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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