OIL AND GAS OPERATIONS
A. LAND During the 2019/2020 y ear MSGC entered into three new agreements:
1. On August 28, 2019 there was a public offering of petroleum and natural gas mineral rights on Buffalo Lake Metis Settlement. As a result, a Buffalo Lake Metis Settlement and MSGC entered into a Development Agreement with Summerland Energy Inc. covering 5 sections of land. 2. On February 5, 2020 there was a public offering of oil sands mineral rights on Peavine Metis Settlement. As a result, Peavine Metis Settlement and MSGC reached an agreement with Woodcote Oil Corp. covering 3 sections of land. 3. On February 21, 2020 Tirmoil Energy Ltd. acquired the oil sands mineral rights on 60 sections of land in Peavine Metis Settlement by direct purchase from the Crown. MSGC has entered into a Development Agreement with Tirmoil Energy Ltd. to receive a GORR on production from these lands. In all the above transactions, MSGC and the Settlement elected to not acquire any working interest and in its place negotiate for higher GORR.
B. RESERVES & PRODUCTION, EQUITY 1. Reserves & Production
As of March 31, 2020, virtually all the wells located on Settlements’ lands were in some stage of abandonment and reclamation as the losses incurred in previous years made them uneconomical to continue producing. Facility decommissioning, suspension / abandonment / reclamation of wells took place on most of the Settlements. As a result, no future value has been assigned to MSGC oil and gas participation / overriding royalty interests. Abandonment and reclamation work will continue during fiscal 2020/21.
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