Through a court-approved sales process, 2635672 Alberta Ltd. (the purchaser) acquired a 45 percent working interest in an oilfield from the Debtors. The transaction was approved by the Court, with notice provided to all relevant stakeholders.

After the Approval and Vesting Order (AVO), the purchaser closed the transaction and notified the remaining 55 percent working interest owners and operator, Whitehaven Beach Capital Corp. and Title Shot Oil Inc. (the operator), of the assignment. The operator refused to recognize the purchaser’s ownership, claiming that Arrow Point Oil & Gas Ltd. (the third party) actually owned the 45 percent interest. Importantly, the third party had been served with all relevant court materials throughout the proceedings.

Due to the operator’s refusal, the purchaser sought a court declaration affirming its ownership. Justice Feasby of the Alberta Court ultimately ruled in favor of the purchaser, confirming it as the rightful owner of the 45 percent working interest.