Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

The provision for income taxes differs from the amount computed by applying the federal statutory income tax rate of 21% (2017 - 21%) on operations due primarily to permanent differences attributable to organizational expenses.

	Fiscal Year Ended December 31,2018			Fiscal Year Ended December 31, 2017

Income tax (benefit) expense computed at statutory rates	$	(7,986,000	)	$	(1,141,449	)
Non-deductible items		3,807,000			536,470
Change in statutory, foreign tax, foreign exchange rates and other		943,000			—
Change in valuation allowance		3,236,000			604,979
Total	$	—		$	—

Schedule of Deferred Tax Assets

The significant components of the net deferred tax asset were as follows:

	December 31,
	2018			2017
Deferred tax assets				$
Net operating loss carryforwards	$	5,410,000		$	1,874,000
Asset retirement obligation		236,000			—
Oil and gas properties		(716,000	)		(187,000	)
Property and equipment		(7,000	)		—
Other		—			—
Total deferred tax assets (liabilities)		4,923,000			1,687,000
Less: Valuation allowance		(4,923,000	)		(1,687,000	)
Net deferred tax assets (liabilities)	$	—		$	—