| PROPERTY, PLANT AND EQUIPMENT (“PP&E”) |
| 5. | PROPERTY, PLANT AND EQUIPMENT (“PP&E”) |
| ($ thousands) | |
Developed and
producing | | |
Right-of-
use assets | | |
Corporate
assets | | |
Total | |
| Cost | |
| | |
| | |
| | |
| |
| Balance as at January 1, 2024 | |
| 1,090,755 | | |
| 13,758 | | |
| 618 | | |
| 1,105,131 | |
| Additions | |
| 87,404 | | |
| 907 | | |
| - | | |
| 88,311 | |
| Acquisitions | |
| 16,873 | | |
| - | | |
| - | | |
| 16,873 | |
| Transfers of right-of-use assets | |
| 5,126 | | |
| (5,126 | ) | |
| - | | |
| - | |
| Change in decommissioning liabilities | |
| (5,774 | ) | |
| - | | |
| - | | |
| (5,774 | ) |
| Balance as at December 31, 2024 | |
| 1,194,384 | | |
| 9,539 | | |
| 618 | | |
| 1,204,541 | |
| Additions | |
| 114,057 | | |
| 559 | | |
| 509 | | |
| 115,125 | |
| Transfers of right-of-use assets | |
| 3,497 | | |
| (3,497 | ) | |
| - | | |
| - | |
| Remeasurement of right-of-use assets | |
| - | | |
| (2,619 | ) | |
| - | | |
| (2,619 | ) |
| Change in decommissioning liabilities | |
| 1,779 | | |
| - | | |
| - | | |
| 1,779 | |
| Balance as at December 31, 2025 | |
| 1,313,717 | | |
| 3,982 | | |
| 1,127 | | |
| 1,318,826 | |
| Accumulated Depletion, Depreciation and Amortization | |
| | | |
| | | |
| | | |
| | |
| Balance as at January 1, 2024 | |
| 163,152 | | |
| 243 | | |
| 362 | | |
| 163,757 | |
| Depletion and depreciation (1) | |
| 80,342 | | |
| 303 | | |
| 80 | | |
| 80,725 | |
| Balance as at December 31, 2024 | |
| 243,494 | | |
| 546 | | |
| 442 | | |
| 244,482 | |
| Depletion and depreciation (1) | |
| 83,651 | | |
| 370 | | |
| 229 | | |
| 84,250 | |
| Balance as at December 31, 2025 | |
| 327,145 | | |
| 916 | | |
| 671 | | |
| 328,732 | |
| Net Book Value | |
| | | |
| | | |
| | | |
| | |
| Balance at December 31, 2024 | |
$ | 950,890 | | |
$ | 8,993 | | |
$ | 176 | | |
$ | 960,059 | |
| Balance at December 31, 2025 | |
$ | 986,572 | | |
$ | 3,066 | | |
$ | 456 | | |
$ | 990,094 | |
| (1) | As at December 31, 2025 $1.0 million of depletion and depreciation was capitalized to inventory (December 31, 2024- $0.3 million). |
At December 31, 2025, Greenfire evaluated its
PP&E for indicators of impairment and determined that no indicators were present.
On February 22, 2024, Greenfire acquired natural
gas assets in the Hangingstone area for consideration of $2.5 million. This acquisition resulted in an increase in PP&E of $12.7 million,
including $10.2 million of future decommissioning obligations. On April 19, 2024, Greenfire acquired heavy oil assets in the Athabasca
region of Northern Alberta for consideration of $1.9 million. This acquisition resulted in an increase in PP&E of $4.2 million, including
$2.3 million of future decommissioning obligations. The Company applied the optional IFRS 3 concentration test to these acquisitions which
resulted in the acquired assets being accounted for as asset acquisitions.
|