PetroGas Reports Decreased Net Losses and Increased Liabilities for December 2024

PetroGas Company reported a net loss of $16,080 for the three months ended December 31, 2024, a decrease from a net loss of $17,880 during the same period in 2023. For the nine months ending December 31, 2024, the company recorded a net loss of $56,001, down from $61,695 in the prior year. The reduction in losses is attributed to decreased operating expenses, which fell to $3,500 from $5,300 in the quarterly comparison, and to a decline in interest expenses over the nine-month period. The company has not generated significant revenue since its inception, maintaining an accumulated deficit of $142,348,174 as of December 31, 2024.

In terms of financial position, PetroGas reported total current liabilities of $771,649 as of December 31, 2024, an increase from $715,648 at the end of the previous fiscal period. This rise is primarily due to increased advances from related parties and accrued interest. The company continues to face a working capital deficiency, which has grown from $715,648 to $771,649. The balance sheet reflects a total shareholders' deficit of $855,229, compared to $799,228 in the prior period.

Strategically, PetroGas has been active in expanding its oil and gas lease portfolio. In February 2024, the company acquired an oil and gas lease in Tarrant County, Texas, covering 12.1 acres. This acquisition is part of a broader strategy to explore and drill in high-profile pay zones, with plans to raise capital through private placements to fund further acquisitions and drilling activities. The company holds a 94% interest in Seabourn Oil Company, LLC, which may enhance its operational capabilities.

Operationally, PetroGas has not reported significant changes in customer counts or user statistics, as it has not generated substantial revenue from its operations. The company continues to seek opportunities to acquire both producing and non-producing leases, aiming to capitalize on the current market conditions that may allow for the acquisition of distressed assets at favorable prices. The management has indicated that they are planning to drill new wells and explore deeper rights to potentially increase production output.

Looking ahead, PetroGas acknowledges the need for additional working capital to sustain operations and service its debt, raising concerns about its ability to continue as a going concern. The management has outlined strategies that may include equity funding and various forms of financing to address operational shortfalls. However, the company has not provided specific guidance on expected revenue generation or profitability timelines, emphasizing the inherent uncertainties in the oil and gas market.