Northern Petroleum has paid the money for its latest acquisition of Canadian assets.
The company announced last month that it had agreed a deal to acquire assets in Northern Alberta, producing 211boe per day.
Final completion of the acquisition is subject to the assignment of the leases by the Alberta Energy Regulator which is expected to occur shortly.
Northern will pay a deposit of $450,000 to the AER which will be returned once production, and therefore asset value, increases, which is expected to occur after the winter work programme mid next year.