Whitebark Energy Finalizes CAD$141,486 Sale of Remaining 10% Wizard Lake Interest
Whitebark Energy has finalized the sale of its remaining 10% interest in the Wizard Lake assets to Conflux Energy, marking a strategic shift to focus on Australian projects.
- Sale and Purchase Agreement signed for remaining 10% interest in Wizard Lake
- Consideration of CAD$141,486 with Conflux waiving excess debt of CAD$32,044
- Transaction follows prior divestment of 90% interest completed in March 2025
- Whitebark to concentrate on Australian assets including the Alinya Project
- Sale does not require shareholder approval and is not disposal of main undertaking
Strategic Divestment in Canadian Operations
Whitebark Energy Limited (ASX – WBE) has taken a decisive step in reshaping its asset portfolio by signing a binding Sale and Purchase Agreement to sell its remaining 10% working interest in the Wizard Lake oil and gas assets located in Alberta, Canada. This transaction, executed through its wholly owned subsidiary Rex Energy Limited, transfers full ownership of the Canadian operations to Conflux Energy Corp.
The deal, valued at CAD$141,486 subject to adjustments under the Joint Operating Agreement, follows an earlier divestment in June 2024 when Whitebark sold 90% of its interest in Wizard Lake to Conflux. The completion of that initial sale left Whitebark with a minority stake, which it has now fully divested.
Financial and Operational Implications
Interestingly, Rex Energy carried a total debt of CAD$173,530 to Conflux, exceeding the equity value of the assets sold. Conflux has agreed to waive the excess debt of approximately CAD$32,044, effectively simplifying the transaction and relieving Whitebark of further liabilities related to Rex Energy. This arrangement underscores Conflux’s commitment to consolidating its position in the Wizard Lake assets.
Whitebark’s Chairman, Mark Lindh, expressed gratitude towards Conflux for their cooperation and emphasized the company’s renewed focus on its Australian portfolio. This includes the recently acquired Alinya Project, signaling a strategic pivot towards domestic exploration and production, as well as the growing renewable energy sector in Australia.
Regulatory and Market Context
The Australian Securities Exchange confirmed that the transaction does not trigger certain listing rules, and shareholder approval was not required, as the sale does not constitute disposal of Whitebark’s main undertaking. This smooth regulatory pathway allowed Whitebark to expedite its exit from Canadian operations without disrupting its broader corporate strategy.
Financial advisors Sayer Energy Advisors, based in Calgary, facilitated the transaction, ensuring alignment with market expectations and asset valuations. The completion of this sale marks a significant milestone in Whitebark’s transformation from a Canada-focused oil and gas producer to an Australian-centric energy company with ambitions in both traditional and renewable sectors.
Looking Ahead
With the divestment behind it, Whitebark is positioned to channel resources and management attention into its Australian projects, including the Alinya Project and exploration permits in Queensland. Investors will be watching closely to see how this strategic refocus translates into operational progress and value creation in the coming quarters.
Bottom Line?
Whitebark’s full exit from Canadian assets clears the way for a sharper focus on Australian growth opportunities.
Questions in the middle?
- What are the expected financial impacts of the sale adjustments under the Joint Operating Agreement?
- How will Whitebark’s renewed focus on Australian projects affect its production and revenue outlook?
- What role will the Alinya Project play in Whitebark’s future growth strategy?
