Petropower Corporation engages in the exploration, development, and production of oil and natural gas. In 2019, the company spent $8,500,000 exploring a new site in northern Alberta. The site was determined to be viable and an additional $4,000,000 was spent on developing the site. At the end of 2019, proven reserves were estimated to be 500,000 barrels-of-oil-equivalent (BOE). In 2020, the company began extraction from the site and produced 60,000 BOE. Estimated proven reserves at the end of 2020 were 540,000 BOE.

Required:

Prepare the journal entries for Petropower using IFRS. Assume that the company has a policy of capitalizing the costs of exploration and evaluation.