Quarterly report pursuant to Section 13 or 15(d)

Evaluated Properties

Evaluated Properties

3 Months Ended

Mar. 31, 2020

4. EVALUATED PROPERTIES

The Company’s current properties can be summarized as follows.

Cost	Canadian properties			United States properties		Total
As at January 1, 2019	$	2,443,747		$	10,350,538	$	12,794,285
Foreign currency translation		119,687			—		119,687
As at December 31, 2019	$	2,563,434		$	10,350,538	$	12,913,972
Addition					—		—
Foreign currency translation		(213,369	)		—		(213,369	)
As at March 31, 2020	$	2,350,065		$	10,350,538	$	12,700,603

Accumulated depletion
As at January 1, 2019		413,657			61,551		475,208
Dispositions		—			—		—
Impairment of oil and gas properties		—			—		—
Depletion		1,004,832			—		1,004,832
Foreign currency translation		40,487			—		40,487
As at December 31, 2019	$	1,458,976		$	61,551	$	1,520,527

Depletion		294,331			—		294,331
Foreign currency translation		(137,019	)		—		(137,019	)
As at March 31, 2020	$	1,616,288		$	61,551	$	1,677,839

Net book value as at December 31, 2019	$	1,104,458		$	10,288,987	$	11,393,445
Net book value as at March 31, 2020	$	733,777		$	10,288,987	$	11,022,764

On August 6, 2019, the Company entered into a Purchase and Sale Agreement (“PSA”) for the sale of the same NOACK property with Flowtex Energy LLC. (“FT”). The purchaser agreed to pay $400,000 for the NOACK Assets including a $20,000 deposit that was received on August 15, 2019 and the remaining balance of $380,000 to be received by September 30, 2019. By December 31, 2019, FT had made cumulative payments of $375,000, resulting in a $25,000 account receivable to the Company at September 30, 2019 which is included in other current assets. The $400,000 was recorded as a gain on sale of properties. On July 6, 2021, the remaining $25,000 accounts receivable was settled via the following: the purchaser remitted a cash payment of $8,995, as well as paying (on the Company’s behalf) $16,005 of outstanding property tax invoices previously incurred by the Company.