Quarterly report pursuant to Section 13 or 15(d)

Supplemental Information on Oil and Gas Operations

v3.21.4
Supplemental Information on Oil and Gas Operations
3 Months Ended
Nov. 30, 2021
Supplemental Information on Oil and Gas Operations [Abstract]  
SUPPLEMENTAL INFORMATION ON OIL AND GAS OPERATIONS
26. 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. 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 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)  

Three months

ended

November 30,
2021

   

Three months

ended

November 30,
2020

 
             
Construction of oil extraction plant   $
     -
    $ 4,173  
    $
-
    $ 4,173  

  

Results of operations

 

The only operating expenses incurred to date on hydrocarbon activities relate to certain maintenance and personnel costs incurred.

 

All costs were incurred in the US. 

 

(In US$ 000’s)  

Three months

ended

November 30,
2021

   

Three months

ended

November 30,
2020

 
             
Production and maintenance costs   $ 285     $ 345  
    $ 285     $ 345  

 

Proven reserves 

 

The Company does not have any proven hydrocarbon reserves as of November 30, 2021 and August 31, 2021.

 

An evaluation of the reserves at the Asphalt NW site was prepared by an outside specialist with a proved undeveloped valuation of $213. Million at a 10% discount. However the exchange of leases as detailed in note 6 will only take place once approved by SITLA.