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WEC - Western Engineered Containment
Hazloc Heaters
Copper Tip Energy Services
WEC - Western Engineered Containment
Hazloc Heaters
Copper Tip Energy

Point Loma Resources Announces Wizard Lake Transaction Update and Share Issuance

CALGARY, AB – Point Loma Resources Ltd. (TSXV:PLX) (“Point Loma” or the “Corporation“) is pleased to provide an update regarding the transaction to rationalize its assets and monetize its working interest at Wizard Lake, Alberta and relating to an issuance of shares to debenture holders of the Corporation.


  • As per the Corporation’s December 24, 2019 press release, Point Loma has completed the first closing of the Wizard Lake transaction (the “Transaction“) with the transfer of a 10% working interest by the Corporation in the Wizard Lake properties to Salt Bush Energy Ltd. (“Salt Bush“) in exchange for $1.2 million cash and the transfer by Salt Bush of working interest properties to Point Loma.
  • The balance of the Transaction is scheduled to be completed over two additional closings. Pursuant to the purchase and sale agreement with Salt Bush, Point Loma will receive an additional $2.8 million on the second closing, which is anticipated prior to March 31, 2020. Point Loma will also receive shares of Salt Bush’s parent, Whitebark Energy Ltd. (WBE:ASX) on the second closing in the amount of $2.0 million, of which $1.0 million of shares will be held in escrow for 4 months and $1.0 million of shares will be released upon the final closing, on or about December 31, 2020, subject to receipt of regulatory approvals.
  • The funds from the Transaction will be utilized to commence a multi-stage corporate turnaround plan.
  • The Transaction has increased Point Loma’s net acreage to approximately 165,000 acres, where the Corporation has identified future locations and opportunities analogous to Point Loma’s 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 .

Wizard Lake

The Wizard Lake field is now on production and, as per the Whitebark announcement of January 21, 2020, the three wells producing in the pool “continued to produce through the extreme cold weather, albeit at a reduced average rate of approximately 750 boe/d (470 bopd).” This result is proof of concept of the Mannville horizontal oil opportunities that Point Loma carries in inventory.

Forbearance Fee

Pursuant to forbearance agreements (“Forbearance Agreements“) entered into by the Corporation with each of Kasten Resources Inc. (“Kasten“) and Richard Yurko (“Yurko” and together with Kasten, the “Lenders“) in respect of the $2.5 million aggregate principal amount of secured debentures of the Corporation (the “Secured Debentures“) outstanding and owing to the Lenders, the Lenders have agreed to consent to the Transaction and not to enforce any rights under the Secured Debentures up until June 30, 2020 and, in exchange for such forbearance of the Lenders, the Corporation has agreed to pay a forbearance fee in the amount of $50,000 to each of the Lenders (the “Forbearance Fee“). The Forbearance Fee will be satisfied by the issuance by the Corporation of such number of common shares (each, a “Common Share“) of the Corporation as is arrived at by dividing the sum of $50,000 by the weighted average trading price of the common shares of the Corporation on the TSX Venture Exchange (the “TSXV“), less such maximum discount as provided for in the policies of the TSXV, in the 20 days preceding the share issuance. The Forbearance Fees shall be paid in accordance with TSXV Policy 5.1 – Loans, Loan Bonuses, Borrower’s Fees and Commissions, subject to the approval of the TSXV.

In the event that the issuance price of each Common Share exceeds $0.066 per share (the “Issue Price“), then the number of Common Shares issuable by the Corporation to the Lender (the “Number of Common Shares Issued“) shall be determined by dividing the sum of $50,000 by the Issue Price and a cash payment shall also be payable to the Lender by the Corporation. The amount of the cash payment shall be equal to: 750,000 less the Number of Common Shares Issued multiplied by the Issue Price (the “Additional Cash Payment“).

The Common Shares are subject to a four month hold period from the date of issue and will be issued on or before January 31, 2020.

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, Nordegg, and Duvernay Shale 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 or Point Loma’s profile on the System for Electronic Document Analysis and Retrieval website at

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