Financials and MD & A outSitting on oil in storage waiting for better prices not recognized in revenue, fyi...
"The net loss for the year ended December 31, 2019 was $5,767,913 or $0.02 per share compared to $3,088,885 or $0.01 per share in the previous year.
Revenue from the sale of petroleum and natural gas is recorded on a gross basis when title passes to an external party and is recognized based on volumes delivered to customers at contractual delivery points and rates. The costs associated with the delivery, including production, transportation and production-based royalty expenses are recognized in the same period in which the related revenue is earned and recorded.
Revenue decreased slightly to $1,096,356 for the year ended December 31, 2019 from revenue of $1,154,491 during the year ended December 31, 2018. Year over year, the Company’s revenue has decreased 5%. Commodity prices fluctuated significantly in 2019 with a range of $69.40 to $103.73 per barrel. There continues to be minimal production from the Canadian oil and gas assets as the majority of these assets were disposed prior to 2016. The Company will continue to focus on its exploration program in Texas.
Production expenses for the year ended December 31, 2019 decreased significantly to $684,554 from $910,281 for the year ended December 31, 2018 on similar revenues.
General and administrative expenses (“G&A”) decreased to $941,290 during the year ended December 31, 2019 from $1,057,647 for the same period during 2018. The small decrease in the Company’s G&A is consistent of the Company’s efforts to grow the South Texas asset base. "