Thursday 25 October 2018

- Whitebark has executed a Sale and Purchase Agreement to sell its 15% interest in TP-15 to Triangle Energy (Global) Ltd for up to $5m.

- The offer structure allows Whitebark to retain exposure to any commercial success at Xanadu which is located within TP-15.

- Whitebark intends to invest the initial sale proceeds into new Canadian oil projects where the JV has recently identified exploration opportunities of over 100 million barrels of oil in place (>20 million bbls net to WBE).

- Simultaneously, negotiations on a new Canadian oil asset are progressing but remain confidential.

- Current Canadian production is currently around 320 boe/d and is benefiting from the strengthening oil and gas prices.

Whitebark Energy has executed a Sale and Purchase Agreement to sell its 15% interest in TP15 (the Perth Basin permit containing the Xanadu oil discovery) to Triangle Energy (Global) Ltd for $5 million.

The payments to be received from the Xanadu sale are:

- Upfront consideration of $3m, made up of $2m in cash payable within 3 days of the prior satisfaction of the Joint Operating Agreement Transfer Documents anticipated to be complete within 14 days, and $1m in TEG shares satisfied by the issue of 11,191,052 shares and settled prior to 1 December 2018 following TEG shareholder approval to issue and allot the shares. In the absence of this approval TEG will either pay WBE the consideration of $1m in cash or issue the 11,191,052 TEG shares from their capacity under listing rule 7.1;

- $1m Appraisal Outcome Consideration: Following an independent competent person’s report demonstrating that gross 2P plus 2C reserves exceed 8 million barrels of oil in aggregate within four years of the Effective Date, pay either $1m in cash or at WBE’s election, $500,000 in cash and $500,000 in TEG shares.

- $1m First Oil Bonus: Payment on first commercial production, being the sale of oil in excess of 1,000 barrels produced from within TP15 provided such sale occurs within seven years of the Effective Date

- Upfront shares issued as consideration will be based upon the volume weighted average price for Shares for the 30 days on which sales of Shares were recorded on the ASX prior to 8 October 2018 and for Appraisal Shares, the 30 days prior to the receipt of the competent person’s report

- Effective Date of the Transaction is 24 October 2018.