The Company is today filing its unaudited consolidated financial statements as at and for the three months ended
Commenting today on CanAsia's 2024 first quarter results, President and CEO
Activities throughout the remainder of 2024 will be focused on crystalizing value/monetizing the
HIGHLIGHTS
- CanAsia had working capital totaling
$6.4 million , no long-term debt and shareholders' equity of$5.5 million atMarch 31, 2024 . - Common shares outstanding were 112.8 million at
May 14, 2024 andMarch 31, 2024 . - On
April 29, 2024 , the Company announced that Andora Energy Corporation ("Andora"), a wholly-owned subsidiary of CanAsia, has been selected as the successful bidder pursuant to a Court approved sales and investment solicitation process to acquire certain assets (the "Assets") ofNorthern Alberta Oil Ltd. ("NAOL") andDeep Well Oil & Gas (Alberta) Ltd. ("Deep Well" and, together with NAOL, the "Debtors"), including the Debtors' 25% working interest in 11 sections of the Sawn Lake Central block, fromErnst & Young Inc. (the "Receiver"), as receiver and manager of certain of the Debtors' present and after-acquired properties, assets and undertakings, for a purchase price equal to$2.0 million (which includes the assumption of various obligations and a credit bid component of approximately$0.7 million ). Following Andora's successful bid, Andora and the Receiver entered into an amended and restated agreement (the "Sales Agreement") of purchase and sale dated as ofApril 29, 2024 providing for the sale of the Assets to Andora (the "Sales Transaction"). OnMay 14, 2024 , theCourt of King's Bench of Alberta approved the Sales Transaction and the Sales Agreement and the vesting of the Assets in the name of Andora upon closing of the Sales Transaction, which is expected to occur on or aboutMay 17, 2024 . Following completion of the Sales Transaction, Andora's working interest in the 11 gross sections at the Sawn Lake Central block will increase from 75% to 100%. - 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 first quarter of 2024 was
$0.6 million ($0.01 per share) compared to$1.3 million ($0.03 per share) in the first quarter of 2023. - Cash flow used in operations in the first quarter of 2024 was
$0.9 million ($0.01 per share) compared to$0.1 million ($0.00 per share) in the first quarter of 2023. - General and administrative expense in the first quarter of 2024 was
$645 thousand compared to$529 thousand in the first quarter of 2023. General and administrative expense is comprised primarily of expenses related to personnel and premises, external services, and public company costs. The increase was mainly due to higher legal fees related to enforcement actions against joint venture interest holders and engineering costs. - Operating expenses in the first quarter of 2024 were
$185 thousand compared to$90 thousand in the first 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 current portion of the decommissioning provision of
$0.6 million as atMarch 31, 2024 relates to the legacy subsidiaries ofPan Orient Energy Holdings Ltd. which had held interests in the East Jabung Production Sharing Contract inIndonesia and a well pertaining to Andora's interests inSawn Lake ,Alberta . CanAsia is withdrawing from activities inIndonesia and decommissioning related costs are expensed when incurred. The non-current portion of the decommissioning provision of$1.4 million as atMarch 31, 2024 pertained to Andora's interests inSawn Lake ,Alberta .
OUTLOOK
Activities throughout the remainder of 2024 will be focused on crystalizing value/monetizing the
Financial and Operating Results
Three months ended | |||
($000s of Canadian dollars except where indicated) | 2024 | 2023 | |
FINANCIAL | |||
Financial Statement Results | |||
Net loss attributable to common shareholders (1) | (601) | (1,265) | |
Per share – basic and diluted | |||
Cash flow used in operating activities (2) | (919) | (84) | |
Per share – basic and diluted | |||
Cash flow used in investing activities (2) | - | (1,580) | |
Per share – basic and diluted | - | ||
Cash flow from (used in) financing activities (2) | 1,140 | (2) | |
Per share – basic and diluted | |||
Working capital | 6,377 | 3,099 | |
Shareholders' equity (3) | 5,502 | 2,194 | |
Weighted average shares outstanding (000s) | 100,720 | 49,794 | |
General and administrative expense (1) | (645) | (529) | |
Operating expense (1) | (185) | (90) | |
Natural gas pipeline tariff recovery (provision) (1) | 71 | (901) | |
Stock-based compensation (1) | (9) | (38) | |
Amortization (1) | (14) | (16) | |
Decommissioning recovery (1) | 42 | 46 | |
Gain on sale of equipment (1) | - | 100 | |
Finance income (1) | 134 | 83 | |
Foreign exchange gain (1) | 5 | 31 | |
Deferred income tax recovery (1) | - | 22 | |
Net loss attributable to non-controlling interest in Andora (1) | - | 27 | |
Net loss attributable to common shareholders (1) | (601) | (1,265) |
(1) | As set out in the Consolidated Statements of Operations and Comprehensive Loss in CanAsia's |
(2) | As set out in the Consolidated Statements of Cash Flows in CanAsia's Consolidated Financial |
(3) | As set out in the Consolidated Statements of Changes in Shareholders' Equity in CanAsia's |
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; the closing of the Sales Transaction and consolidating a 100% working interest in the
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 three months ended
Neither
SOURCE
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