Whitebark Energy’s fresh petrophysical analysis reveals significant dry gas zones in its Warro Gas Field, boosting its commercial prospects and prompting a $750,000 capital raise to fast-track development.
- Independent review identifies thicker, water-free gas zones in Warro
- Previous completion methods suppressed gas flow by targeting water-bearing intervals
- Warro’s gas-in-place estimated between 4.4 and 11.6 trillion cubic feet
- Company raises $750,000 via oversubscribed placement to fund re-completions and tests
- Strategic location near Perth and major gas infrastructure enhances project value
Technical Breakthrough Revives Warro’s Potential
Whitebark Energy Limited has delivered a major boost to its flagship Warro Gas Field in Western Australia following a comprehensive petrophysical re-evaluation. The analysis, conducted by globally respected expert Steve Adams, has identified new dry gas zones with minimal mobile water, zones that were previously overlooked due to broader, less selective completion programs. This breakthrough suggests that Warro’s commercial viability is significantly stronger than earlier assessments indicated.
Historically, completion and stimulation efforts at Warro targeted broad intervals that inadvertently included water-bearing formations. This led to water production that suppressed gas flows during testing, masking the field’s true potential. The new interpretation isolates thicker, gas-saturated intervals, particularly within the Yarragadee Lower Formation, which is known for its high-quality reservoir characteristics.
A Resource of Scale in a Tightening Market
Warro’s gas-in-place is estimated between 4.4 and 11.6 trillion cubic feet, positioning it as potentially the largest onshore gas resource in Western Australia. Its proximity, just 200 kilometres north of Perth and 30 kilometres from the Dampier to Bunbury Natural Gas (DBNG) pipeline, adds strategic value, offering a near-term opportunity to supply a tightening domestic gas market.
Despite no recent exploration or production since 2015, previous drilling confirmed a substantial resource base with test flows of 1 to 2 million standard cubic feet per day, albeit under suboptimal completion conditions. The new findings pave the way for targeted re-completions and re-tests designed to unlock commercial gas flows.
Capital Raise to Accelerate Development
To fast-track activities at Warro, Whitebark has successfully completed an oversubscribed placement raising $750,000 at $0.005 per share, with attaching options offered subject to shareholder approval. The funds will support integrating production data into updated models and executing selective re-completions aimed at the newly identified dry gas zones.
Whitebark’s Chief Operating Officer, Nik Sykiotis, expressed optimism about the revised interpretation, highlighting its potential to unlock one of Western Australia’s most significant onshore gas assets. The company’s refreshed strategy and experienced management team are positioning Whitebark to capitalize on evolving energy market dynamics.
Looking Ahead
With the Warro Gas Field’s commercial prospects now materially enhanced, Whitebark is set to demonstrate sustained gas flows through upcoming re-tests. Success here could transform the company’s standing in the Australian energy sector and contribute meaningfully to Western Australia’s domestic gas supply.
Bottom Line?
Whitebark’s technical breakthrough at Warro sets the stage for a pivotal phase, will the next tests confirm commercial gas flows?
Questions in the middle?
- Will the upcoming re-completion and re-test programs deliver sustained commercial gas flow?
- How will Whitebark navigate shareholder approval for the placement options and further capital needs?
- What impact could Warro’s development have on Western Australia’s tightening gas market supply?