Item 8.01 Other Events

Petrolia Energy Corporation ("Petrolia" or the "Company") is the operator of thirty-eight (38) inactive wells in New Mexico, at the Twin Lakes San Andres Unit ("TLSAU"). TLSAU is located 45 miles from Roswell, Chaves County, New Mexico.

As previously reported and in Petrolia's Form 8-K dated October 25, 2021 (reference to which is hereby made), on April 8, 2021, the State of New Mexico Energy, Minerals and Natural Resources Department, Oil Conservation Division (the "OCD") issued a Notice of Violation (the "NOV") to Petrolia alleging that the Company violated four regulations under Title 19, Chapter 15 of the New Mexico Administrative Code (the "NMAC") by: (i) failing to file production reports for certain wells, (ii) exceeding the number of inactive wells allowed, (iii) failing to provide financial assurance in the amount required, and (iv) failing to provide additional financial assurance in the amount required.

The Company acknowledged the violations alleged in the NOV and requested an informal resolution. On December 30, 2021, to resolve this matter, Petrolia entered into a Stipulated Final Order ( the "SFO") in Case No. 21982 with the OCD whereby Petrolia among other things agreed to: (i) submit appropriate forms for wells identified on the SFO Inactive Well List, (ii) plug the specific TLSAU wells listed in section 8 (c) and (d) of the SFO, as well as submit all required information and forms specified in the SFO, (iii) open an escrow account meeting the terms listed in the SFO, (iv) deposit funds into an escrow account within the timeframe described in the SFO, and (v) provide the OCD with a report proposing deadlines for bringing all remaining wells into compliance. A copy of the SFO is being submitted as an exhibit with this filing.

Item 9.01 Financial Statements and Exhibits.





Exhibit No.   Description

   1.1*         State of New Mexico: Energy, Minerals and Natural Resources
              Department, Oil Conservation Division, Stipulated Final Order in
              Case No. 21982

* Furnished herewith.

© Edgar Online, source Glimpses