January 13, 2021
Salt Bush Energy Ltd., a Calgary, Alberta-based resource company engaged in the production and development of oil and natural gas assets, filed an NOI on January 13, listing approximately $19.9 million in liabilities, including $16.5 million to Whitebark Energy Limited ("Whitebark"). The company attributes its financial difficulties to several factors. Over the last three years, the company made significant capital expenditures in connection with its assets; however, production has not yet matched such expenditures. Low production volumes, declining oil prices, and large operating costs have all contributed to create what is now an urgent need to inject additional capital into the company's operations. In January, Whitebark informed the company that it was no longer willing to fund ongoing operations. In connection with Deloitte, the proposal trustee, the company has developed a SISP which contemplates an Asset Purchase Agreement between the company and Ironbark Energy Ltd., a wholly-owned Canadian subsidiary of Whitebark. During these proceedings, Whitebark will provide up to $150.0 thousand in interim financing to the company. McCarthy Tétrault is counsel to the company.