Financial Analysis

Note 6 Commitments and Contingencies Office Lease In September 2018, the Company moved to the offices of International Western Oil (IWO) in Weatherford, TX that is being rented on a month-to-month sublease basis at rate of $ 950 per month from IWO. During the three months ended May 31, 2026, the Company incurred $ 2,850 rent expense under this lease that is included in lease operating expenses on the condensed consolidated statements of operations. Leasehold Drilling Commitments The Companys oil and gas leasehold acreage is subject to expiration of leases if the Company does not drill and hold such acreage by production or otherwise exercises options to extend such leases, if available, in exchange for payment of additional cash consideration. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following table disaggregates revenue by significant product types for the three months ended May 31, 2026 and 2025: Schedule of Disaggregation of Revenue Three Months Ended May 31, 2026 2025 Oil sales $ 80,842 $ 71,507 Natural gas sales 9,516 21,263 Total $ 90,358 $ 92,770 Revenue from contracts with customers $ 90,358 $ 92,770

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Recently Issued Financial Accounting Standards From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Companys financial position, results of operations or cash flows upon adoption. …

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Note 5 Related Party Transactions Promissory Note to JBB On December 28, 2017, the Company borrowed $ 1,550,000 from JBB to complete the purchases of a series of oil and gas leases (the Loan Note). The loan has an interest rate of 3 % per annum, a maturity date of December 28, 2018 and is secured by all assets of the Company. The loan is convertible to the Companys common stock at the conversion rate of $ 0.20 per share. On June 26, 2018, the Company and JBB entered into a modification of the existing Loan Note, to add provisions to permit the Company to obtain additional advances under the Loan Note up to a maximum of $ 1,000,000 . The Company may request an advance in increments of $ 100,000 no more frequently than every 30 days, provided that (i) it provides a description of the use of proceeds for the advance reasonably acceptable to JBB, and (ii) the Company is not otherwise in default of the Loan Note. The original loan amount and the advances are secured by all the assets of the Company and are convertible into common stock of the Company at the rate of $ 0.20 per common share, subject to adjustment for any reverse and forward stock splits. The Loan Note may be repaid at any time, without penalty, however, any advance that is repaid before maturity may not be re-borrowed as a further advance. On May 21, 2019, the Company entered into an extension agreement with JBB to extend the maturity of its outstanding Loan Note to September 30, 2020 . On June 13, 2019, JBB lent th …

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Note 2 Revenues from Contracts with Customers Disaggregation of Revenues from Contracts with Customers The following table disaggregates revenue by significant product types for the three months ended May 31, 2026 and 2025: Schedule of Disaggregation of Revenue Three Months Ended May 31, 2026 2025 Oil sales $ 80,842 $ 71,507 Natural gas sales 9,516 21,263 Total $ 90,358 $ 92,770 Revenue from contracts with customers $ 90,358 $ 92,770 There were no significant contract liabilities or transaction price allocations to any remaining performance obligations as of May 31, 2026 and February 28, 2026. …

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Note 7 Segment Reporting The Company has one reportable segment, which encompasses the ownership and investment in oil and natural gas properties in the state of Texas. The segments revenues are derived from the Companys interests in the sales of crude oil and natural gas. The Companys chief executive officer function as the chief operating decision maker (CODM) and manage the Companys business activities as a single operating segment. The accounting policies of the one reportable segment are identical to those described for the consolidated Company. The CODM uses condensed consolidated net income (loss), as reported in the unaudited condensed consolidated statement of operations, to measure segment profitability, assess performance, and manage strategic capital resource allocations. The measure of segment assets is reported as Total assets on the unaudited condensed consolidated balance sheets. The significant expense categories regularly provided to and reviewed by the CODM are those presented in the unaudited condensed consolidated statements of operations . …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 8 - Subsequent Events In preparing these condensed consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date these condensed consolidated financial statements were issued and the following events are reported. On July 1 st , 2026, the company made and received a draw request for $ 100,000 against its line of credit. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing