Stage one saw Whitebark pay C$1.2 million cash for an additional 10% interest in the oilfield.
The second and final stage will involve Whitebark acquiring the remaining 40% prior to 31 March 2020 through the payment of C$2.8 million cash and C$2 million in Whitebark shares.
Whitebark will continue to develop Wizard Lake throughout CY2020 after recently completing its third well, Rex-3 on the project.
Through the three successfully drilled wells, the Wizard Lake Oilfield has been significantly de-risked and sole ownership offers a compelling opportunity to grow cash flows through further development.
This is reinforced through both the recent drilling success at Rex-3 and the commissioning of the enlarged and upgraded production facilities at the field.
Well-positioned with three producing oil wells
Whitebark’s managing director David Messina said: “We are pleased to have delivered on another strategic objective for 2019 with the closing of the first stage of our 100% acquisition of Wizard Lake.
“With the three oil wells now producing we enter 2020 in a very strong position.
“I would like to take this opportunity to thank our diligent and focussed employees and contractors who have got us to this position and of course the continued support of our shareholders.”