CALGARY – Point Loma Resources Ltd. (TSXV:PLX) (“Point Loma” or the “Corporation“) is pleased to announce the first closing of a transaction to rationalize its assets and monetize its working interest at Wizard Lake, Alberta.
- As per the December 17, 2019 press release, Point Loma has completed the first closing of the Wizard Lake transaction (the “Transaction“) with the receipt of $1.2 million cash consideration and the transfer of various working interest properties to Point Loma. Point Loma has also transferred a 10% working interest in its Wizard Lake property to Salt Bush Energy Ltd. (“Salt Bush“). The balance of the Transaction is scheduled to be completed over two additional closings. Pursuant to the Purchase and Sale Agreement, Point Loma will receive an additional $2.8 million on the second closing, which is anticipated prior to March 31, 2020, subject to a financing by Whitebark Energy Ltd. (WBE:ASX, “Whitebark“), the parent company of Salt Bush and receipt of regulatory approvals. Share consideration in connection with the Transaction will be $2.0 million of stock in Whitebark, to be issued on completion of the second closing with $1.0 million held in escrow for 4 months and $1.0 million released upon the final closing, on or about December 31, 2020, subject to receipt of regulatory approvals.
- The additional production associated with the properties transferred to the Corporation is expected to supplement Point Loma’s revenues immediately.
- The Transaction is expected to increase Point Loma’s net acreage to approximately 165,000 acres where the Corporation has identified future locations and opportunities analogous to the Wizard Lake discovery.
Point Loma maintains an extensive inventory of additional opportunities identified through analysis of historical penetrations that are indicative of bypassed oil pay on its lands. A description of the Corporation’s other oil pool development opportunities can be found in the corporate presentation on the Point Loma website at www.pointloma.ca.
About Point Loma
Point Loma is a public oil and gas exploration and development company focused on conventional and unconventional oil and gas reservoirs in west central Alberta. The Corporation controls over 165,000 net acres (250 net sections) and has a deep inventory of oil opportunities in the Mannville (Upper and Lower), Banff and Nordegg formations. Point Loma’s business plan is to utilize its experience to drill, develop and acquire accretive assets with potential to employ horizontal multi-stage frac technology and to exploit opportunities for secondary recovery. For more information, please visit Point Loma’s website at www.pointloma.ca or Point Loma’s profile on the System for Electronic Document Analysis and Retrieval website at www.sedar.com.