Item 8.01 Other Events
Indemnity Agreement (the "GIA") with
SUR0038641 (the "Bonds"). The State of New Mexico Oil Conservation Division and
Petrolia, pursuant to paragraph 12 of the GIA, requesting (i) a full and
complete release of the Bonds and/or (ii) an irrevocable letter of credit in
favor of Argo for the amount of ONE HUNDRED THOUSAND
Argo purportedly chose to exercise its rights when it believed that Petrolia's
financial condition was deteriorating and/or events were occurring that would
have adversely impacted Argo's risk.
requesting injunctive relief and a declaratory judgment against Petrolia stating
that the Company had failed to comply with certain obligations under the GIA.
This case was assigned to the 11th
Cause No. 201771934.
for the principal amount of
attorneys' fees in the amount of
mutually satisfactory resolution of this matter with Argo.
As a result of negations between the companies, Petrolia and Argo reached a
mutually satisfactory settlement and signed a Settlement Agreement and Mutual
Agreement required the Company to pay Argo a lump sum of
satisfaction of the
of Judgment in the Court (the "Release of Judgement"). As a result, the court
case is now closed, and the matter is fully and finally resolved between the
parties. A copy of both the Settlement Agreement and the Release of Judgement
are being submitted as exhibits with this filing.
Item 9.01 Financial Statements and Exhibits.
Exhibit No. Description 1.1* Release and Satisfaction of Judgment between
Argonaut Insurance Companyand Petrolia Energy Corporation, dated January 7, 20221.2* Settlement Agreement and Mutual Release between Petrolia Energy Corporationand Argonaut Insurance Company, dated December 30, 2021
* Furnished herewith.