CALGARY,
AB, May 10, 2023 /CNW/ - CanAsia Energy Corp.
("CanAsia" or the "Company") (TSXV:
CEC) reports 2023 first quarter
consolidated financial and operating results.
The Company is today filing its unaudited consolidated financial
statements as at and for the three months ended March 31, 2023 and related management's
discussion and analysis with Canadian securities regulatory
authorities. Copies of these documents may be obtained online
at www.sedar.com or the Company's website, www.canasiacorp.com.
Commenting today on CanAsia's 2023 first quarter results,
President and CEO Jeff Chisholm
stated: "The majority of obligations with regard to the earlier
sale of Pan Orient Energy Corp. have now been fulfilled. Recent
activities have been focused on long lead time environmental
approvals/inspections at Sawn Lake and evaluating options for the
upcoming onshore Thailand bid
round that is anticipated to be announced in 2023."
HIGHLIGHTS
- CanAsia had working capital totaling $3.1 million, no long-term debt and shareholders'
equity of $2.2 million at
March 31, 2023.
- Common shares outstanding were 49.8 million at May 8, 2023 and March 31,
2023.
- Net loss attributable to common shareholders for the first
quarter of 2023 was $1.3 million
($0.03 per share). Cash flow used in
operations for the first quarter of 2023 was $84 thousand ($0.00
per share).
- General and administrative expense in the first quarter of 2023
was $529 thousand, comprised
primarily of expenses related to personnel and premises, external
services, and public company costs.
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- Personnel and premises costs in the first quarter of 2023 were
$189 thousand. 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 first quarter of 2023 were
$235 thousand, mainly related to
professional fees for legal, audit and tax services.
- Public company costs of $94
thousand in the first quarter of 2023 were incurred for
maintaining the Company's status as a public company.
- Operating expenses in the first quarter of 2023 were
$90 thousand and were incurred to
safeguard and maintain the assets of Andora Energy Corporation's
("Andora") suspended Steam Assisted Gravity Drainage 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 May 1, 2023 is considered an
onerous contract as of March 31, 2023
under IAS 37. 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
$0.9 million as at March 31, 2023 relates to the legacy subsidiaries
of Pan Orient Energy Holdings Ltd. ("POEH") which had held
interests in the East Jabung and Jambi Production Sharing Contracts
in Indonesia. 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 March 31, 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 (the "Andora Transaction") whereby
the outstanding shares of Andora were consolidated (the
"Consolidation") 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 Andora
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 $0.1
million.
OUTLOOK
The majority of obligations with regard to the earlier sale of
Pan Orient Energy Corp. have now been fulfilled. Future activities
will be focused on long lead time environmental
approvals/inspections at Sawn Lake and participating in an onshore
Thailand bid round that is
anticipated to be announced in 2023.
COVID-19 and Ukraine Invasion
Events such as the Covid-19 pandemic and the invasion of
Ukraine by Russian forces have
resulted in significant disruption to business operations and a
significant increase in economic uncertainty, with more volatile
commodity prices, currency exchange rates and interest rates, and
increasing rates of inflation. These events have led to a
challenging economic climate in which it is difficult to reliably
estimate the length or severity of these developments and their
financial impact. These events and any potential resulting direct
and indirect impact on the Company have been considered in
management's estimates described above at the period end; however
there could be a further prospective material impact in future
periods.
Climate Change and Environmental, Social, and Governance
("ESG")
Climate change and ESG culture policies are evolving at
regional, national and international levels. Political and economic
events may significantly affect the scope and timing of ESG
policies and climate change measures. The International
Sustainability Standards Board has issued an IFRS Sustainability
Disclosure Standard with the aim of developing sustainability
disclosure standards that are globally consistent, comparable and
reliable. In addition, the Canadian Securities Administrators have
issued proposed National Instrument 51-107 Disclosure of
Climate-related Matters.
The direct or indirect costs of compliance with greenhouse
gas-related regulations and ESG directives may have an adverse
effect on the Company's and its customers' businesses, financial
condition, results of operations and prospects; however, at this
time these costs have not yet been quantified.
Financial and
Operating Results
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|
Three months ended and
as at
March 31,
|
($000s of Canadian
dollars except where indicated)
|
|
|
2023
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FINANCIAL
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|
|
|
|
Financial Statement
Results
|
|
|
|
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Net loss attributable
to common shareholders (1)
|
|
|
|
(1,265)
|
|
Per share – basic and
diluted
|
|
|
|
$ (0.03)
|
Cash flow used in
operating activities (2)
|
|
|
|
(84)
|
|
Per share – basic and
diluted
|
|
|
|
$ (0.00)
|
Cash flow used in
investing activities (2)
|
|
|
|
(1,580)
|
|
Per share – basic and
diluted
|
|
|
|
$ (0.03)
|
Cash flow used in
financing activities (2)
|
|
|
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(2)
|
|
Per share – basic and
diluted
|
|
|
|
$ (0.00)
|
Working
capital
|
|
|
|
3,099
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Shareholders' equity
(3)
|
|
|
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2,194
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Shares outstanding
(000s)
|
|
|
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49,794
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General and
administrative expense (1)
|
|
|
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(529)
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Operating expense
(1)
|
|
|
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(90)
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Natural gas pipeline
tariff expense (1)
|
|
|
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(901)
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Stock-based
compensation (1)
|
|
|
|
(38)
|
Amortization
(1)
|
|
|
|
(16)
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Decommissioning
recovery (1)
|
|
|
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46
|
Gain on sale of
equipment (1)
|
|
|
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100
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Finance income
(1)
|
|
|
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83
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Foreign exchange gain
(1)
|
|
|
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31
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Deferred income tax
recovery (1)
|
|
|
|
22
|
Net loss attributable
to non-controlling interest in Andora (1)
|
|
|
|
27
|
Net loss attributable
to common shareholders (1)
|
|
|
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(1,265)
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|
|
|
|
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1) As
set out in the Consolidated Statement of Operations and
Comprehensive Loss in CanAsia's Consolidated Financial
Statements.
|
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2) As
set out in the Consolidated Statement of Cash Flows in CanAsia's
Consolidated Financial Statements.
|
|
3) As
set out in the Consolidated Statement of Changes in Shareholders'
Equity in CanAsia's Consolidated Financial
Statements.
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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.