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Note 4 - Oil and Gas Property
3 Months Ended
Oct. 31, 2025
Notes to Financial Statements  
Oil and Gas, Property and Equipment [Text Block]

NOTE 4 OIL AND GAS PROPERTY

 

On April 11, 2025, the Company and Lost Creek Acquisitions, LLC entered into a Purchase Agreement, whereby the Company purchased the rights to the Phase I Wells. The purchase price was $25,000 cash and 4,000,000 shares of common Stock. The shares were valued at $0.0668, the closing stock price on April 11, 2025, for a value of $267,200. As of July 31, 2025, the shares were disclosed as common stock to be issued. The shares were issued on September 15, 2025. The total purchase price was $292,200, which was capitalized to the balance sheet.

 

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. The carrying value of the impaired properties was reduced to $151,456 representing their estimated fair value as of the measurement date.