Whitebark Energy Limited (ASX:WBE), an exploration and production company featuring low-cost oil and gas production in Canada, a substantial contingent gas resource in Western Australia, and three EPG permit areas in Queensland, has announced a binding Sale and Purchase Agreement (SPA) with Conflux Energy Corp. Conflux will acquire Whitebark’s remaining 10% working interest in the Wizard Lake assets in Alberta, Canada, through the purchase of Whitebark’s wholly owned subsidiary, Rex Energy Limited. Whitebark had previously sold a 90% interest in the Wizard Lake assets to Conflux in June 2024.
The decision to divest the remaining stake in Wizard Lake follows Whitebark’s assessment of its asset base after the King Energy Takeover. The company has determined that selling its remaining interest constitutes a natural progression, allowing it to concentrate efforts on its Australian assets, including the newly acquired Alinya Project. The ASX has confirmed that Listing Rules 11.1.2, 11.1.3, and 11.2 do not apply to the proposed sale.
Under the terms of the agreement, Whitebark will receive CAD$141,486, subject to adjustments under the Joint Operating Agreement. Rex Energy also holds a debt of CAD$173,530 to Conflux; as consideration for the acquisition Conflux has agreed to waive CAD$32,043.98 of excess debt. Whitebark’s Chairman, Mark Lindh, thanked Conflux Energy for their co-operation and support throughout the transaction process and reiterated the company’s focus on its existing portfolio and long-term vision as an Australian-based exploration and production company. Sayer Energy Advisors acted as financial advisor to Whitebark for the transaction.
