CANASIA ENERGY CORP. 2024 Third Quarter Financial & Operating Results
Canada NewsWire
CALGARY, AB, Nov. 14, 2024
CALGARY, AB, Nov. 14, 2024 /CNW/ - CanAsia Energy Corp. ("CanAsia" or the "Company") (CEC -- TSXV) reports 2024 third quarter consolidated financial and operating results.
The Company is today filing its unaudited consolidated financial statements ("financial statements") as at and for the nine months ended September 30, 2024 and related management's discussion and analysis ("MD&A") with Canadian securities regulatory authorities. Copies of these documents may be obtained online at www.sedarplus.com or the Company's website, www.canasiacorp.com.
Commenting today on CanAsia's 2024 third quarter results, President and CEO Jeff Chisholm stated: "The consolidation of the interest in Sawn Lake has now been completed and the Company's focus has shifted to pursuing an outright sale of the asset, or farmout whereby all, or a substantial portion, of the required go-forward capital would be covered by a potential farminee. We are encouraged by the initial interest that has been shown by interested parties in the Sawn Lake asset and are hopeful that oil prices provide a window over the first half of 2025 conducive to a transaction. Monetization of Sawn Lake, in some form, will be the focus of activity over the foreseeable future. In Thailand, we are seeing increased Government of Thailand activities related to settlement of the Thailand -- Cambodia maritime boundary and expect an update on the proposed onshore oil and gas concession bid round prior to year end."
HIGHLIGHTS
-- CanAsia had working capital totaling $3.8 million, no long-term debt and
shareholders' equity of $8.5 million at September 30, 2024.
-- Common shares outstanding were 112.8 million at November 12, 2024 and at
September 30, 2024.
-- In May 2024, Andora acquired certain assets pursuant to Court approved
receivership proceedings for a purchase price equal to $2.0 million
(which included the assumption of various obligations). The net
consideration paid was approximately $1.3 million. The assets included a
25% working interest in various heavy oil sands leases in Sawn Lake,
within the central Alberta Peace River Oil Sands region. Following the
acquisition, Andora's working interest in the Sawn Lake Central block
increased from 75% to 100%.
-- The acquisition was accounted for as an asset acquisition and the
Exploration and Evaluation ("E&E") assets acquired were recorded in the
financial statements at $1.4 million. Management of CanAsia has
determined that the amount of $1.4 million represents the fair value of
the 25% Sawn Lake working interest acquired by Andora. As a result, the
Company has partially reversed an impairment of E&E assets previously
recorded in March 2020 by an amount of $4.2 million, to reflect the
current carrying value of the remaining 75% Sawn Lake working interest
already owned by Andora prior to the Acquisition. The carrying value of
the E&E assets was $5.8 million at September 30, 2024.As at September 30,
2024, Andora's Sawn Lake Project is considered to be in its evaluation
stage. Recoverability of the Company's investment in the E&E assets is
dependent on determining the technical feasibility of the project,
obtaining additional financing, and successfully completing the
development of the project. Capitalized costs incurred to date do not
necessarily represent present or future values.
-- On January 16, 2024, the Company completed a brokered private placement
financing for gross proceeds of $1.258 million comprised of 12,580,000
common shares at a price of $0.10 per common share. In connection with
the brokered private placement, the Company recorded $118 thousand in
share issue costs, comprised of $116 thousand in commission and fees and
the estimated fair value of $2 thousand associated with 24,600 broker
warrants issued to the broker. Each broker warrant is exercisable for
common shares at a price of $0.10 per common share for a period of two
years from the issue date.
-- On December 21, 2023, the Company completed a brokered private placement
financing for gross proceeds of $5.042 million comprised of 50,420,000
common shares at a price of $0.10 per common share. In connection with
the Private Placement, the Company recorded $533 thousand in share issue
costs, comprised of $416 thousand in commission and fees and the
estimated fair value of $117 thousand associated with 1,825,200 broker
warrants issued to the broker. Each broker warrant is exercisable for
common shares at a price of $0.10 per common share for a period of two
years from the issue date.
-- Net loss attributable to common shareholders in the third quarter of 2024
was $0.7 million ($0.01 per share) compared to $0.2 million ($0.00 per
share) in the third quarter of 2023.
-- Cash flow used in operations in the third quarter of 2024 was $0.6
million ($0.00 per share) compared to $0.5 million ($0.01 per share) in
the third quarter of 2023.
-- During the third quarter of 2024, the Company granted options to an
employee to purchase an aggregate of 0.2 million common shares under
CanAsia's equity incentive plan.
-- General and administrative expense in the third quarter of 2024 was $0.5
million compared to $0.6 million in the third quarter of 2023. General
and administrative expense is comprised primarily of expenses related to
personnel and premises, external services, and public company costs. The
decrease was mainly due to lower legal fees and engineering costs.
-- Operating expenses was $0.1 million in the third quarter of 2024 and
2023. These expenses were incurred to safeguard and maintain the assets
of Andora's suspended SAGD project facility and wellpair at Sawn Lake
Central.
-- The current portion of the decommissioning provision of $0.6 million as
at September 30, 2024 relates to the legacy subsidiaries of POEH which
had held interests in the East Jabung Production Sharing Contract 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 $1.8 million as at September
30, 2024 pertained to Andora's interests in Sawn Lake, Alberta.
-- An impairment recovery of $4.2 million recorded in second quarter of 2024
was related to partial impairment reversal with respect to a 75% Sawn
Lake working interest owned by Andora, as discussed above.
OUTLOOK
The consolidation of the interest in Sawn Lake has now been completed and the Company's focus has shifted to pursuing an outright sale of the asset, or farmout whereby all, or a substantial portion, of the required go-forward capital would be covered by a potential farminee. It is anticipated that this process will dominate the Company's activity over the next 4 to 6 months, timing somewhat impacted by oil prices. Upon the announcement of the onshore Thailand oil and gas concession bid round, activity will ramp up on this front. An update, or announcement with respect to the Thailand onshore concession bid round, is expected before year end 2024.
Financial and Operating Results
Three months ended Nine months ended
September 30, September 30,
($000s of Canadian dollars except 2024 2023 2024 2023
where indicated)
FINANCIAL
Financial Statement Results
Net income (loss) attributable to
common shareholders
(1) (711) (168) 1,952 (2,109)
Per share -- basic and diluted $ (0.01) $ (0.00) $ 0.02 $ (0.04)
Cash flow used in operating
activities (2) $(554.SI)$ (481) (2,292) (1,618)
Per share -- basic and diluted $ 0.00 $ (0.01) $ (0.02) $ (0.03)
Cash flow used in investing
activities (2) - (1) (1,334) (1,592)
Per share -- basic and diluted $ 0.00 $ (0.00) $ (0.01) $ (0.03)
Cash flow from (used in)
financing activities (2) (2) (2) 1,128 (14)
Per share -- basic and diluted $ 0.00 $ (0.00) $ 0.01 $ (0.00)
Working capital 3,786 2,095 3,786 2,095
Shareholders' equity (3) 8,515 1,396 8,515 1,396
Weighted average shares
outstanding (000s) 112,794 49,794 111,757 49,794
General and administrative
expense (1) (455) (551) (1,725) (1,560)
Operating expense (1) (141) (110) (524) (345)
Natural gas pipeline tariff
recovery (provision) (1) (14) 15 80 (886)
Stock-based compensation (1) (155) (28) (469) (95)
Amortization (1) (15) (16) (44) (48)
Decommissioning recovery
(provision) (1) - 417 47 410
Gain on sale of equipment (1) - - - 100
Impairment recovery (1) - - 4,242 -
Finance income (1) 82 67 331 223
Foreign exchange gain (loss) (1) (13) 38 14 43
Deferred income tax recovery (1) - - - 22
Net loss attributable
tonon-controlling interest in
Andora (1) - - - 27
Net income (loss) attributable to
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