Point Loma agrees to sell majority of remaining Wizard Lake assets

Point Loma Resources Ltd. agreed to sell 97.5% of its 40% working interest in the Wizard Lake oil property in Alberta, Canada, to Kasten Resources Inc., 2147239 Alberta Ltd., and a private service producer in exchange for cancellation of all outstanding secured debentures and amounts owed (aggregate consideration of $2.9 million (CAN)).

Pursuant to terms of the May 2019 farmout and option agreement, partner Whitebark Energy Ltd. has a limited period to exercise a right of first refusal with respect to the working interest being sold should it choose to do so. The company said it will consider the exercise during the 30-day period.

Point Loma will retain a 1% working interest in the existing lands and wells subject to various payout provisions and will retain operatorship of the property.

The sale is expected to close on or about May 21, 2020.