Quarterly report pursuant to Section 13 or 15(d)

Supplemental Information on Oil and Gas Operations

v3.21.1
Supplemental Information on Oil and Gas Operations
6 Months Ended
Feb. 28, 2021
Oil and Gas Property [Abstract]  
SUPPLEMENTAL INFORMATION ON OIL AND GAS OPERATIONS
25. 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)   Three months
ended
February 28,
2021
    Three months
ended
February 29,
2020
   

Six months
ended
February 28,
2021

   

Six months

ended

February 29,
2020

 
                         
Advanced royalty payments   $ -     $ 40     $ -     $ 100  
Deposits paid on mineral rights     -       50       -       610  
Construction of oil extraction plant     605       223       4,778       2,116  
    $ 605     $ 313     $ 4,778     $ 2,826  

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)   Three months
ended
February 28,
2021
    Three months
ended
February 29,
2020
   

Six months
ended
February 28,
2021

   

Six months
ended
February 29,
2020

 
                         
Advanced royalty payments applied or expired     -       112       -       204  
Production and maintenance costs     19       728       365       1,406  
    $ 19     $ 840     $ 365     $ 1,610  

Proven reserves 


The Company does not have any proven hydrocarbon reserves as of February 28, 2021and August 31, 2020.