Whitebark Energy Limited announced progress on clean-up flow rates following completion of hydraulic fracture stimulation operations at the Rex-4 development well at the Company's 100% owned Wizard Lake Oil and Gas Field in Alberta, Canada. The Rex-4 well was allowed a "rest" period prior to commencing clean-up; all incremental production will go directly to market via Whitebark's 100% owned facilities at Wizard Lake. Initial managed clean-up flow rates from the Rex-4 well were reported as ~230 barrels of fracture stimulation fluid per day on November 20 2022, at a pump-rate of 3 strokes per minute.

Initial oil traces were noted in the recovered fluid on November 22 2022 at a total of approximately 800 barrels of recovered fluid. Pump rate has been gradually increased to 5 spm as of November 29 2022 with accompanying flow rates of ~380 barrels of fluid per day. Total fluid recovery to date is approximately 2,500 barrels of fluid.

By comparison Rex-1 recovered first oil traces at ~3,500 barrels of fluid and reached 10% oil cut after ~9,500 barrels of fluid; Rex-2 had first oil traces at ~1,900 barrels of fluid and reached 10% oil cut after ~5,000 barrels of fluid; Rex-3 had first oil traces at ~1,600 barrels of fluid and reached 10% oil cut after ~1,900 barrels of fluid recovery. It should be noted that previous wells were brought online at initial rates of up to 1000 barrels of fluid per day, which is considered too high a rate - drawing-down the wells and pulling frac proppant sand into the horizontal section (particularly at Rex-3). Eventual oil cut is expected to be approximately 40%, as demonstrated in wells Rex-1 through Rex-3. Rex-4 is performing according to expectations and by comparison to the other wells.

The Company's strategy remains to manage the Rex-4 wellbore carefully as it is brought into stabilised production. Having allowed the wellbore to "rest" and to heal naturally from the fracture stimulation program will help ensure that the frac sand stays in zone and maximizes the well's reserve potential. During the clean-up period flow rates have been gradually increased as appropriate based on the behaviour of the well.

As the frac fluid is increasingly recovered, Rex-4 oil flow-rates will be increased gradually over the course of several weeks to the modelled stabilised initial production rate of 300 bopd plus associated gas. Whitebark has modelled ultimate post-clean up production rates of approximately 300 barrels of oil and 1,400 mscf gas per day which will lift total Wizard Lake production to approximately ~750 boepd. The Company expects ultimate recovery of approximately 146,000 barrels of oil and 1.3 Bcf gas from Rex-4 The Company successfully ran 50 hydraulic fracture stimulation stages in the target Rex Sandstone reservoir at an approximate interval of 40m per the completion plan.

The fracture stimulation program was the most ambitious yet at Wizard Lake and was consistent with the strategic plan of increased horizontal length and a greater number of fracture stages than in previous wells. Each of the fifty 30 Tonne fracs consisted of 1 tonne of 50/140 sand followed by 29 tonnes of 16/30 sand with final concentrations of 600-800 kg/m3. A total of 1483.5 tonnes of proppant was pumped during the program.

It is planned for the next four Wizard Lake wells (Rex-5 through Rex-8) to address existing Proved ("1P") Reserves which is calculated to be 2.3 million barrels of oil equivalent¹. Whitebark plans to drill and complete all four wells from the existing well pad without further infrastructure investment required. The Company has identified 20 additional development locations which will target the remainder of the Company's 2P reserves (5.12 million barrels of oil equivalent¹ in total) and contingent resources (an additional 4.7 mmboe).

The total 100% Field 2P Reserves in Whitebark's Wizard Lake Oil and Gas Field) at 30 June 2022 are assessed to be 5.12 million barrels of oil equivalent. The barrels of oil equivalent figure comprises 1.97 million barrels of crude oil, 16.87 billion cubic feet of natural gas and 0.34 million barrels of natural gas liquids. 2P Reserves include 1P Proven Developed Producing Reserves ("PDP" - those remaining reserves attributed to existing wells Rex-1 through Rex-3); 1P Proven Undeveloped Reserves ("PUD" - those reserves accessible from existing infrastructure and requiring the drilling of Rex-4 through Rex-8); and 2P Probable Reserves (those accessible and requiring a new well-pad, new facilities and the drilling of Rex-9 through Rex-15).

The total 100% Field 2C Contingent Resources for Wizard Lake at 30 June 2022 are assessed to be 4.72 million barrels of oil equivalent. The barrels of oil equivalent figure comprises 1.91 million barrels of crude oil, 15.05 billion cubic feet of natural gas and 0.30 million barrels of natural gas liquids. The Field Contingent Resources comprise volumes attributed to future planned wells with identified locations nominated Rex-16 through Rex-28 within the modelled reservoir distribution.

Drilling of these locations will require additional facilities and the expansion of the Whitebark land position.