Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

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

	Fiscal Year Ended December 31, 2021			Fiscal Year Ended December 31, 2020

Income tax (benefit) expense computed at statutory rates	$	405,000		$	(2,078,000	)
Non-deductible items		49,000			85,000
Change in statutory, foreign tax, foreign exchange rates and other		(559,000	)		(2,427,000	)
Change in valuation allowance		(105,000	)		4,420,000
Total	$	—		$	—

SCHEDULE OF DEFERRED TAX ASSETS

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

SCHEDULE OF DEFERRED TAX ASSETS

	2021			2020
	December 31,
	2021			2020
Deferred tax assets
Net operating loss carryforwards	$	6,038,000		$	5,772,000
Asset retirement obligation		498,000			679,000
Oil and gas properties		(593,000	)		(644,000	)
Property and equipment		—			6,000
Other		—			—
Total deferred tax assets (liabilities)		5,943,000			5,813,000
Less: Valuation allowance		(5,943,000	)		(5,813,000	)
Net deferred tax assets (liabilities)	$	—		$	—