Halo Exploration placed into receivership

FTI Consulting Canada Inc. was appointed as receiver and manager of Halo Exploration Ltd. on February 10, 2026, on application by first-ranking secured lender Invico Lending Strategies LP. Invico commenced the application seeking both the receivership order and approval of a SISP to market all or substantially all of Halo’s business and assets. The court approved the SISP concurrently with the receivership appointment, empowering the receiver to implement a structured dual-track process for sale or investment proposals.

Halo is a privately-held Alberta junior oil and gas exploration and production company operating wells and facilities in the Greater Kaybob area. The company holds a 100% working interest in certain Montney and Duvernay lands and, as of the application, 11 of its 18 wells were in production.

The receivership follows defaults under a $19 million loan agreement dated October 11, 2022, between Halo and Invico’s predecessor. The loan was secured by, among other things, a $35 million fixed and floating charge demand debenture over all present and after-acquired property. Invico later acquired the loan and security through an assignment in December 2024.

By early September 2025, Halo had failed to make scheduled principal payments and breached financial covenants. The parties entered into a forbearance agreement dated October 31, 2025, followed by a first amendment on November 27, 2025, but Halo subsequently defaulted on agreed milestones under the amended arrangement. As at January 30, 2026, Invico claimed $13,541,612.32, plus accruing interest and costs.

The enforcement comes after a 15-month strategic process initiated by Halo in October 2024 to refinance or divest assets. A proposed share acquisition collapsed in July 2025 after failing to progress beyond a non-binding letter of intent, and no bids were received by a revised August 2025 deadline. A contemplated asset purchase intended to bolster revenues also fell through in December 2025.

Under the SISP approved February 10, 2026, the receiver is directed to solicit both sale and investment proposals. The process contemplates a Phase 2 binding bid deadline of May 1, 2026.

Counsel is Fasken Martineau DuMoulin LLP for Invico, Burnet, Duckworth & Palmer LLP for the receiver, and DS Avocats for Halo.