Overview

Norris Industries, Inc. (the “Company”) is an oil and natural gas company that focuses on the acquisition, development, and exploration of crude oil and natural gas properties in Texas. As of March 1, 2024, the Company’s total net reserves were 29 Mbbl in oil and 150 MMcf in natural gas, down from the prior year due to well workover issues.

The Company’s long-term objective is to increase shareholder value by growing reserves, production, and cash flow. To achieve this, the Company plans to focus on existing fields, selectively acquire larger-reserve oil and gas properties, and implement Enhanced Oil Recovery (EOR) methods. The Company may also consider acquiring oilfield services companies and other non-oilfield companies to diversify its growth strategy.

However, the Company’s operations have been adversely impacted by the COVID-19 pandemic, the Russia-Ukraine conflict, and the Middle East tensions. These events have led to volatility in energy prices, supply chain disruptions, and increased costs, which have affected the Company’s financial condition and results of operations.

Our Business Strategy

The Company’s key business strategies include:

1. Developing and growing its hydrocarbon resource acreage positions using outside development expertise.
2. Leveraging management’s expertise and applying the latest EOR technologies to economically develop its existing property portfolio.
3. Seeking acquisition opportunities of oilfield services companies and other non-oilfield companies to implement a diversified growth strategy.

Our Competitive Strengths

The Company believes it has several competitive strengths, including:

1. A simple capital structure and de-risked inventory of quality locations with upside potential.
2. A moderate risk exploration practice focused on shallow well exploration (sub 5,000 feet) that is less expensive and has lower risk factors.
3. An “under the radar” asset base of local West Texas E&P leases with sub-300 bopd wells that have large hydrocarbon reserves.

Technologies

The Company focuses on core basic field EOR management practices and contracts outside experts to provide a better understanding of complex mineralogy in shale reservoirs. This technology helps the Company make more informed drilling decisions.

Sales Strategy

The Company’s sales strategy is to produce less when the sales price is lower and produce more when the sales price is higher, aiming to maintain the lowest production cost possible. The Company has established production agreements with BML, Lion Oil, and WTG Jameson for the sale of its crude oil and natural gas.

Operational Plans

The Company’s operational plans include:

1. Selectively acquiring mature smaller oil fields with potential for implementing EOR processes.
2. Developing strategic partnerships with existing operators to share production increases from EOR implementation.
3. Limiting its operating budget for current wells to basic maintenance and reviewing other energy-related business opportunities to diversify and increase its sales revenues and income.

Results of Operations

Comparison of the Three Months Ended August 31, 2024, with the Three Months Ended August 31, 2023:

Metric	Q3 2024	Q3 2023	Change
Revenues	$77,007	$82,606	-6.8%
Operating Expenses	$160,381	$174,936	-8.3%
Net Loss	$117,856	$124,010	-5.0%

Comparison of the Six Months Ended August 31, 2024, with the Six Months Ended August 31, 2023:

Metric	H1 2024	H1 2023	Change
Revenues	$177,274	$163,958	+8.1%
Operating Expenses	$395,781	$406,875	-2.7%
Net Loss	$286,893	$305,348	-6.0%

Liquidity and Capital Resources

As of August 31, 2024, the Company had $71,739 in cash and $400,000 in available credit on its existing line of credit with JBB, which has been extended to September 30, 2026. The Company will require additional financing to support its operations and acquisition program, and it does not have any committed sources of financing at this time. The Company’s majority shareholder has provided funding in the past and indicated a willingness to selectively review and determine additional funding for certain low-risk initiatives, but is not legally obligated to do so.

The Company’s ability to continue as a going concern is dependent on its ability to increase operating revenues or obtain funding from other investors or lenders. There is no assurance that the Company will be able to do so, and if it cannot, investors may suffer a loss in the value of their investment.