9. REDEEMABLE NON-CONTROLLING INTERESTS

The following table outlines the movement in redeemable non-controlling interests in the years presented.

		2022			2021
Balance as at January 1	$	46,552,839		$	-
Redeemable non-controlling interests issued		154,456,707			55,138,395
Net loss and comprehensive loss attributed		10,598,514			12,851,005
Revaluation to redemption value, net		23,197,507			240,903
Distributions		(3,340,254	)		(6,388,870	)
Settlement		(123,881,576	)		(15,288,594	)
Balance as at December 31	$	107,583,737		$	46,552,839

The Company has established the Development Partnerships as a mechanism to partially finance its development projects and activities. The redeemable non-controlling interest reflects the development partnership units that are not held by the Company either directly or indirectly. These external units consist of: (a) the Flat Payout Units, and (b) the IRR Payout Units.

The Flat Payout Units and the IRR Payout Units are entitled to 75% of the distributions of the related development partnership, until the "Base Payout" amount is received. The Base Payout is:

(a) For the Flat Payout Units - an amount equal to the invested capital.

(b) For the IRR Payout Units - an amount equal to the greater of (i) the invested capital plus a 15% annualized return and (ii) 120% of the initial investment.

After the Base Payout has been achieved, the participation in subsequent distribution will reduce to 20% of the Flat Payout Units held and 6% of the IRR Payout Units held. At that time, the unit holders also have the right to redeem (the "Put Right") the units for either (i) Class B non-voting units of Origination (which are exchangeable on a one-for-one basis for SVS shares of the Company), or (ii) cash, subject to certain restrictions, and with the number of shares or cash to be distributed to be calculated based on future net present values of the oil and gas reserves of the related development partnership.

Development Partnership 1 ("DP1")

During the first quarter of 2021, the Company formed DP1 with 13 external limited partners and Origination as a limited partner and the general partner. The intention of the DP1 was to partially finance the drilling and completion of five wells, with the external partners funding approximately 60% and the Company funding 40%. The Company raised $13,140,240 from external limited partners of which $1,366,709 was raised from officers and directors of the Company at that time. Investors participated $3,252,132 in Flat Payout Units and $9,888,108 in IRR Payout Units.

During the year ended December 31, 2022, the Company distributed $nil to external partners (2021 - $1,853,127).

On October 7, 2021, on completion of the DP1 program, the Company liquidated DP1 and redeemed the associated redeemable non-controlling interests with a redemption value of $15,288,594. As part of this redemption, DP1 units with a redemption value of $1,192,893 were exchanged for 339,372 Class B non-voting units of Origination via the Put Right.

As at December 31, 2022 both the redemption value and carrying value of the Redeemable NCI in DP1 was $nil (December 31, 2021 - $15,288,594).

Development Partnership 2 ("DP2")

During the third quarter of 2021, the Company formed DP2 with 25 external limited partners and Origination as a limited partner and the general partner. The intention of the DP2 was to partially finance the drilling and completion of five wells, with the external partners funding approximately 60% and the Company funding 40%. The Company raised $20,815,329 from external limited partners of which $1,724,967 was raised from officers and directors of the Company at that time. Investors participated $7,390,362 in Flat Payout Units and $13,424,967 in IRR Payout Units.

During the year ended December 31, 2021, the Company distributed $4,535,743 to external partners.

In January 2022, on completion of the DP2 program, the Company liquidated DP2 and redeemed the associated redeemable non-controlling interests with a redemption value of $23,511,818. As part of this redemption, DP2 units with a redemption value of (a) $3,159,695 were exchanged for 826,063 Class B non-voting units of Origination via the Put Right, and (b) $84,300 retained the ongoing rights of working interest in the DP2 wells and as a result, the fair value of the units was settled with a disposition from PP&E, reflecting the disposition of the associated working interest.

As at December 31, 2022 both the redemption value and carrying value of the Redeemable NCI in DP2 was $nil (December 31, 2021 - redemption value of $23,511,818 and carrying value of $25,370,013, respectively).

Development Partnership 3 ("DP3")

During the fourth quarter of 2021, the Company formed DP3 with 23 external limited partners and Origination as a limited partner and the general partner. The intention of the DP3 was to partially finance the drilling and completion of five wells, with the external partners funding approximately 60% and the Company funding 40%. The Company raised $21,182,826 from external limited partners of which $4,032,672 was raised from officers and directors of the Company. Investors participated $10,413,322 in Flat Payout Units and $10,769,504 in IRR Payout Units.

During the year ended December 31, 2022, the Company distributed $nil to external partners (2021 - $nil).

In April 2022, on completion of the DP3 program, the Company liquidated DP3 and redeemed the associated redeemable non-controlling interests with a redemption value of $30,171,337. As part of this redemption, DP3 units with a redemption value of $5,102,229 were exchanged for 894,929 Class B non-voting units of Origination via the Put Right.

As at December 31, 2022 both the redemption value and carrying value of the Redeemable NCI in DP3 was $nil (December 31, 2021 - $21,182,826).

Development Partnership 4 ("DP4")

During the first quarter of 2022, the Company formed DP4 with 29 external limited partners and Origination as a limited partner and the general partner. The intention of DP4 was to partially finance the drilling and completion of five wells, with the external partners funding approximately 60% and the Company funding 40%. The Company has raised $25,225,079 from external limited partners of which $1,484,256 was raised from officers and directors of the Company. Investors participated $11,638,948 in Flat Payout Units and $13,586,130 in IRR Payout Units.

During the year ended December 31, 2022, the Company distributed $2,747,270 to external partners.

In July 2022, on completion of the DP4 program, the Company liquidated DP4 and redeemed the associated redeemable non-controlling interests with a redemption value of $31,734,290. As part of this redemption, DP4 units with a redemption value of (a) $4,135,797 were exchanged for 706,975 Class B non-voting units of Origination via the Put Right, and (b) $291,599 retained the ongoing rights of working interest in the DP4 wells and as a result, the fair value of the units was settled with a disposition from PP&E, reflecting the disposition of the associated working interest.

As at December 31, 2022 both the redemption value and carrying value of the Redeemable NCI in DP4 was $nil (December 31, 2021 - $nil).

Development Partnership Red Dawn 1 ("Red Dawn 1")

During the first quarter of 2022, the Company formed Red Dawn 1 with 37 external limited partners and Origination as a limited partner and the general partner. The intention of Red Dawn 1 is to partially finance the drilling and completion of five wells, with the external partners funding approximately 60% and the Company funding 40%. The Company has raised $30,269,097 from external limited partners of which $773,836 was raised from officers and directors of the Company. Investors participated $16,692,200 in Flat Payout Units and $13,576,895 in IRR Payout Units.

During the year ended December 31, 2022, the Company distributed $nil to external partners.

In November 2022, on completion of the Red Dawn 1 program, the Company liquidated Red Dawn 1 and redeemed the associated redeemable non-controlling interests with a redemption value of $38,464,144. As part of this redemption, Red Dawn 1 units with a redemption value of (a) $3,184,247 were exchanged for 617,103 Class B non-voting units of Origination via the Put Right, and (b) $166,684 retained the ongoing rights of working interest in the Red Dawn 1 wells and as a result, the fair value of the units was settled with a disposition from PP&E, reflecting the disposition of the associated working interest.

As at December 31, 2022 both the redemption value and carrying value of the Redeemable NCI in Red Dawn 1 was $nil (December 31, 2021 - $nil).

Development Partnership 5 ("DP5")

During the second quarter of 2022, the Company formed DP5 with 25 external limited partners and Origination as a limited partner and the general partner. The intention of DP5 is to partially finance the drilling and completion of six wells, with the external partners funding approximately 60% and the Company funding 40%. The Company has raised $30,171,345 from external limited partners of which $4,308,462 was raised from officers and directors of the Company. Investors participated $19,657,921 in Flat Payout Units and $10,513,413 in IRR Payout Units.

During the year ended December 31, 2022, the Company distributed $450,668 to external partners.

As at December 31, 2022 both the redemption value and carrying value of the Redeemable NCI in DP5 was $36,354,869 (December 31, 2021 - $nil).

Development Partnership 6 ("DP6")

During the third quarter of 2022, the Company formed DP6 with 38 external limited partners and Origination as a limited partner and the general partner. The intention of DP6 is to partially finance the drilling and completion of ten wells, with the external partners funding approximately 60% and the Company funding 40%. The Company has raised $34,157,892 from external limited partners of which $2,215,096 was raised from officers and directors of the Company. Investors participated $21,176,246 in Flat Payout Units and $12,981,645 in IRR Payout Units.

During the year ended December 31, 2022, the Company distributed $142,316 to external partners.

As at December 31, 2022 both the redemption value and carrying value of the Redeemable NCI in DP6 was $36,595,572 (December 31, 2021 - $nil).

Development Partnership Red Dawn II ("Red Dawn 2")

During the fourth quarter of 2022, the Company formed Red Dawn 2 with 36 external limited partners and Origination as a limited partner and the general partner. The intention of Red Dawn 2 is to partially finance the drilling and completion of five wells, with the external partners funding approximately 60% and the Company funding 40%. The Company has raised $34,633,295 from external limited partners of which $872,944 was raised from officers and directors of the Company. Investors participated $20,645,955 in Flat Payout Units and $13,987,340 in IRR Payout Units.

During the year ended December 31, 2022, the Company distributed $nil to external partners.

The Red Dawn 2 program has not been completed as at December 31, 2022. As at December 31, 2022 both the redemption value and carrying value of the Redeemable NCI in Red Dawn 2 was $34,633,295 (December 31, 2021 - $nil).