Evaluated Properties |
4. EVALUATED PROPERTIES
The Company’s current properties can be summarized
as follows.
Cost |
|
Canadian properties |
|
|
United States properties |
|
|
Total |
|
As at January 1, 2018 |
|
$ |
— |
|
|
$ |
14,312,580 |
|
|
$ |
14,312,580 |
|
Additions |
|
|
1,246,216 |
|
|
|
— |
|
|
|
1,246,216 |
|
Dispositions |
|
|
— |
|
|
|
(3,962,042 |
) |
|
|
(3,962,042 |
) |
Asset retirement cost additions |
|
|
1,313,982 |
|
|
|
— |
|
|
|
1,313,982 |
|
Foreign currency translation |
|
|
(116,451 |
) |
|
|
— |
|
|
|
(116,451 |
) |
As at December 31, 2018 |
|
$ |
2,443,747 |
|
|
$ |
10,350,538 |
|
|
$ |
12,794,285 |
|
Additions |
|
|
— |
|
|
|
375,000 |
|
|
|
375,000 |
|
Foreign currency translation |
|
|
102,017 |
|
|
|
— |
|
|
|
102,017 |
|
As at June 30, 2019 |
|
$ |
2,545,764 |
|
|
$ |
10,725,538 |
|
|
$ |
13,271,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depletion |
|
|
|
|
|
|
|
|
|
|
|
|
As at January 1, 2018 |
|
|
— |
|
|
|
1,068,795 |
|
|
|
1,068,795 |
|
Dispositions |
|
|
— |
|
|
|
(3,340,779 |
) |
|
|
(3,340,779 |
) |
Impairment of oil and gas properties |
|
|
— |
|
|
|
2,322,255 |
|
|
|
2,322,255 |
|
Depletion |
|
|
435,722 |
|
|
|
11,280 |
|
|
|
447,002 |
|
Foreign currency translation |
|
|
(22,065 |
) |
|
|
— |
|
|
|
(22,065 |
) |
As at December 31, 2018 |
|
$ |
413,657 |
|
|
$ |
61,551 |
|
|
$ |
475,208 |
|
Impairment of oil and gas properties |
|
|
|
|
|
|
|
|
|
|
|
|
Depletion |
|
|
431,735 |
|
|
|
— |
|
|
|
431,735 |
|
Foreign currency translation |
|
|
25,214 |
|
|
|
— |
|
|
|
25,214 |
|
As at June 30, 2019 |
|
$ |
870,606 |
|
|
$ |
61,551 |
|
|
$ |
932,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net book value as at December 31, 2018 |
|
$ |
2,030,090 |
|
|
$ |
10,288,987 |
|
|
$ |
12,339,145 |
|
Net book value as at June 30, 2019 |
|
$ |
1,675,158 |
|
|
$ |
10,663,987 |
|
|
$ |
12,339,145 |
|
On November 1, 2018, the Company entered into a Purchase
and Sale Agreement (“PSA”) with Crossroads Petroleum L.L.C. and Houston Gulf Energy (“HGE”) to sell 100% working
interest in the NOACK field assets located in Milam County, Texas (the “NOACK Assets”). HGE agreed to pay $375,000 but defaulted
on payment after making payments of $255,000, leaving a $120,000 receivable balance. The receivable balance was written off in April 2019.
Consequently, the $255,000 was recognized as a gain on sale of assets. See Note 13 – Subsequent Events for discussion about the
subsequent “re-sale” of the NOACK property.
|