CALGARY,
AB, Aug. 3, 2023 /CNW/ - CanAsia Energy Corp.
("CanAsia" or the "Company") (TSXV: CEC) reports 2023 second
quarter consolidated financial and operating results.
The Company is today filing its unaudited
consolidated financial statements as at and for the six months
ended June 30, 2023 and related
management's discussion and analysis with Canadian securities
regulatory authorities. Copies of these documents may be obtained
online at www.sedarplus.ca or the Company's website,
www.canasiacorp.com.
Commenting today on CanAsia's 2023 second quarter
results, President and CEO Jeff
Chisholm stated: "Second quarter activities were focused
mainly on a number of items related to the Sawn Lake joint venture.
Andora received a summary judgment in its favor for the payment of
$200,000 for a portion of the amounts
owing by its Sawn Lake partners. Actions enforcing this judgement
are currently underway. The Company still anticipates an onshore
Thailand licensing round to be
announced in 2023, shortly after the appointment of a prime
minister and formation of a new cabinet in Thailand."
HIGHLIGHTS
- CanAsia had working capital totaling $2.4 million, no long-term debt and shareholders'
equity of $1.5 million at
June 30, 2023.
- Common shares outstanding were 49.8 million at August 1, 2023 and June
30, 2023.
- Net loss attributable to common shareholders for the second
quarter of 2023 was $0.7 million
($0.01 per share) compared to
$1.3 million ($0.03 per share) in the first quarter. Cash flow
used in operations for the second quarter of 2023 was $1.1 million ($0.02
per share) compared to $84 thousand
($0.00 per share) in the first
quarter.
- General and administrative expense in the second quarter of
2023 was $480 thousand compared to
$529 thousand in the first quarter,
comprised primarily of expenses related to personnel and premises,
external services, and public company costs.
-
- Personnel and premises costs in the second quarter of 2023 were
$171 thousand compared to
$189 thousand in the first quarter.
These costs include salaries and benefits for employees, and fees
incurred for consultants and contractors. They also include rent
and other office costs related to the Company's Calgary office.
- External services costs in the second quarter of 2023 were
$177 thousand compared to
$235 in the first quarter, mainly
related to professional fees for legal, audit and tax
services.
- Public company costs of $75
thousand in the second quarter of 2023 compared to
$94 thousand in the first quarter
were incurred for maintaining the Company's status as a public
company.
- Operating expenses in the second quarter of 2023 were
$145 thousand compared to
$90 thousand in the first quarter.
These were incurred to safeguard and maintain the assets of the
suspended Steam Assisted Gravity Drainage project facility and
wellpair of CanAsia's wholly-owned subsidiary Andora Energy
Corporation ("Andora") at Sawn Lake Central.
- The natural gas pipeline tariff agreement which was entered
into between Andora and a third party in 2018 with a
commencement date of May 1, 2023 is
considered an onerous contract as of March
31, 2023 under IAS 37 since the operation at Sawn Lake is
shut-in. The Company has recognized a provision of $0.9 million representing the net cost of
fulfilling the contract.
- The current portion of the decommissioning provision of
$1.0 million as at June 30, 2023 relates to the legacy subsidiaries
of CanAsia's wholly-owned subsidiary Pan Orient Energy Holdings
Ltd. which held interests in the East Jabung and Jambi Production
Sharing Contracts in Indonesia and
a well pertaining to Andora's interests in Sawn Lake, Alberta. CanAsia is withdrawing from
activities in Indonesia and
decommissioning related costs are expensed when incurred. The
non-current portion of the decommissioning provision of
$1.4 million as at June 30, 2023 pertained to Andora's interests in
Sawn Lake, Alberta.
- In February 2023, Andora sold
equipment to a third party for $100
thousand. The net book value of the equipment was $nil,
resulting in a gain on sale of $100
thousand.
- On February 28, 2023, the board
of directors of Andora accepted a formal proposal made by CanAsia
with respect to a transaction whereby the outstanding shares of
Andora were consolidated; and all fractional shares resulting from
the Consolidation were redeemed by Andora and cancelled, and the
holders thereof would be entitled to receive a cash redemption
payment of $0.044 for each
pre-consolidation share of Andora. As part of the transaction all
issued and outstanding options to acquire shares of Andora
were surrendered for their "in-the-money" value.
The Andora transaction was approved by shareholders of Andora at a
special meeting held on March 27,
2023. All other conditions to the Andora Transaction
becoming effective were also satisfied or waived, and the Andora
transaction was completed on March 27,
2023. As a result of the Andora transaction, Andora now
has 1 common share outstanding. CanAsia, which previously owned
88.2% of the outstanding shares of Andora as at December 31, 2022, now owns 100% of Andora.
Non-controlling interest was reduced to $nil on March 27, 2023, with a corresponding offset to
deficit.
Consideration paid for redeeming fractional shares pursuant to
the Andora transaction amounted to $1.24 million. Andora paid former option holders
a total of $0.33 million,
representing the "in-the-money" value of all the options
surrendered. Other expenses of the Andora transaction totaled
$0.12 million.
OUTLOOK
Enforcement actions against Andora's 25% working
interest Sawn Lake partners will continue in the third quarter.
CanAsia will either seek to farmout a portion of Andora's interest,
or outright sale of the asset. The Company plans to participate in
an onshore Thailand bid round that
will likely be announced in 2023, possibly in late third
quarter.
Financial and Operating Results
($000s of Canadian dollars except where
indicated)
|
Three
months ended
June 30, 2023
|
Period from
May 27,
2022 to
June 30,
2022(1)
|
Six
months
ended
June 30,
2023
|
Period from
May 27,
2022 to
June 30,
2022(1)
|
FINANCIAL
|
|
|
|
|
Financial Statement Results
|
|
|
|
|
Net loss attributable
to common shareholders (2)
|
(676)
|
-
|
(1,941)
|
-
|
|
Per share – basic and
diluted
|
$
(0.01)
|
-
|
$
(0.04)
|
-
|
Cash flow used in
operating activities (3)
|
(1,053)
|
-
|
(1,137)
|
-
|
|
Per share – basic and
diluted
|
$
(0.02)
|
-
|
$
(0.02)
|
-
|
Cash flow used in
investing activities (3)
|
(11)
|
-
|
(1,591)
|
-
|
|
Per share – basic and
diluted
|
$
(0.00)
|
-
|
$
(0.03)
|
-
|
Cash flow used in
financing activities (3)
|
(10)
|
-
|
(12)
|
-
|
|
Per share – basic and
diluted
|
$
(0.00)
|
-
|
$
(0.00)
|
-
|
Working
capital
|
2,395
|
-
|
2,395
|
-
|
Shareholders' equity
(4)
|
1,536
|
-
|
1,536
|
-
|
Shares outstanding
(000s)
|
49,794
|
-
|
49,794
|
-
|
General and
administrative expense (2)
|
(480)
|
-
|
(1,009)
|
-
|
Operating expense
(2)
|
(145)
|
-
|
(235)
|
-
|
Natural gas pipeline
tariff expense (2)
|
-
|
-
|
(901)
|
-
|
Stock-based
compensation (2)
|
(29)
|
-
|
(67)
|
-
|
Amortization
(2)
|
(16)
|
-
|
(32)
|
-
|
Decommissioning
recovery (2)
|
(53)
|
-
|
(7)
|
-
|
Gain on sale of
equipment (2)
|
-
|
-
|
100
|
-
|
Finance income
(2)
|
73
|
-
|
156
|
-
|
Foreign exchange (loss)
gain (2)
|
(26)
|
-
|
5
|
-
|
Deferred income tax
recovery (2)
|
-
|
-
|
22
|
-
|
Net loss attributable
to non-controlling interest in Andora (2)
|
-
|
-
|
27
|
-
|
Net loss attributable
to common shareholders (2)
|
(676)
|
-
|
(1,941)
|
-
|
1)
|
The Company was
incorporated on May 27, 2022 but did not commence active operations
until August 25, 2022.
|
2)
|
As set out in the
Consolidated Statement of Operations and Comprehensive Loss in
CanAsia's Consolidated Financial Statements.
|
3)
|
As set out in the
Consolidated Statement of Cash Flows in CanAsia's Consolidated
Financial Statements.
|
4)
|
As set out in the
Consolidated Statement of Changes in Shareholders' Equity in
CanAsia's Consolidated Financial
Statements.
|
Cautionary Statements
This press release may contain forward-looking
information. Forward-looking information is generally identifiable
by the terminology used, such as "will", "expect", "believe",
"estimate", "should", "anticipate", "potential", "opportunity" or
other similar wording. Forward-looking information in this press
release may include, but is not limited to, the strength of the
Company's financial position; the need for and availability of
additional capital; plans for development of the Sawn Lake heavy
oil project; and the anticipated onshore Thailand oil and gas licensing round.
By its very nature, forward-looking information
requires CanAsia and its management to make assumptions that may
not materialize or that may not be accurate. In addition,
forward-looking information is subject to known and unknown risks
and uncertainties and other factors, some of which are beyond the
control of CanAsia, which could cause actual events, results,
expectations, achievements or performance to differ materially.
Although CanAsia believes that the expectations reflected in its
forward-looking information are reasonable, it can give no
assurances that those expectations will prove to be correct.
CanAsia undertakes no obligation to update publicly or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE CanAsia Energy Corp.