Whitebark Energy sells Canadian oil & gas assets to focus on Aussie growth
- Doug Bright
- Sep 17
- 3 min read
Whitebark Energy (ASX: WBE) has inked a binding sale and purchase agreement with Conflux Energy Corp to divest its remaining 10 per cent working interest in the Wizard Lake oil and gas assets in Alberta, Canada, held through its wholly owned subsidiary, Rex Energy.
The transaction, valued at C$141,486 (A$154,049), will see Conflux acquire full ownership of Rex Energy and its Wizard Lake interests. Whitebark sold 90 per cent of Wizard Lake to Conflux in June last year.
The deal allows Whitebark to streamline its portfolio and sharpen its focus on high-potential Australian assets, particularly its recently acquired Alinya project in South Australia’s Officer Basin.
Whitebark assessed its asset base after its takeover of King Energy in February and decided to make a strategic pivot to prioritising assets with significant upside in Australia.
Calgary-based Sayer Energy Advisors facilitated the latest transaction. The ASX confirmed the deal does not require shareholder approval as it does not constitute the disposal of Whitebark’s main undertaking.
We are focused on Whitebark’s existing portfolio and Whitebark’s long-term vision for the company as an Australian-based exploration and production company.
Whitebark Energy Chairman Mark Lindh
Under the sale terms, Conflux will waive C$32,043.98 (A$34,890) in excess debt owed by Rex Energy, satisfying the full consideration for the acquisition. Whitebark will settle any remaining Rex Energy liabilities, ensuring a clean exit from its Canadian operations.
The divestment underscores Whitebark’s commitment to unlocking value from its Australian portfolio, headlined by the Alinya project in the Officer Basin in Central Australia.
The project spans 20,000 square kilometres across two permits, about 250 kilometres west of Coober Pedy, to target some of the largest undrilled, seismically defined structures in onshore Australia.
Independent assessments by Sproule ERCE and Fluid Energy Consultants highlight the project’s immense potential, with best-estimate 2U prospective resources of 1.06 trillion cubic feet (Tcf) of gas, 145 million barrels of oil, 227 million kilograms of hydrogen, and 45 billion cubic feet (Bcf) of helium at the Rickerscote area alone.
High-end 3U estimates are even more compelling, reaching up to 4.1Tcf of gas, 617 million barrels of oil, 1.27 billion kilograms of hydrogen and 209Bcf of helium.
The Alinya project’s appeal lies in its multi-play potential. Three reservoir intervals are testable by a single vertical well at Rickerscote-1.
Proven reservoirs, robust top-seals and mature source rocks underpin the project’s commercial promise.
Whitebark plans to launch a hydrogen and helium soil gas sampling program this month, with an exploration well planned in 2026, alongside a farmout process to attract strategic partners.
Whitebark’s Warro gas field in Western Australia’s Perth Basin also offers upside. With mid-case contingent and prospective resources of 7.3Tcf, the field is under technical review to reassess its potential, including deeper targets below the Warro Sands area.
Seismic reprocessing is being considered to advance the project, capitalising on the WA Government’s 2019 approval of onshore fracture stimulation.
By exiting Wizard Lake, Whitebark is doubling down on its Australian assets, positioning itself to capitalise on the Officer Basin’s world-class potential and Warro’s significant gas resources.
The Alinya project, with its massive scale and multi-commodity prospects, is poised to drive long-term value, with near-term catalysts such as a 2025 sampling program and 2026 drilling keeping investors’ eyes firmly on Whitebark’s next moves.
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