OVINTIV OIL AND NATURAL GAS PROPERTIES	6 Months Ended
Jun. 30, 2021
Ovintiv Oil And Natural Gas Properties
OVINTIV OIL AND NATURAL GAS PROPERTIES	5.       OVINTIV OIL AND NATURAL GAS PROPERTIES On March 3, 2020 the Company entered into a Purchase and Sale Agreement (“the Ovintiv Agreement”) with Ovintiv USA, Inc. and several related companies to purchase certain oil and natural gas properties in Montana and North Dakota. The purchase price was $8,500,000, subject to adjustments with an effective date of January 1, 2020 and a closing date of April 30, 2020. The Company made an $850,000 deposit relating to the purchase. Due to the COVID-19 pandemic and governmental state of emergency orders related thereto, the Company was unable to meet with and obtain financing to complete the purchase from its lenders. The Ovintiv Agreement was terminated and the parties agreed to settle with the Company receiving a $50,000 return of its deposit. The Company estimated a loss on the deposit of $725,000 in the quarter ending June 30, 2020 which is included in general and administrative expense, with the remainder recorded in the quarter ending September 30, 2020. No amounts were outstanding as of December 31, 2020.

OVINTIV OIL AND NATURAL GAS PROPERTIES

6 Months Ended

Jun. 30, 2021

Ovintiv Oil And Natural Gas Properties

5.       OVINTIV OIL AND NATURAL GAS PROPERTIES

On March 3, 2020 the Company entered into a Purchase and Sale Agreement (“the Ovintiv Agreement”) with Ovintiv USA, Inc. and several related companies to purchase certain oil and natural gas properties in Montana and North Dakota. The purchase price was $8,500,000, subject to adjustments with an effective date of January 1, 2020 and a closing date of April 30, 2020.

The Company made an $850,000 deposit relating to the purchase. Due to the COVID-19 pandemic and governmental state of emergency orders related thereto, the Company was unable to meet with and obtain financing to complete the purchase from its lenders. The Ovintiv Agreement was terminated and the parties agreed to settle with the Company receiving a $50,000 return of its deposit. The Company estimated a loss on the deposit of $725,000 in the quarter ending June 30, 2020 which is included in general and administrative expense, with the remainder recorded in the quarter ending September 30, 2020. No amounts were outstanding as of December 31, 2020.