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Note 5 - Impairment of Oil and Gas Properties
12 Months Ended
Jul. 31, 2025
Notes to Financial Statements  
Asset Impairment Charges [Text Block]

NOTE 5 IMPAIRMENT OF OIL AND GAS PROPERTIES

 

During the year ended July 31, 2025, the Company reviewed its oil and gas properties for indicators of impairment in accordance with ASC 360-10, Property, Plant, and Equipment. As a result of revised reserve estimates, management determined that the carrying value of certain properties exceeded their estimated undiscounted future net cash flows. The Company measured the impairment based on the estimated fair value of the affected properties, determined using discounted cash flow techniques and Level 3 inputs, including estimated future production volumes, commodity prices, operating costs, and discount rates.

 

Accordingly, the Company recognized an impairment loss of $140,744 during the year ended July 31, 2025, which is included in impairment expense within the statement of operations. The carrying value of the impaired properties was reduced to $151,456 representing their estimated fair value as of the measurement date.