Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

The provision for income taxes differs from the amount computed by applying the federal statutory income tax rate of 21% (2019 – 21%) on operations due primarily to permanent differences attributable to organizational expenses.

	Fiscal Year Ended December 31,2019			Fiscal Year Ended December 31, 2018

Income tax (benefit) expense computed at statutory rates	$	(629,000	)	$	(7,986,000	)
Non-deductible items		69,000			3,807,000
Change in statutory, foreign tax, foreign exchange rates and other		172,000			943,000
Change in valuation allowance		388,000			3,236,000
Total	$	—		$	—

Schedule of Deferred Tax Assets

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

	December 31,
	2019			2018
Deferred tax assets				$
Net operating loss carryforwards	$	2,174,000		$	5,410,000
Asset retirement obligation		331,000			236,000
Oil and gas properties		(430,000	)		(716,000	)
Property and equipment		—	)		(7,000	)
Other		—			—
Total deferred tax assets (liabilities)		2,075,000			4,923,000
Less: Valuation allowance		(2,075,000	)		(4,923,000	)
Net deferred tax assets (liabilities)	$	—		$	—