Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

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.

SCHEDULE OF INCOME TAX EXPENSES

		1			1
	Fiscal Year Ended December 31, 2020			Fiscal Year Ended December 31, 2019

Income tax (benefit) expense computed at statutory rates	$	(2,078,000	)	$	(629,000	)
Non-deductible items		85,000			69,000
Change in statutory, foreign tax, foreign exchange rates and other		(2,427,000	)		172,000
Change in valuation allowance		4,420,000			388,000
Total	$	—		$	—

SCHEDULE OF DEFERRED TAX ASSETS

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

SCHEDULE OF DEFERRED TAX ASSETS

		2020			2019
	December 31,
	2020			2019
Deferred tax assets				$
Net operating loss carryforwards	$	5,772,000		$	2,174,000
Asset retirement obligation		679,000			331,000
Oil and gas properties		(644,000	)		(430,000	)
Property and equipment		6,000			—
Other		—			—
Total deferred tax assets (liabilities)		5,813,000			2,075,000
Less: Valuation allowance		(5,813,000	)		(2,075,000	)
Net deferred tax assets (liabilities)	$	—		$	—