From Sedar...
During the year ended April 30, 2013, the Company signed a farm-in agreement with Home Quarter Resources Ltd. (“Home Quarter”), acquiring a 100% working interest in two sections in southeastern Saskatchewan. The Company has to complete the following commitment to earn 100% of the Farmor’s Pre-Farmout working interests: Complete a seismic program on or before October 30, 2012 (completed); and Drill a test well at a location of the Farmee’s choice on the Farmout Lands on or before October 31, 2014 On November 20, 2012, the Company made a cash payment of $15,000 to Home Quarter in return for an extension of the deadline for completion of drilling of the test well from January 25, 2013 to July 31, 2013. On May 3, 2013, the Company paid an additional cash payment of $15,000 to extend the deadline to December 31, 2013. In November 2013, the Company made a third payment of $15,000 extending the deadline to October 31, 2014. During the year ended April 30, 2013, the Company signed a farm-out and royalty agreement with ARC Resources Ltd. (“ARC”), on its 100% controlled J10 property at Bromhead, Saskatchewan. By paying 100% of the drilling and completion costs, ARC earned a 100% before payout interest in the Test Well Spacing Unit to the base of the lowest formation penetrated, subject to a 10% gross overriding royalty (the “GOR”) in favour of Petro One. The GOR may be converted into a 30% working interest at the option of Petro One within 30 days after receiving notice of Payout. Petro One has not yet received notice of Payout. 7. PETROLEUM AND NATURAL GAS INTERESTS (Continued) Having drilled the Test Well to the contract depth, ARC had 90 days from the rig release date to elect to drill a second well. As of April 30, 2013 ARC elected not to drill the second well. ARC has indicated its intention to drill an additional well in the Test Well Spacing Unit, but there can be no assurance that it will do so. On May 21, 2013, the Company completed the sale of its 100% owned J11 property in the Hardy Minton area of southeastern Saskatchewan. Under the terms of the agreement, the Company received $105,000 cash and a 7.5% GOR on all future oil production, surface to basement, for its working interest in the property. On October 31, 2013, the Company surrendered the lease of its J19 property in the Minton area of southeastern Saskatchewan and wrote off the carrying value of the property of $32,737 accordingly. On February 14, 2014, the TSX-V approved a joint venture agreement between the Company and Goldstrike to drill oil wells on leases controlled by the Company in Manitoba and Saskatchewan whereby Goldstrike has the right to earn a 50% working interest in certain of those wells subject to funding contributions and drilling results. The first well contemplated under the agreement is Well #SR1 in the South Reston property in Manitoba. In order to acquire a 50% working interest in Well #SR1, Goldstrike was required to share the cost of drilling the well on a 50/50 basis with the Company. Upon executing the joint venture agreement, Goldstrike made payments to the Company of $50,000 and $650,000 (Goldstrike’s expected share of drilling, testing and completion expenses, recorded in accounts payable). As of April 30, 2014, the Company and Goldstrike had incurred expenses of approximately $210,000 and $498,000, respectively, in drilling, testing and partially completing Well #SR1. Subsequent to April 30, 2014, the Company and Goldstrike amended the joint venture agreement in order to defer completion of Well #SR1 in favour of a lower risk, lower cost target at the Company’s J5 Milton property, which was originally designated as the third stage of the joint venture. Under the terms of the amended agreement, since the J5 Milton property’s Well 6A-15 has already been drilled and completed by the Company, Goldstrike will pay 100% of the testing and equipping costs to earn a 50% working interest in that well (see note 17 – Events After the Reporting Date). During the year ended April 30, 2014, the Company received $646,887 (2013 - $313,680) of revenues in the development stage which was credited against exploration and development costs. Note the quality of these prospects! ARC dropped the option on the remaining Bromhead lands and so far have not achieved payout on their horizontal well. (And it is highly doubtful that they ever will?) One of the other key points I got was that again POP felt so good about their Minton and Hardy properties (J11 and J19) that they managed to sell one for $105,000 and simply dropped the other one... Not too long ago someone who was posting furiously here promoting this company was stating that they still had these Minton Hardy lands? And he was alluding to how "spectacular they were because of the fabulous offsetting production LOL!Really?! They were so fabulous - the company dropped them at the first opportunity... Without the Korean money - many of the remaining dominoes would have followed suit and inexorably fallen too... "Good morning South Korea..." (Oops that really should be somewhere just a little further south and done with a Robin Williams accent...) GS
Read more at https://www.stockhouse.com/companies/bullboard/v.pop/petro-one-energy-corp#656H5HwvAMfGd3H6.99