PETROGAS CO MANAGEMENT REPORT AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS (Form 10-K)

This Annual Report on Form 10-K contains forward-looking statements within the meaning of the federal securities laws. These include statements about our expectations, beliefs, intentions or strategies for the future, which we indicate by words or phrases such as “anticipate”, “expect”, “intend”, ” plan”, “will”, “we believe”, “management believes” and similar language. Except for historical information contained herein, matters addressed in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Report on Form 10-K are forward-looking statements that involve risks and uncertainties. The factors listed in the section titled “Risk Factors”, together with any caveats in this report on Form 10-K, provide examples of the risks, uncertainties and events that may cause our actual results differ materially from those projected. Except as required by law, we undertake no obligation to update forward-looking statements to reflect events after the date of this report on Form 10-K.


Overview


We expect this discussion to provide information that will help to understand our financial statements, changes in certain key elements of these financial statements and the main factors that explain these changes, as well as how certain accounting principles affect our financial statements.

Our company has posted net losses to date and has not generated operating income, we will need additional working capital to repay debt and for ongoing operations, which raises substantial doubt about our ability to continue our business. Our company’s management has developed a strategy to address operational gaps which may include equity financing, short-term or long-term financing, or debt financing, to enable our company to achieve profitable operations. If we are unable to generate positive cash flow or obtain additional financing, if necessary, we may have to modify, delay or abandon all or part of our business and expansion plans.


Corporate History


Closed fiscal years March 31, 2022 and 2021

The following discussion and analysis should be read in conjunction with our company’s audited financial statements for the years ended March 31, 2022
and 2021 and the notes thereto which are included in this annual report.

Results of operations for the year ended March 31, 2022 and March 31, 2021


                          Year             Year
                         Ended            Ended
                       March 31,        March 31,
                          2022             2021           Changes

Operating Expenses   $  140,034,275     $   26,713     $  140,007,562
Other Expenses       $       57,040     $   89,828     $      (32,788 )
Net Loss             $ (140,091,315 )   $ (116,541 )   $ (139,974,774 )





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We did not recognize any revenue during the year ended March 31, 2022 and 2021.

Our net loss for the year ended March 31, 2022 increased to $140,091,315 of
$116,541 for the year ended March 31, 2021 due to increased operating costs. During the year ended March 31, 2022our company has incurred stock-based compensation of $140,000,000 for the issuance of common shares to our director of management services.


 Plan of Operation


Management is considering plans to reactivate its inactive wells through a lease rework program. Additional rights may be leased by the mine owner to deeper areas near 5,000 feet and below. However, these plans are subject to the fundraising of $500,000 to pay for these redesign plans and an analysis of potential revenues based on projected future oil prices.

Our company is actively seeking to acquire productive and non-productive leases that will allow us to explore and drill in prime paying areas.

We intend to raise low-cost capital from private placements so that we can acquire many additional leases and begin drilling and take advantage of the inevitable oil price hike ahead.

In the current climate, our company believes that there are a very large number of oil and gas leases in difficulty due to lower gas prices and that we can strategically position our company to acquire as many of these leases as possible at a below market price. value, thereby creating shareholder value.

On the Burns and Rogers leases, we intend to rework all current wells and return them to production once oil prices move into an appropriate range. We are planning an exploration strategy to drill new wells on the current concessions, as well as to acquire deeper rights to drill some of the wells to greater depths. We anticipate that reservoirs at these depths could produce very high daily oil production.

Cash and capital resources


Working Capital



                                 As of          As of
                               March 31,      March 31,
                                  2022           2021         Changes

Current Assets                 $        -     $        -     $       -
Current Liabilities            $  541,968     $  451,653     $  90,315
Working Capital (Deficiency)   $ (541,968 )   $ (451,653 )   $ (90,315 )




 Cash Flows



                                               Year           Year
                                              Ended          Ended
                                            March 31,      March 31,
                                               2022           2021        Changes

Net cash used in operating activities ($32,533) ($28,634) ($3,899)
Net cash provided by financing activities $32,533 $28,634 $3,899
Net changes in cash and cash equivalents – $ – $ – $




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From March 31, 2022we had a negative working capital of $541,968compared to a negative working capital of $451,653 of the March 31, 2021. The increase in the working capital deficit is attributed to the increase in the amount due to the director of the Company and accrued interest.

Cash flow from operating activities

For the year ended March 31, 2022We used $32,533 cash for operations mainly due to the net loss of $140,091,315compensated by stock-based compensation of $140,000,000 and the net changes in operating assets and liabilities of $58,782.

For the year ended March 31, 2021We used $28,634 cash for operations mainly due to the net loss of $116,541offset by the amortization of the discount on the debt of $31,558 and the net changes in operating assets and liabilities of
$56,349.

Cash flow from investing activities

The Company did not use any funds for investing activities during the year ended
March 31, 2022 and 2021.

Cash flow from financing activities

For the year ended March 31, 2022 and 2021 we had $32,533 and $28,634 in net cash provided by financing activities, respectively.

During the year ended March 31, 2022we received a promotion from the director of the company of $32,533.

During the year ended March 31, 2021we received a promotion from the director of the company of $6,500 and proceeds from the issuance of convertible bonds of
$22,134.

Off-balance sheet arrangements

From March 31, 2022the Company had no off-balance sheet arrangements.

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