REVENUE FROM CONTRACTS WITH CUSTOMERS |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 4 – REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of Revenue from Contracts with Customers
The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. Revenue is derived from the sale of crude oil, and control transfers to the customer at the time of delivery. Revenue is measured based on the consideration specified in the contract, which may include adjustments for market differentials and transportation-related charges. The Company sells its crude oil to a single customer (Cenovus Energy Inc.), and payment is typically received in the month following delivery.
Revenue for the three and nine months ended July 31, 2026 was generated from oil sales produced from the Company’s Canadian properties. The following table presents revenue disaggregated by product type for the periods presented:
There were no contract assets, contract liabilities, or remaining performance obligations as of July 31, 2026 or October 31, 2025.
Concentrations
The Company sells the crude oil produced from its Canadian operations to a single purchaser, which accounted for all the Company’s revenue for the three and nine months ended July 31, 2026. The Company believes the crude oil it produces is marketable to other purchasers in the region and accordingly does not expect the loss of this customer to have a severe near-term impact on its ability to sell its production, although a transition to an alternative purchaser could affect the timing of sales and realized pricing.
All the Company’s revenue is derived from oil produced in Canada. Changes in regional market conditions, commodity prices, regulatory requirements, or tariffs affecting Canadian crude oil could materially impact future revenues.
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