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Note 4 - Oil and Gas Property
12 Months Ended
Jul. 31, 2026
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 years ended July 31, 2026 and 2025, the Company evaluated its oil and gas properties for impairment in accordance with ASC 360, Property, Plant, and Equipment. Based on updated reserve estimates and management's assessment of the recoverability of the properties, the Company recognized impairment losses of $151,456 and $140,744, respectively, reducing the carrying value of its oil and gas properties to $0 as of July 31, 2026.

 

Although the properties continue to produce oil and natural gas and generate revenue, management determined that the properties had no remaining carrying value based on its impairment assessment. The Company expects the properties to continue generating revenue from ongoing production activities. Any future revenues and related operating expenses will be recognized in the periods in which they are earned or incurred.

 

On June 2, 2026, the Company entered into a Memorandum of Understanding with R.A. Miller Energy, Inc. ("RAM") regarding the acquisition of a 5.4165 net mineral acre leasehold interest located in Sections 27 and 34, Township 2 North, Range 3 West, and Section 3, Township 1 North, Range 3 West, Garvin County, Oklahoma, associated with the proposed Bosworth 0203 1H-27X well.

 

Pursuant to the agreement, the Company agreed to acquire the leasehold interest for total consideration of $21,666, consisting of (i) $10,833 in cash payable on or before July 31, 2026, and (ii) $10,833 payable in 216,660 shares of the Company’s common stock. The shares were valued at $18,394 based on the closing market price of $0.0849 per share on June 2, 2026. Of this amount, $10,833 was recorded as a prepaid acquisition cost, and the remaining $7,561 was recognized as an expense. The acquisition of the leasehold interest has been delayed pending verification of certain matters necessary to complete the transaction. As of the date of this report, the $10,833 cash payment due on July 31, 2026, has not been made, and the transaction remains pending. Given the uncertainty surrounding the completion of the acquisition, the Company has not recorded a liability for the unpaid cash consideration pending further evaluation of the status and enforceability of the agreement.