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    PTCO   US71649B4005

PETROGAS COMPANY

(PTCO)
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PETROGAS : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-K)

07/02/2021 | 04:40pm EDT

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 March 31, 2020 and 2019

The following discussion and analysis should be read in conjunction with our company's audited financial statements for the fiscal years ended March 31, 2021 and 2020 and accompanying notes appended thereto that are included in this annual report.

Results of Operations for the Year Ended March 31, 2021 and March 31, 2020



                        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 March 31, 2021 was $nil compared to $166 for the year ended March 31, 2020. Revenue was comprised of royalty revenue.

Our net loss for the year ended March 31, 2021 decreased to $116,541 from $220,391 for the year ended March 31, 2020 due to the decrease in operating expenses. During the year ended March 31, 2020, our company incurred stock based compensation of $90,000 for issuance of common shares to our President for management services.




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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 $500,000 to pay for such rework plans and an analysis of potential income based on projected oil prices in the future.

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 $ 28,634 $ 27,892 $ 742 Net (decrease) increase in cash and cash equivalents

                                       $        -     $     (387 )   $      387




As of March 31, 2021, we had a negative working capital of $408,970, as compared to a negative working capital of $314,563 as of March 31, 2020. The increase in working capital deficiency is attributed to the increase in convertible notes and accrued interest.




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Cash Flow from Operating Activities

For the year ended March 31, 2021, we used $28,634 of cash for operations primarily as a result of the net loss of $116,541, offset by amortization of debt discount of $31,558, and net changes in operating assets and liabilities of $56,349.

For the year ended March 31, 2020, we used $28,279 of cash for operations primarily as a result of the net loss of $220,391, offset by stock based compensation of $90,000, amortization of debt discount of $62,164, and net changes in operating assets and liabilities of $39,948.

Cash Flow from Investing Activities

The Company did not use any funds for investing activities in the year ended March 31, 2021 and 2020.

Cash Flow from Financing Activities

For the year ended March 31, 2021, we had $28,634 and $27,892 in net cash provided by financing activities, respectively.

During the year ended March 31, 2021, we received advancement from the Director of the Company if $6,500 and proceeds from issuance of convertible notes of $22,134.

During the year ended March 31, 2020, we received proceeds from issuance of convertible notes of $27,892.

Off-Balance Sheet Arrangements

As of March 31, 2021, the Company had no off-balance sheet arrangements.

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 the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates are reviewed periodically, and, as adjustments become necessary, they are reported in earnings in the period in which they become known. The estimates on depreciation were based on the estimated useful lives of our company's assets. Any estimates during the period have had an immaterial effect on earnings.

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.

© Edgar Online, source Glimpses

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Financials (USD)
Sales 2021 - - -
Net income 2021 -0,12 M - -
Net Debt 2021 0,31 M - -
P/E ratio 2021 -14,7x
Yield 2021 -
Capitalization 0,01 M 0,01 M -
EV / Sales 2020 56 461x
EV / Sales 2021 -
Nbr of Employees -
Free-Float 16,3%
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