Whitebark Faces Funding and Execution Challenges Amid Major Acquisition Push
Whitebark Energy has entered a definitive agreement to acquire King Energy, gaining access to one of Australia's largest prospective white hydrogen, helium, and hydrocarbon projects, while also resuming production at its Canadian oil field.
- Agreement to acquire King Energy for AUD 1.67 million
- Access to 710 million kg white hydrogen and 97 Bcf helium resources in Officer Basin
- Resumption of production at Wizard Lake asset in Alberta, Canada
- Integration of King Energy’s Richard King onto Whitebark’s board
- Advancement of geothermal-to-hydrogen projects in Queensland
Strategic Acquisition Bolsters Clean Energy Portfolio
Whitebark Energy Limited (ASX: WBE) has taken a significant step in its energy transition strategy by entering into a bid implementation agreement to acquire King Energy. This move grants Whitebark exposure to the Alinya Project in South Australia's Officer Basin, a highly prospective onshore asset with substantial resources of white hydrogen, helium, and hydrocarbons.
The acquisition, valued at approximately AUD 1.67 million, includes a 70% stake in King Energy's project with an option to acquire the remaining 30%. The P50 prospective resources at the Rickerscote prospect alone are estimated at 710 million kilograms of white hydrogen, 97 billion cubic feet of helium, and 153 million barrels of oil equivalent. These figures position Whitebark at the forefront of emerging clean energy markets in Australia.
Experienced Leadership and Operational Momentum
Adding to the strategic value, Richard King, with three decades of experience in energy project commercialization and leadership roles at major companies such as Chevron and Woodside, will join Whitebark’s board. His expertise is expected to accelerate the integration and development of the newly acquired assets.
Meanwhile, Whitebark has resumed production at its Wizard Lake oil field in Alberta, Canada, following scheduled workovers. The asset, in which Whitebark holds a 10% working interest, is producing stable output levels, contributing to cash flow stability amid the company’s pivot towards renewable energy.
Renewable Energy Initiatives and Future Outlook
Beyond hydrocarbons, Whitebark is advancing its geothermal-to-hydrogen projects in Queensland, aiming to leverage dispatchable 24-hour geothermal energy to produce hydrogen. The company is targeting a final investment decision in the second half of fiscal 2025, marking a potential milestone in Australia’s renewable energy landscape.
In Western Australia, the Warro Gas Project is being realigned as a renewable energy initiative, consistent with the state’s net-zero emissions target by 2050. Whitebark plans to focus on compliance and feasibility studies to unlock value from multiple energy streams at the site.
Financial Position and Upcoming Milestones
As of 31 December 2024, Whitebark held a modest cash balance of AUD 45,000, reflecting ongoing operational expenditures and investment activities. The company is actively pursuing capital raising efforts to support the King Energy acquisition and its broader growth strategy.
Looking ahead, Whitebark aims to complete the King Energy acquisition, integrate new management, and commence exploration activities in the Officer Basin with drilling planned for the first quarter of 2026. These developments underscore Whitebark’s commitment to expanding its asset base and positioning itself as a key player in Australia’s energy transition.
Bottom Line?
Whitebark’s acquisition of King Energy and renewed production efforts mark a pivotal moment as it seeks to capitalize on the evolving clean energy landscape.
Questions in the middle?
- How will Whitebark finance the King Energy acquisition and subsequent exploration activities?
- What are the key risks and timelines associated with drilling in the Officer Basin starting in 2026?
- How will the integration of King Energy’s management influence Whitebark’s strategic direction and operational execution?
