CROWN POINT ENERGY INC. CROWN POINT ENERGY INC.
Condensed Interim Consolidated Financial Statements
For the three and nine months ended September 30, 2022
(Unaudited)
CROWN POINT ENERGY INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited)
(United States Dollars)
As at | September 30 | December 31 | ||
Note | 2022 | 2021 | ||
Assets | ||||
Current assets: | ||||
Cash | $ | 729,455 | $ | 3,221,118 |
Trade and other receivables | 5 | 3,290,030 | 3,312,898 | |
Oil inventory | 2,246,217 | 271,332 | ||
Prepaid expenses and other current assets | 6 | 3,490,478 | 3,456,336 | |
9,756,180 | 10,261,684 | |||
Property and equipment | 7 | 47,930,576 | 35,536,342 | |
Exploration and evaluation assets | 8 | 14,683,332 | 12,210,949 | |
Restricted cash | 10 | 265,468 | 299,560 | |
$ | 72,635,556 | $ | 58,308,535 | |
Liabilities and Shareholders' Equity | ||||
Current liabilities: | ||||
Trade and other payables | $ | 5,641,958 | $ | 4,420,016 |
Bank debt | 9 | 3,311,315 | - | |
Current portion of notes payable | 10 | 7,128 | 2,169,965 | |
Current taxes payable | 49,469 | 70,950 | ||
Current portion of decommissioning provision | 12 | 441,033 | 597,195 | |
Current portion of lease liabilities | 13 | 47,969 | 76,900 | |
9,498,872 | 7,335,026 | |||
Non-current trade and other payables | 11 | 1,240,228 | 285,693 | |
Non-current taxes payable | 8,248 | 65,045 | ||
Notes payable | 10 | 14,516,296 | 3,209,280 | |
Decommissioning provision | 12 | 12,892,335 | 11,355,084 | |
Lease liabilities | 13 | 183,346 | 243,013 | |
Deferred tax liability | 18 | 5,710,202 | 4,038,821 | |
44,049,527 | 26,531,962 | |||
Shareholders' equity: | ||||
Share capital | 56,456,328 | 56,456,328 | ||
Contributed surplus | 665,423 | 600,462 | ||
Accumulated other comprehensive loss | (18,277,623) | (18,216,364) | ||
Deficit | (10,258,099) | (7,063,853) | ||
28,586,029 | 31,776,573 | |||
$ | 72,635,556 | $ | 58,308,535 | |
Commitments (Note 22)
Subsequent events (Note 23)
Approved on behalf of the Board of Directors: | "Gordon Kettleson" | "Pablo Peralta" | |
Gordon Kettleson, Director | Pablo Peralta, Director |
See accompanying notes to condensed interim consolidated financial statements.
2
CROWN POINT ENERGY INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME
(Unaudited)
(United States Dollars)
For the three months ended | For the nine months ended | ||||||||
September 30 | September 30 | ||||||||
Note | 2022 | 2021 | 2022 | 2021 | |||||
Revenue | |||||||||
Oil and natural gas sales | 16 | $ | 10,751,784 | $ | 6,946,518 | $ | 24,453,878 | $ | 18,324,667 |
Processing income | 71,536 | 65,285 | 172,192 | 177,322 | |||||
Export tax | (470,681) | (210,847) | (892,217) | (680,363) | |||||
Royalties and turnover tax | (2,053,781) | (1,139,473) | (4,207,109) | (3,018,699) | |||||
8,298,858 | 5,661,483 | 19,526,744 | 14,802,927 | ||||||
Expenses | |||||||||
Operating | 4,948,226 | 3,270,645 | 11,473,732 | 7,457,689 | |||||
General and administrative | 758,888 | 535,339 | 2,570,479 | 1,915,036 | |||||
Depletion and depreciation | 2,018,328 | 1,443,923 | 4,952,763 | 4,201,928 | |||||
Gain on acquisition of working interest | 4 | (1,046,626) | (1,347,141) | (1,046,626) | (9,529,551) | ||||
Loss on decommissioning provision | 8 | - | - | 54,228 | - | ||||
Fair value adjustment of contingent consideration | 11 | (65,107) | - | 48,034 | - | ||||
Share-based payments | 14 | 10,165 | 31,611 | 64,961 | 155,928 | ||||
Foreign exchange results | 666,188 | 294,092 | 1,061,390 | 315,733 | |||||
7,290,062 | 4,228,469 | 19,178,961 | 4,516,763 | ||||||
Operating income | 1,008,796 | 1,433,014 | 347,783 | 10,286,164 | |||||
Net finance expense | 17 | (1,478,302) | (372,735) | (2,952,695) | (972,234) | ||||
(Loss) income before taxes | (469,506) | 1,060,279 | (2,604,912) | 9,313,930 | |||||
Tax expense | 18 | (415,151) | 348,429 | (589,334) | (281,608) | ||||
Net (loss) income | (884,657) | 1,408,708 | (3,194,246) | 9,032,322 | |||||
Other comprehensive income | |||||||||
Items that may be subsequently reclassified to profit or loss | |||||||||
Exchange differences on translation of the Canadian parent company | 18,440 | (22,613) | (61,259) | 16,442 | |||||
Total comprehensive (loss) income | $ | (866,217) | $ | 1,386,095 | $ | (3,255,505) | $ | 9,048,764 | |
Net (loss) income per share | 15 | ||||||||
Basic | $ | (0.01) | $ | 0.02 | $ | (0.04) | $ | 0.12 | |
Diluted | $ | (0.01) | $ | 0.02 | $ | (0.04) | $ | 0.12 |
See accompanying notes to these condensed interim consolidated financial statements. 3
CROWN POINT ENERGY INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF
CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited)
(United States Dollars)
For the nine months ended September 30 | Note | 2022 | 2021 | ||
Share capital | |||||
Balance, January 1 and September 30 | $ | 56,456,328 | $ | 56,456,328 | |
Contributed surplus | |||||
Balance, January 1 | 600,462 | 412,947 | |||
Share-based payments | 14 | 64,961 | 155,928 | ||
Balance, September 30 | 665,423 | 568,875 | |||
Accumulated other comprehensive loss | |||||
Balance, January 1 | (18,216,364) | (18,239,476) | |||
Exchange differences on translation of Canadian parent company | (61,259) | 16,442 | |||
Balance, September 30 | (18,277,623) | (18,223,034) | |||
Deficit | |||||
Balance, January 1 | (7,063,853) | (16,838,606) | |||
Net (loss) income | (3,194,246) | 9,032,322 | |||
Balance, September 30 | (10,258,099) | (7,806,284) | |||
Total shareholders' equity | $ | 28,586,029 | $ | 30,995,885 | |
See accompanying notes to these condensed interim consolidated financial statements. 4
CROWN POINT ENERGY INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(United States Dollars)
For the nine months ended September 30 | Note | 2022 | 2021 | |
Operating activities: | ||||
Net (loss) income | $ | (3,194,246) | $ | 9,032,322 |
Items not affecting cash: | ||||
Depletion and depreciation | 4,952,763 | 4,201,928 | ||
Gain on acquisition of working interest | 4 | (1,046,626) | (9,529,551) | |
Loss on decommissioning provision | 8 | 54,228 | - | |
Fair value adjustment of contingent consideration | 11 | 48,034 | - | |
Share-based payments | 14 | 64,961 | 155,928 | |
Unrealized foreign exchange (gain) loss | (962,373) | (235,308) | ||
Finance expense | 2,499,751 | 825,329 | ||
Decommissioning expenditures | 12 | (130,217) | - | |
Tax provision | 18 | 589,334 | 281,608 | |
Funds flow provided by operating activities | 2,875,609 | 4,732,256 | ||
Change in non-cash working capital | 19 | (1,711,172) | 58,946 | |
Net cash provided by operating activities | 1,164,437 | 4,791,202 | ||
Financing activities: | ||||
Bank debt proceeds | 9 | 11,746,249 | 1,356,120 | |
Bank debt repayment | 9 | (7,427,133) | (2,510,574) | |
Notes payable proceeds | 10 | 10,016,590 | 5,297,834 | |
Notes payable repayments | 10 | (657,820) | - | |
Notes payable interest payments | 10 | (882,394) | (271,012) | |
Restricted cash | 34,092 | (293,950) | ||
Lease payments | 13 | (52,492) | (22,556) | |
Interest paid | 9 | (818,044) | (236,915) | |
Net cash provided by financing activities | 11,959,048 | 3,318,947 | ||
Investing activities: | ||||
Acquisition of working interest | 4 | (5,000,000) | (4,166,500) | |
Property and equipment expenditures | 7 | (8,448,725) | (2,448,005) | |
Exploration and evaluation expenditures | 8 | (2,553,818) | (782) | |
Change in other non-current assets | - | 12 | ||
Change in non-cash working capital | 19 | 1,360,741 | 1,218,264 | |
Net cash used in investing activities | (14,641,802) | (5,397,011) | ||
Change in cash | (1,518,317) | 2,713,138 | ||
Foreign exchange effect on cash held in foreign currencies | (973,346) | (57,306) | ||
Cash, January 1 | 3,221,118 | 654,743 | ||
Cash, September 30 | $ | 729,455 | $ | 3,310,575 |
See accompanying notes to these condensed interim consolidated financial statements. 5
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Crown Point Energy Inc. published this content on 09 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2022 17:44:05 UTC.
