The company, through a subsidiary, owns 60% of Wizard Lake and was able to increase the ownership in stages to 100% under and agreement.
Due to the current market environment, Whitebark has served notice to terminate the agreement and will remain with a 60% interest.
Whitebark still receives 85-100% of field income
Due to ongoing payback arrangements associated with the 2019 farm-in agreement and Wizard Lake joint operating agreement, Whitebark's subsidiary will continue to receive 85-100% of field income until all pro-rata past costs are recovered.
Furthermore, under existing agreements, Whitebark has a first right of refusal on any sale of the 40% interest it does not own.
Whitebark's managing director David Messina said: “The market has changed materially over the last two months and while our focus remains on Wizard Lake, it is clearly not the time to undertake this transaction.”
Recent cost-cuts to remain sustainable
Last week, Whitebark revealed it was combating low oil prices and the COVID-19 pandemic by cutting overhead costs.
Cuts included reducing directors’ fees and salaries by 50%.