CANASIA ENERGY CORP. 2024 Year-end Financial & Operating Results
Canada NewsWire
CALGARY, AB, March 13, 2025
CALGARY, AB, March 13, 2025 /CNW/ - CanAsia Energy Corp. ("CanAsia" or the "Company") (TSXV: CEC) reports 2024 year-end and fourth quarter consolidated financial and operating results.
The Company is today filing its audited consolidated financial statements as at and for the year ended December 31, 2023 and related management's discussion and analysis 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 results, President and CEO Jeff Chisholm stated: "The company is pleased to announce that Government of Thailand has formally announced that bids are to be submitted by interested parties between July 1 and 16, 2025 on 9 onshore concessions located in the North East and Central plains of Thailand. Management are currently finalizing documents to evaluate the acreage and bid as part of a consortium with a 30% participating interest. Thailand will be the Company's primary focus of activities over the next four months while events and circumstances related to the trade dispute between the United States and Canada, including current and potential tariffs and other measures, may impact the timing of a potential transaction involving Andora Energy Corporation's Sawn Lake heavy oil asset."
HIGHLIGHTS
-- CanAsia had working capital totaling $3.1 million, no long-term debt and
shareholders' equity of $7.8 million at December 31, 2024.
-- Common shares outstanding were 112.8 million at March 13, 2025 and at
December 31, 2024.
-- In May 2024, Andora acquired certain Assets from the Debtors pursuant to
Court approved receivership proceedings for a purchase price equal to
$2.0 million (which includes the assumption of various obligations). The
net consideration paid was approximately $1.3 million. The Assets
included the Debtors' 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%. See "Petroleum and Natural
Gas Properties -- Canada" in this MD&A.
-- 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 December 31, 2024.
-- As at December 31, 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
this private placement, the Company recorded $118 thousand in share issue
costs, comprised of $116 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
this 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.
-- During 2024, the Company granted options to directors, officers, and an
employee to purchase an aggregate of 8.3 million common shares under
CanAsia's equity incentive plan at a weighted average exercise price of
$0.135 per share.
-- Net income attributable to common shareholders in 2024 was $1.2 million
($0.01 per share) compared to net loss of $3.2 million ($0.06 per share)
in 2023. Net loss attributable to common shareholders in the fourth
quarter of 2024 was $0.8 million ($0.01 per share) compared to $1.1
million ($0.02 per share) in the fourth quarter of 2023.
-- Cash flow used in operations in 2024 was $2.7 million ($0.02 per share)
compared to $2.0 million ($0.04 per share) in 2023. Cash flow used in
operations in the fourth quarter of 2024 was $0.4 million ($0.00 per
share) compared to $0.4 million ($0.01 per share) in the fourth quarter
of 2023.
-- General and administrative expense in 2024 was $2.2 million compared to
$2.1 million in 2023. General and administrative expense was $0.5 million
in the fourth quarter of 2024 and 2023. General and administrative
expense is comprised primarily of expenses related to personnel and
premises, external services, and public company costs.
--
-- Personnel and premises costs were $0.7 million in 2024 and 2023,
and $0.2 million in the fourth quarter of 2024 and 2023. These
costs include salaries and benefits for employees, and fees
incurred for consultants. They also include rent and other office
costs related to the Company's Calgary office.
-- External service costs for 2024 were $0.9 million compared to $0.8
million in 2023. External services costs were $0.2 million in the
fourth quarter of 2024 and 2023. These costs mainly related to
professional fees for legal, audit, tax services, information
technology and engineering.
-- Public company costs were $0.4 million in 2024 and 2023, and $0.1
million in the fourth quarter of 2024 and 2023. These costs were
incurred for maintaining the Company's status as a public company
and mainly related to shareholder reporting and meeting, TSX fees,
transfer agent, insurance and directors' fees.
-- Operating expenses in 2024 were $0.7 million compared to $0.6 million in
2023. Operating expenses in the fourth quarter of 2024 were $0.2 million
compared $0.3 million in the fourth quarter of 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 natural gas pipeline tariff agreement which was entered into between
Andora and a third party in 2018 with a commencement date of June 1, 2023
was recognized as an onerous contract under IAS 37 since the operation at
Sawn Lake is shut-in. The Company has recognized a provision of $1.0
million representing the net cost of fulfilling the contract as at
December 31, 2024.
-- The current portion of the decommissioning provision of $0.6 million as
at December 31, 2024 was related 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 $1.9 million as December 31,
2024 pertained to Andora's interests in Sawn Lake, Alberta.
-- An impairment recovery of $4.2 million recorded in the second quarter of
2024 was related to a partial impairment reversal with respect to a 75%
Sawn Lake working interest already owned by Andora prior to the
Acquisition, as discussed above.
OUTLOOK
The Company is pleased to announce that the Government of Thailand has formally announced that bids are to be submitted by interested parties between July 1 and 16, 2025 on 9 onshore concessions located in the North East and Central plains of Thailand. Management are currently finalizing documents to evaluate the acreage and bid as part of a consortium, with a 30% participating interest. Thailand will be the Company's primary focus of activities over the next four months while events and circumstances related to the trade dispute between the United States and Canada, including current and potential tariffs and other measures, may impact the timing of a potential transaction involving Andora's Sawn Lake heavy oil asset. The Company will continue to monitor the trade dispute as it involves and the potential impact thereof on the potential monetization of Andora's Sawn Lake heavy oil asset.
Financial and Operating Results
Three months ended Year endedDecember 31,
December 31,
($000s of Canadian dollars 2024 2023 2024 2023
except where indicated)
FINANCIAL
Financial Statement Results
Net income (loss)
attributable to common
shareholders
(1) (791) (1,085) 1,161 (3,194)
Per share -- basic and
diluted $ (0.01) $ (0.02) $ 0.01 $ (0.06)
Cash flow used in operating
activities (2) (401) (389) (2,693) (2,007)
Per share -- basic and
diluted $ (0.00) $ (0.01) $ (0.02) $ (0.04)
Cash flow used in investing
activities (2) (3) (4) (1,337) (1,596)
Per share -- basic and
diluted $ (0.00) $(0.00) $ (0.01) $(0.03)
Cash flow from (used in)
financing activities (2) (10) 4,616 1,118 4,602
Per share -- basic and
diluted $ (0.00) $ 0.08 $ 0.01 $ 0.09
Working capital 3,113 5,918 3,113 5,918
Shareholders' equity (3) 7,838 4,952 7,838 4,952
Weighted average shares
outstanding (000s) 112,794 55,822 112,278 51,313
General and administrative
expense (1) (479) (518) (2,204) (2,078)
Operating expense (1) (156) (280) (680) (625)
Natural gas pipeline tariff
provision (1) (71) (164) 9 (1,050)
Stock-based compensation (1) (114) (21) $(583.SI)$ (116)
Amortization (1) (18) (18) (62) (66)
Decommissioning recovery
(expense) (1) - (142) 47 268
Gain on sale of equipment
(1) - - - 100
Impairment recovery (1) - - 4,242 -
Finance income (expense) (1) (19) 70 312 293
Foreign exchange gain (loss)
(1) 66 (12) 80 31
Deferred income tax recovery
(expense) (1) - - - 22
Net loss attributable to
non-controlling interest
in Andora (1) - - - 27
Net income (loss)
attributable to common
shareholders
(1) (791) (1,085) 1,161 (3,194)
(1) As set out in the Consolidated Statements of Operations
and Comprehensive Income (Loss) in CanAsia's Consolidated
Financial Statements.
(2) As set out in the Consolidated Statements of Cash
Flows in CanAsia's Consolidated Financial Statements.
(3) As set out in the Consolidated Statements 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; statements with respect to a potential transaction involving Andora's Sawn Lake heavy oil project, including the impact of the trade dispute between the United States and Canada thereon; and the anticipated onshore Thailand oil and gas licensing round, including the expected timing thereof and the Company's plans to evaluate a potential bid as part of a consortium with a 30% participating interest.
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. See "Forward-Looking Statements" in CanAsia's management's discussion and analysis for the year ended December 31, 2024 for more information on the assumptions on which the Company has relied and the risks and uncertainties and other factors that could impact the forward-looking information in this press release. 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.
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/CONTACT:
FOR FURTHER INFORMATION, PLEASE CONTACT: CanAsia Energy Corp., Jeff Chisholm, President and CEO (located in Bangkok, Thailand), Email: jeff@canasiacorp.com - or - Marcel Nunes, Vice President Finance and CFO, Email: marcel@canasiacorp.com, Telephone: (403) 294-1770
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March 13, 2025 08:30 ET (12:30 GMT)