This annual report on Form 10-K contains forward-looking statements within the meaning of the federal securities laws. These include statements about our expectations, beliefs, intentions or strategies for the future, which we indicate by words or phrases such as "anticipate," "expect," "intend," "plan," "will," "we believe," "management believes" and similar language. Except for the historical information contained herein, the matters discussed in this "Management's Discussion and Analysis of Financial Condition and Results of Operations," and elsewhere in this current report on Form 10-K are forward-looking statements that involve risks and uncertainties. The factors listed in the section captioned "Risk Factors," as well as any cautionary language in this current report on Form 10-K, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from those projected. Except as may be required by law, we undertake no obligation to update any forward-looking statement to reflect events after the date of this current report on Form 10-K.
Overview
We intend for this discussion to provide information that will assist in understanding our financial statements, the changes in certain key items in those financial statements, and the primary factors that accounted for those changes, as well as how certain accounting principles affect our financial statements.
Our company has experienced net losses to date, and it has not generated revenue from operations, we will need additional working capital to service debt and for ongoing operations, which raises substantial doubt about our ability to continue as a going concern. Management of our company has developed a strategy to meet operational shortfalls which may include equity funding, short term or long term financing or debt financing, to enable our company to reach profitable operations. If we fail to generate positive cash flow or obtain additional financing, when required, we may have to modify, delay, or abandon some or all of our business and expansion plans
Corporate History
Fiscal Years Ended
The following discussion and analysis should be read in conjunction with our
company's audited financial statements for the fiscal years ended
Results of Operations for the Year Ended
Year Year Ended Ended March 31, March 31, 2021 2020 Changes Royalty Revenue $ -$ 166 $ (166 ) Operating Expenses$ 26,713 $ 119,433 $ (92,720 ) Other Expenses$ 89,828 $ 101,124 $ (11,296 ) Net Loss$ (116,541 ) $ (220,391 ) $ 103,850
Revenue for the year ended
Our net loss for the year ended
15 Table of Contents Plan of Operation
Management is considering plans to reactive its inactive wells through a rework
program on the Leases. Additional rights may be leased out from mineral owner to
deeper zones near 5,000 feet and below. However, such plans are subject to
raising financing of
Our company is actively seeking to acquire producing and non-producing leases that will allow us to explore and drill in high-profile pay zones.
We intend to raise capital at a low cost from private placements so that we may acquire numerous additional leases, and to commence drilling, and taking advantage of the inevitable uptick in oil prices to come.
In the current climate, our company believes that there are a very large number of oil & gas leases under distress due to the depressed gas prices and that we can strategically position our company to acquire as many of these leases as possible at a discount to market value, hence creating shareholder value.
On the Burns and Rogers Leases, we intend to rework all current wells and bring them back to production once oil prices are in a suitable range. We are planning an exploration strategy to drill new wells on the current Leases, as well as acquire deeper rights in order to drill some of the wells at great depths. We expect that reservoirs at those depths could yield a very high daily output of oil.
Liquidity and Capital Resources
Working Capital As of As of March 31, March 31, 2021 2020 Changes Current Assets $ - $ - $ - Current Liabilities$ 408,970 $ 314,563 $ 94,407 Working Capital (Deficiency)$ (408,970 ) $ (314,563 ) $ (94,407 ) Cash Flows Year Year Ended Ended March 31, March 31, 2021 2020 Changes Net cash used in Operating Activities$ (28,634 ) $ (28,279 ) $ (355 )
Net cash provided by Financing Activities
$ -$ (387 ) $ 387
As of
16 Table of Contents
Cash Flow from Operating Activities
For the year ended
For the year ended
Cash Flow from Investing Activities
The Company did not use any funds for investing activities in the year ended
Cash Flow from Financing Activities
For the year ended
During the year ended
During the year ended
Off-Balance Sheet Arrangements
As of
Critical Accounting Policies
We believe that the following accounting policies are the most critical to aid you in fully understanding and evaluating this "Management's Discussion and Analysis of Financial Condition and Results of Operation."
Use of Estimates
The preparation of consolidated financial statements in conformity with
accounting principles generally accepted in
Recent Accounting Pronouncements
Our company has implemented all new accounting pronouncements and does not believe that there are any other accounting pronouncements that have been issued that may have a material impact on its financial statements.
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