PETROLIA ENERGY CORP FILES (8-K) Disclosing Other Events, Financial Statements and Exhibits

Item 8.01 Other Events

Petrolia Energy Corporation ("Petrolia" or the "Company") entered into a General
Indemnity Agreement (the "GIA") with Argonaut Insurance Company ("Argo") on
October 4, 2016, in which Argo, as surety, issued Bond Nos. SUR0038623 and
SUR0038641 (the "Bonds"). The State of New Mexico Oil Conservation Division and
The State of Texas Railroad Commission were the obligees.

On August 7, 2017, and September 21, 2017, Argo forwarded written demands to
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 U.S. DOLLARS ($100,000.00).
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.

On October 25, 2017, Argo filed a suit in District Court, Harris County, Texas
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 District Court of Harris County, Texas under
Cause No. 201771934.

On March 6, 2018, Argo obtained a Final Judgment in this case in favor of Argo
for the principal amount of FIFTY THOUSAND U.S. DOLLARS ($50,000.00) and for
attorneys' fees in the amount of TWO THOUSAND SEVEN HUNDRED FORTY-EIGHT U.S.
DOLLARS and FIFTY CENTS ($2,748.50). Subsequently, Petrolia began negotiating a
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
Release dated December 30, 2021 (the "Settlement Agreement"). The Settlement
Agreement required the Company to pay Argo a lump sum of FIFTEEN THOUSAND U.S.
DOLLARS ($15,000.00). Petrolia paid the lump sum of FIFTEEN THOUSAND U.S.
DOLLARS ($15,000.00) on December 31, 2021. Argo accepted the lump sum in full
satisfaction of the March 6, 2018, Final Judgment.

On January 7, 2022, Argo's attorney of record filed a Release and Satisfaction
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
              Company and Petrolia Energy Corporation, dated January 7, 2022
   1.2*         Settlement Agreement and Mutual Release between Petrolia Energy
              Corporation and Argonaut Insurance Company, dated December 30,
              2021

* Furnished herewith.