Whitebark Energy Ltd (ASX:WBE) has lifted its overall interest in the Wizard Lake Oilfield to 85% after completing the lease renewal for mineral rights in three sections of land totalling 713 hectares.
This follows the expiry of a Right of First Refusal (ROFR) for the company’s JV partner to participate in the renewal.
The company's Canadian subsidiary Salt Bush Energy (SBE) now holds 100% interest in the three sections and as a result, interest in more than 10 sections covering the oilfield has increased to an average of 85%.
Ownership of the individual sections ranges from 60% to 100%, however as sections are renewed, under the ROFR rules the company may increase its interest in the sections to 100% which would further increase the average ownership of the field.
Following the current entitlement offer to raise up to A$3 million, Whitebark will be well-positioned to continue to selectively increase its interest in the field.
Whitebark owns 100% of the facilities and associated pipelines and operates the field.
Recovering oil price
Managing director David Messina said: “The increase in our working interest across the entire field places control of development firmly in Whitebark’s hands.
“As the oil price continues to recover over time, field development activities can recommence while we carefully manage to increase production through our current workover program.”
Shares have been as much as 25% higher to 0.5 cents intra-day.