Item 8.01 Other Events

Petrolia Energy Corporation ("Petrolia" or the "Company"), the parent company of Petrolia Canada Corporation ("Petrolia Canada") entered into a Letter Agreement on June 11, 2022, dated effective as of June 1, 2022 (the "Agreement") with Blue Sky Resources Ltd. ("BSR"), a Canadian company, to sell Petrolia Canada's fifty percent (50%) Working Interest in the Utikuma Lake Oil Field (the "Asset") in Alberta, Canada to BSR.

Under the Agreement, BSR agreed to purchase Petrolia Canada's fifty percent (50%) Working Interest in the Asset for the purchase price of SIX MILLION CANADIAN DOLLARS ($6,000,000.00 CAD). The parties specifically agreed that (i) BSR would deposit SIX HUNDRED THOUSAND CANADIAN DOLLARS ($600,000.00 CAD) in an escrow account upon execution of the Agreement; and (ii) at closing the remaining FIVE MILLION FOUR HUNDRED THOUSAND CANADIAN DOLLARS ($5,400,000.00 CAD) would be paid subject to the following two (2) Petrolia Canada debt deductions: (i) a loan repayment in the amount of TWO MILLION FIFTY-ONE THOUSAND ONE HUNDRED FIFTY-TWO US DOLLARS ($2,051,152.00 US) plus interest of ONE HUNDRED FORTY-ONE THOUSAND NINE HUNDRED SIXTY-FOUR US DOLLARS ($141,964.00 US); and (ii) a security release against the Asset in the amount of EIGHT HUNDRED SEVENTY-FOUR THOUSAND US DOLLARS ($874,000.00 US).

Additionally, Petrolia Canada and BSR agreed that an audit to reconcile all operating accounts and to determine any accounts owing between Petrolia Canada and BSR and a Pre-closing Settlement ("PCS") Statement of accounts to be provided to Petrolia Canada by BSR would be completed prior to closing.

The closing of the purchase and sale transaction covered by this Letter Agreement shall occur five (5) days after the PCS Statement has been agreed to between the parties.

A copy of the Letter Agreement is being submitted as Exhibit 1.0 with this filing.

Item 9.01. Financial Statements and Exhibits.





Exhibit No.   Description

1.0*            Letter Agreement entered on June 11th 2022, by and between Blue
              Sky Resources Ltd. and Petrolia Energy Corporation.
104           Cover Page Interactive Data File (embedded within the Inline XBRL
              document)

* Filed herewith.

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