Revised Announcement Regarding Application for Management Cease Trade Order

CALGARY, Alberta, April 26, 2024 (GLOBE NEWSWIRE) -- Decklar Resources Inc. (TSX-V: DKL) (OTC: DKLRF) (FSE: A1U1) (the “Company” or “Decklar”) announces herewith a revised default announcement from its initial announcement dated April 16, 2024. The Company has applied to the Alberta Securities Commission, (the “ASC”), under National Policy 12-203 - Management Cease Trade Orders (“NP 12-203”) requesting that a temporary management cease trade order (“MCTO”) be granted in respect of the late filing of specified requirements as per NP12-203, within the time period prescribed by securities legislation of one or more of the following: (a) annual financial statements; (b) annual MD&A; (c) an annual information form; (d) a certification of filings under National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings (together, the “Annual Filings”). The Annual Filings are required to be filed on or before April 29, 2024. There is no guarantee that an MCTO will be granted.

The Company, its auditor and its independent reserves engineer require more time to complete the preparation, reviews and audit of the Annual Filings. The delay has been caused due to the Company’s constrained cash flow as a result of operational difficulties in selling its crude oil in Nigeria and the inability to satisfy its accounts payable.

The remediation plan will include Decklar providing its auditor with all relevant documents relating to the Corporation’s draft financial statements for the year ended December 31, 2023, the related draft management’s discussion and analysis of financial condition and draft results of operations for those periods. The auditors work program, to meet their responsibilities in accordance with Canadian generally accepted auditing standards and to review and express an opinion on Decklar’s December 31, 2023 financial statements will include (but not limited to) the following:

1. Obtaining an understanding of Decklar’s financial reporting framework and internal controls and assessing key controls on a test basis;
2. Assessing the systems used to ensure compliance with applicable legislative and related authorities pertaining to financial reporting and other financial functions;
3. Examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements;
4. Assessing the appropriateness and consistency of accounting principles used and their application;
5. Assessing the significant estimates used by management; and
6. Assessing the entity’s use of the going concern basis of accounting in the preparation of the consolidated financial statements.

In addition, the remediation plan that will be implemented between the Company and reporting reserve engineers, to provide the reserves estimates and future net revenue forecasts, prepared and presented in accordance with the Canadian standards set out in the Canadian Oil and Gas Evaluation Handbook (“COGEH”) and national Instrument 51-101 (“NI 51-101”) will include (but not be limited) to the following: