NOTE 5 – EXPLORATION AND EVALUATION (“E&E”) ASSETS
| Canadian Oil | United States | ||||||||
| and Gas | Oil and Gas | ||||||||
| Properties | Properties | Total | |||||||
| $ | $ | $ | |||||||
| Cost: | |||||||||
| Balance at January 1, 2016 | 281 | 18,982 | 19,263 | ||||||
| Additions | 2 | - | 2 | ||||||
| Change in decommissioning provision | 13 | - | 13 | ||||||
| Disposals | - | (772 | ) | (772 | ) | ||||
| Foreign currency translation and other | - | (768 | ) | (768 | ) | ||||
| Balance at December 31, 2016 | 296 | 17,442 | 17,738 | ||||||
| Additions | 4 | 3 | 7 | ||||||
| Change in decommissioning provision | 56 | - | 56 | ||||||
| Disposals | - | - | - | ||||||
| Foreign currency translation and other | - | (1,174 | ) | (1,174 | ) | ||||
| Balance at December 31, 2017 | 356 | 16,271 | 16,627 |
| Canadian Oil | United States | ||||||||
| and Gas | Oil and Gas | ||||||||
| Properties | Properties | Total | |||||||
| $ | $ | $ | |||||||
| Accumulated impairment losses: | |||||||||
| Balance at January 1, 2016 | - | (16,041 | ) | (16,041 | ) | ||||
| Impairment losses | - | (1,790 | ) | (1,790 | ) | ||||
| Disposals | - | 513 | 513 | ||||||
| Foreign currency translation and other | - | 550 | 550 | ||||||
| Balance at December 31, 2016 | - | (16,768 | ) | (16,768 | ) | ||||
| Impairment losses (Note 7) | (350 | ) | (621 | ) | (971 | ) | |||
| Disposals | - | - | - | ||||||
| Foreign currency translation and other | - | 1,120 | 1,120 | ||||||
| Balance at December 31, 2017 | (350 | ) | (16,269 | ) | (16,619 | ) |
| Canadian Oil | United States | ||||||||
| and Gas | Oil and Gas | ||||||||
| Properties | Properties | Total | |||||||
| $ | $ | $ | |||||||
| Carrying amounts: | |||||||||
| At December 31, 2016 | 296 | 674 | 970 | ||||||
| At December 31, 2017 | 6 | 2 | 8 |
Exploration and evaluation (“E&E”) assets consist of the Company’s exploration projects which are pending the determination of proven reserves.
United States Exploration and Evaluation Properties
As at December 31, 2017, the Company holds oil and gas leases in the Piceance, Paradox and Uinta Basins in the US Rocky Mountains, of which a portion was classified as E&E assets.
The E&E asset impairment is $621,000 and $1,790,000 for the year ended December 31, 2017 and December 31, 2016, respectively. The impairment was recognized upon a review of each exploration license or field, carried out, at least annually, to confirm whether the Company intends further appraisal activity or to otherwise extract value from the property.