TWP 59-RGE 11-W5M NE28,E33 PNG from surface to base PEKISKO Excluding NG from top PEKISKO to base PEKISKO Tract 1 TWP 58-RGE 10-W5M SW32 PNG from surface to base NORDEGG Tract 1 TWP 58-RGE 11-W5M NE25 PNG from top SURFACE to base NORDEGG Tract 1 TWP 60-RGE 11-W5M 19 PNG from base MANNVILLE to base PEKISKO Tract 1 TWP 60-RGE 11-W5M S19,NW19 PNG from surface to base MANNVILLE Tract 1 TWP 59-RGE 10-W5M SE9 NG from top JURASSIC to base JURASSIC Tract 1 TWP 60-RGE 11-W5M N34 NG from top JURASSIC to base JURASSIC Tract 1 TWP 60-RGE 11-W5M N35 NG from top JURASSIC to base 4 1 1 3 4 1 10 4 4 10 10 10 10 4 JURASSIC Tract 1 TWP 59-RGE 10-W5M SE9 CBM from top JURASSIC to base JURASSIC Tract 1 TWP 59-RGE 10-W5M SE9 NG from top PEKISKO to base PEKISKO Excluding CBM Tract 1 TWP 59-RGE 10-W5M SE9 PNG from base MANNVILLE to top PEKISKO PET from top PEKISKO to base PEKISKO Tract 1 TWP 59-RGE 10-W5M SE9 WELLBORE ONLY Tract 1 TWP 59-RGE 10-W5M SE9 CBM from surface to base PEKISKO Excluding CBM from top JURASSIC to base JURASSIC Tract 1 TWP 59-RGE 10-W5M SE9 PNG from surface to base MANNVILLE Excluding CBM Tract 1 TWP 59-RGE 10-W5M 7 CBM from surface to base PEKISKO NG from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 10-W5M 8 PNG from surface to base PEKISKO Tract 1 TWP 59-RGE 10-W5M 7 PNG from surface to base PEKISKO Excluding CBM from surface to base PEKISKO Excluding NG from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 10-W5M 8 CBM from surface to base PEKISKO WELLBORE ONLY Tract 1 TWP 59-RGE 10-W5M 1 PNG from surface to base NORDEGG Tract 1 TWP 58-RGE 11-W5M S25,NW25 PNG from top SURFACE to base NORDEGG Tract 1 TWP 58-RGE 11-W5M 35 PNG from surface to base PEKISKO Tract 1 TWP 59-RGE 10-W5M NW4 PNG from base MANNVILLE to base PEKISKO Excluding NG from top NORDEGG to base NORDEGG Whitecourt 38480 Whitecourt 38480 Whitecourt 38480 Whitecourt 38507 Whitecourt 38507 Whitecourt 38507 Whitecourt 1183 Whitecourt 1183 Whitecourt 1183 Whitecourt 1183 Whitecourt 1183 Whitecourt 1183 Whitecourt 1183 Whitecourt 1183 2019 ANNUAL REPORT 0 10 1 10 10 10 10 10 4 1 5 4 10 10 Excluding CBM from surface to base BASEMENT Tract 1 TWP 59-RGE 10-W5M NW4 NG from top NORDEGG to base NORDEGG Excluding CBM from surface to base NORDEGG Tract 1 TWP 59-RGE 10-W5M NW4 CBM from surface to base PEKISKO Tract 1 TWP 59-RGE 10-W5M NW4 PNG from surface to base MANNVILLE Tract 1 TWP 59-RGE 10-W5M N5 PNG from top SURFACE to base PEKISKO Tract 1 TWP 59-RGE 10-W5M N6 PNG from base EDMONTON SANDSTONE to base NORDEGG Tract 1 TWP 59-RGE 10-W5M N6 CBM from top SURFACE to base EDMONTON SANDSTONE Tract 1 TWP 59-RGE 10-W5M S5 NG from top JURASSIC to base JURASSIC Tract 1 TWP 58-RGE 10-W5M N32,SE32 NG from top JURASSIC to base JURASSIC Tract 1 TWP 59-RGE 10-W5M NE9 NG from top JURASSIC to base JURASSIC Tract 1 TWP 59-RGE 10-W5M NE9 NG from top PEKISKO to base PEKISKO Tract 1 TWP 60-RGE 11-W5M S13,NE13 NG from top PEKISKO to base PEKISKO NG from top JURASSIC to base JURASSIC Tract 1 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 from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 10-W5M S6 NG from top JURASSIC to base JURASSIC Tract 1 Page | 75 WHITEBARK ENERGY LTD Shareholder Information Area Lessor/Crown # Rights Held Active WI % Active WI % 8 8 8 5 10 10 Area Lessor/Crown # Rights Held Active WI % Area Lessor/Crown # Rights Held Whitecourt 1183 Whitecourt 1183 Whitecourt 1183 Whitecourt 0578090138 Whitecourt 0578090138 Whitecourt 36939 Whitecourt 36939 Whitecourt 111575 Whitecourt 38481 Whitecourt 27886 Whitecourt 0500060518 Whitecourt 932 Whitecourt 932 Whitecourt 1262 3 0 4 10 10 10 10 10 10 10 8 8 8 8 TWP 59-RGE 10-W5M S5 NG from top PEKISKO to base PEKISKO Tract 1 TWP 59-RGE 10-W5M NE9 WELLBORE ONLY Tract 1 TWP 59-RGE 10-W5M S4,NE4 NG from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 10-W5M NE9 CBM from top JURASSIC to base JURASSIC Tract 1 TWP 59-RGE 10-W5M SW15 PNG from surface to base NORDEGG Excluding PNG from top MANNVILLE to base MANNVILLE Tract 1 TWP 59-RGE 10-W5M E15 PNG from surface to base NORDEGG Excluding PNG from top MANNVILLE to base MANNVILLE Tract 1 TWP 59-RGE 10-W5M SE16 PNG from surface to base NORDEGG Tract 1 TWP 59-RGE 10-W5M SE16 PNG from base NORDEGG to base PEKISKO Tract 1 TWP 59-RGE 10-W5M N21 PNG from surface to base PEKISKO Tract 1 TWP 59-RGE 10-W5M E22 PNG from surface to base NORDEGG Tract 1 TWP 59-RGE 10-W5M NW22 PNG from surface to base NORDEGG Tract 1 TWP 60-RGE 11-W5M N10 NG from top PEKISKO to base PEKISKO NG from top JURASSIC to base JURASSIC Tract 1 TWP 59-RGE 11-W5M N19 NG from top LOWER MANNVILLE to base LOWER MANNVILLE Tract 1 TWP 59-RGE 11-W5M N19 NG from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 12-W5M SE10,NW22 TWP 59-RGE 11-W5M S28,NW28 NG from top LOWER MANNVILLE to base LOWER MANNVILLENG from top NORDEGG to base NORDEGG NG from top PEKISKO 2019 ANNUAL REPORT Whitecourt 933 Whitecourt 933 Whitecourt 935 Whitecourt 21400 Whitecourt 21400 Whitecourt 21400 Whitecourt 21400 Whitecourt 21400 Whitecourt 21400 Whitecourt 21400 Whitecourt 38505 Whitecourt 38505 to base PEKISKO Tract 1 TWP 59-RGE 11-W5M E30 NG from top BELLY RIVER to base BELLY RIVER NG from top LOWER MANNVILLE to base LOWER MANNVILLE Tract 1 TWP 59-RGE 11-W5M E30 NG from top NORDEGG to base NORDEGG NG from top PEKISKO to base PEKISKO Tract 1 TWP 59-RGE 11-W5M NE32,W33 TWP 60-RGE 11-W5M W4,5 NG from top PEKISKO to base PEKISKO Tract 1 TWP 59-RGE 12-W5M NE10 PNG from surface to base UPPER MANNVILLE Tract 1 TWP 59-RGE 12-W5M W11 PNG from surface to base NORDEGG Excluding NG from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 12-W5M NE10,E15 PNG from base UPPER MANNVILLE to base NORDEGG Excluding NG from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 12-W5M E15 PNG from surface to base UPPER MANNVILLE Tract 1 TWP 59-RGE 12-W5M NE10,W11,W14,E15 NG from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 12-W5M W14 CBM from top UPPER MANNVILLE to base UPPER MANNVILLE PNG from surface to base NORDEGG Excluding PNG from top UPPER MANNVILLE to base UPPER MANNVILLE Excluding NG from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 12-W5M W14 PNG from top UPPER MANNVILLE to base UPPER MANNVILLE Excluding CBM Tract 1 TWP 59-RGE 12-W5M W10 PNG from surface to base UPPER MANNVILLE Tract 1 TWP 59-RGE 12-W5M W10,W15,SW22 NG from top NORDEGG to base NORDEGG Whitecourt 38505 Whitecourt 38505 Whitecourt 38505 Whitecourt 1263 5 Whitecourt 21401 8 Whitecourt 21401 10 Whitecourt 16143A Whitecourt 5496080102 10 Whitecourt 5496080102 Whitecourt 5496080102 Whitecourt 5496080102 Whitecourt 37822 5 10 5 10 10 7 10 10 10 3 3 2 2 10 NG from top LOWER MANNVILLE to base LOWER MANNVILLE NG from top PEKISKO to base PEKISKO Tract 1 TWP 59-RGE 12-W5M W15 PNG from surface to base UPPER MANNVILLE Tract 1 TWP 59-RGE 12-W5M W10,W15 PNG from base UPPER MANNVILLE to base PEKISKO Excluding NG from top LOWER MANNVILLE to base LOWER MANNVILLE Excluding NG from top PEKISKO to base PEKISKO Excluding NG from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 12-W5M SW22 PNG from surface to base PEKISKO Excluding NG from top LOWER MANNVILLE to base LOWER MANNVILLE Excluding NG from top NORDEGG to base NORDEGG Excluding NG from top PEKISKO to base PEKISKO Tract 1 TWP 59-RGE 12-W5M E22 NG from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 12-W5M N23,SW23 NG from top NORDEGG to base NORDEGG Tract 1 TWP 59-RGE 12-W5M N23,SW23 PNG from surface to base NORDEGG Excluding NG from top NORDEGG to base NORDEGG Excluding NG from top BELLY RIVER to base BELLY RIVER Tract 1 TWP 60-RGE 10-W5M N7,SW7 PNG from surface to base NORDEGG Tract 1 TWP 60-RGE 10-W5M 10 PNG from surface to base MANNVILLE Tract 1 TWP 60-RGE 10-W5M 10 WELLBORE ONLY Tract 1 TWP 60-RGE 10-W5M 16 PNG from surface to base MANNVILLE Tract 1 TWP 60-RGE 10-W5M 9 PNG from surface to base MANNVILLE Tract 1 TWP 60-RGE 11-W5M E1 PNG from surface to base PEKISKO Page | 76 Area Lessor/Crown # Rights Held Active WI % Area Lessor/Crown # Rights Held WHITEBARK ENERGY LTD Shareholder Information Area Lessor/Crown # Rights Held Whitecourt 120106B Whitecourt 120106B Whitecourt 120106B Whitecourt 120106B Whitecourt 0597030792 Whitecourt 0597030792 Excluding NG from top JURASSIC to base JURASSIC Tract 1 TWP 60-RGE 11-W5M E8 PNG from surface to base NORDEGG Excluding NG from top NORDEGG to base NORDEGG Excluding CBM Tract 1 TWP 60-RGE 11-W5M W16 PNG from surface to base PEKISKO Excluding CBM Excluding NG from top PEKISKO to base PEKISKO Excluding NG from top NORDEGG to base NORDEGG Tract 1 TWP 60-RGE 11-W5M E8 NG from top NORDEGG to base NORDEGG CBM from surface to base NORDEGG Tract 1 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 Tract 1 TWP 60-RGE 11-W5M S10 NG from top PEKISKO to base PEKISKO NG from top JURASSIC to base JURASSIC Tract 1 TWP 60-RGE 11-W5M S10 PNG from surface to base NORDEGG Active WI % 4 Whitecourt 111574 4 Whitecourt 111574 Whitecourt CANPAR ETAL 4 4 8 10 Whitecourt CANPAR ETAL Whitecourt 111573 Whitecourt 111573 Excluding NG from top JURASSIC to base JURASSIC Excluding NG from top PEKISKO to base PEKISKO Tract 1 TWP 59-RGE 10-W5M N20 PNG from surface to base PEKISKO Excluding CBM Tract 1 TWP 59-RGE 10-W5M N20 CBM from surface to base PEKISKO Tract 1 TWP 60-RGE 12-W5M SE2 PNG from surface to base BASEMENT Excluding NG from top NORDEGG to base NORDEGG Excluding NG from top LOWER MANNVILLE to base LOWER MANNVILLE Excluding NG from top PEKISKO to base PEKISKO Tract 1 TWP 60-RGE 12-W5M SE2 NG from top LOWER MANNVILLE to base LOWER MANNVILLE NG from top NORDEGG to base NORDEGG NG from top PEKISKO to base PEKISKO Tract 1 TWP 59-RGE 10-W5M NW15 PNG from surface to base NORDEGG Excluding PNG from top MANNVILLE to base MANNVILLE Tract 1 TWP 59-RGE 10-W5M SW22 PNG from surface to Whitecourt 111573 4 Whitecourt 0501030376 Whitecourt 0595040193 10 10 10 10 Whitecourt 0500110822 Wizard Lake 0418020147 Wizard Lake PRAIRIESKY Wizard Lake PRAIRIESKY Wizard Lake PARAMOUNT 10 Wizard Lake 0419010049 base NORDEGG Tract 1 TWP 59-RGE 10-W5M NE16,SE21 PNG from surface to base PEKISKO Tract 1 TWP 60-RGE 11-W5M 24 PNG from surface to base PEKISKO Tract 1 TWP 64-RGE 14-W5M 26 PNG from surface to base BLUESKY- BULLHEAD Excluding CBM from top MANNVILLE to base MANNVILLE Tract 1 TWP 63-RGE 10-W5M 26 PNG from surface to base VIKING Tract 1 TWP 48-RGE 27-W4M W16 PNG from surface to base NISKU Tract 1 TWP 48-RGE 27-W4M 5 TWP 48-RGE 27-W4M 9 PNG from top MANNVILLE to base MANNVILLE Tract 1 TWP 48-RGE 27-W4M 17 PNG from top MANNVILLE to base MANNVILLE Tract 1 TWP 48-RGE 27-W4M 8 PNG from top MANNVILLE to base MANNVILLE Tract 1 TWP 48-RGE 27-W4M 22 PNG from surface to base MANNVILLE Active WI % 10 10 20 10 30 30 30 30 30 2019 ANNUAL REPORT Page | 77