Annual report pursuant to Section 13 and 15(d)

Supplemental Information on Oil and Gas Operations

v3.21.2
Supplemental Information on Oil and Gas Operations
12 Months Ended
Aug. 31, 2021
Supplemental Information on Oil and Gas Operations [Abstract]  
SUPPLEMENTAL INFORMATION ON OIL AND GAS OPERATIONS
35. SUPPLEMENTAL INFORMATION ON OIL AND GAS OPERATIONS

 

Supplemental unaudited information regarding the Company’s oil and gas activities is presented in this note.

 

The Company has not commenced commercial operations, therefore the disclosure of the results of operations of hydrocarbon activities is limited to advance royalties paid. All expenditure incurred to date is capitalized as part of the development cost of the company’s oil extraction plant.

 

The Company does not have any proven hydrocarbon reserves or historical data to forecast the standardized measure of discounted future net cash flows related to proven hydrocarbon reserve quantities. Upon the commencement of production, the Company will be able to forecast future revenues and expenses of its hydrocarbon activities.

 

Costs incurred

 

The following table reflects the costs incurred in hydrocarbon property acquisition and development expenses.

 

All costs were incurred in the US.

 

(In US$ 000’s)   Year ended August 31,
2021
    Year ended August 31,
2020
 
             
Advanced royalty payments   $
-
    $ 120  
Mineral lease acquisition costs – Unproven properties    
-
     
-
 
Construction of oil extraction plant     5,513       2,073  
    $ 5,513     $ 2,193  

 

Results of operations

 

The only operating expenses incurred to date on hydrocarbon activities relate to minimum royalties paid on mineral leases that the Company has entered into and certain maintenance and personnel costs incurred.

 

All costs were incurred in the US. 

 

(In US$ 000’s)   Year ended August 31,
2021
    Year ended August 31,
2020
 
             
Advanced royalty payments applied or expired   $
-
    $ 988  
Production and maintenance costs     2,091       1,714  
    $ 2,091     $ 2,702  

 

Proven reserves 

 

The Company does not have any proven hydrocarbon reserves as of August 31, 2021 and 2020.