CALGARY,
AB, Nov. 10, 2022 /CNW/ - CanAsia Energy Corp.
("CanAsia" or the "Company") (TSXV: CEC) reports 2022 third quarter
consolidated financial and operating results.
The Company is today filing its unaudited consolidated financial
statements as at and for the three months ended September 30, 2022 and the period from
May 27, 2022 (date of incorporation)
to September 30, 2022 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 2022 third quarter results,
President and CEO Jeff Chisholm
stated: "Third quarter activities were dominated by post
transaction commitments to the buyer of Pan Orient Energy Corp. The
remainder of 2022 will be focused on the long lead time items
required for the re-start of production at the Sawn Lake heavy oil
project and corporate activities related to Sawn Lake. As we
approach year-end 2022, the necessary steps required to optimize
the ownership and re-start of the Sawn Lake heavy oil asset will be
the focus of the Company and regular updates can be expected by
CanAsia shareholders."
HIGHLIGHTS
- On August 25, 2022, CanAsia
completed the arrangement that resulted in Pan Orient Energy Corp.
("Pan Orient") and its Thailand
operations being acquired by a third party (the "Arrangement"). The
Canadian assets and the discontinued Indonesia operations of Pan Orient were
transferred to CanAsia. Further details on the Arrangement are
described below. On August 25, 2022,
CanAsia is owned by the former shareholders of Pan Orient with
49,793,907 common shares outstanding.
Under the Arrangement completed on August
25, 2022: (a) Dialog Group Berhad of Malaysia acquired all of the issued and
outstanding Pan Orient shares and Pan Orient's Thailand business; (b) Pan Orient shareholders
received, for each Pan Orient share held, a cash payment of USD
$0.788 and one CanAsia share; and (c)
CanAsia became a public company with shares listed on the TSX
Venture Exchange. Pan Orient transferred to CanAsia all of Pan
Orient's non-Thailand assets, including Pan Orient's 71.8%
ownership of Andora Energy Corporation ("Andora"), which has
interests in oil sands properties in Sawn Lake, Alberta,
convertible loans receivable from Andora, 100% ownership in Pan
Orient Energy Holdings Ltd. ("POEH") with legacy subsidiaries which
had held interests in Indonesia, and working capital and
non-current deposits. CanAsia assumed all liabilities related to
the non-Thailand business, consisting primarily of accounts payable
and accrued liabilities included in working capital and the
decommissioning provisions.
- CanAsia had working capital and non-current deposits of $6.9
million and no long-term debt at September 30, 2022.
- Common shares outstanding were 49.8 million at November 8, 2022
and September 30, 2022.
- Net income attributable to common shareholders for the third
quarter of 2022 and the period from May 27, 2022 (date of
incorporation) to September 30, 2022 was $55 thousand ($0.00 per
share). Cash flow used in operations in both periods was $103
thousand ($0.00 per share). Financial results as at September
30, 2022 are from completion of the Arrangement on August 25, 2022
and the 37 day period from August 25 to September 30, 2022.
- General and administrative expenses of $217 thousand in the
three-month period ending September 30, 2022 and the period from
May 27, 2022 to September 30, 2022 comprised primarily of expenses
related to personnel and premises, external services, public
company costs and non-cash accretion expense.
- Operating expenses of $36 thousand in the three-month period
ending September 30, 2022 and the period from May 27, 2022 to
September 30, 2022 were incurred for Andora's suspended
demonstration project facility and wellpair at Sawn Lake Central to
safeguard and maintain the assets.
- Pursuant to the Arrangement, CanAsia assumed from Pan Orient
two convertible loan agreements with Andora on August 25, 2022.
Under the agreements, Andora can draw up to $2.5 million against
one revolving credit facility (the "First Credit Facility") and up
to $1.3 million against the second revolving credit facility (the
"Second Credit Facility"). The loans bear interest at HSBC Canada
prime rate for commercial loans in Canadian dollars plus three
percent, per annum. Any principal drawn against the respective
credit facilities, including accrued interest (collectively, the
"outstanding amount"), is repayable upon demand by CanAsia or by
December 31, 2022, whichever is earlier. Security for repayment of
any outstanding amounts is provided by a general security agreement
creating a first fixed charge over all of Andora's property,
subject to certain permitted encumbrances. CanAsia has the option
to convert the outstanding amounts, or a portion thereof, into
Andora's common shares, at a price of $0.15 per share under the
First Credit Facility and at a price of $0.01 per share under the
Second Credit Facility.
As at September 30, 2022, a total of $2.5 million was drawn against
the First Credit Facility and $1.2 million was drawn against the
Second Credit Facility. The outstanding amounts due from Andora are
not expected to be collected in the foreseeable future.
- The current portion of the decommissioning provision of $1.0
million as at September 30, 2022 relates to POEH with its legacy
subsidiaries 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 provisions of $1.4 million as at September 30, 2022
pertained to Andora's business.
OUTLOOK
The remainder of 2022 will be focused on the long lead time
items required for the re-start of production at the Sawn Lake
heavy oil project and corporate activities related to Sawn
Lake. As we approach year-end 2022, the necessary steps
required to optimize the ownership and re-start of the Sawn Lake
heavy oil asset will be the focus of the Company.
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
|
Three Months
Ended
September
30,
|
Period from
May 27, 2022 (date
of incorporation) to
September
30,
|
(thousands of
Canadian dollars except where indicated)
|
|
2022
|
|
2022
|
FINANCIAL (note
1)
|
|
|
|
|
Financial Statement
Results
|
|
|
|
|
Net income attributable
to common shareholders
|
|
55
|
|
55
|
|
Per share – basic and
diluted
|
|
$
0.00
|
|
$ 0.00
|
Cash flow used in
operating activities (note 2)
|
|
(103)
|
|
(103)
|
|
Per share – basic and
diluted
|
|
$
(0.00)
|
|
$ (0.00)
|
Cash flow from
financing activities (note 2)
|
|
9,319
|
|
9,319
|
|
Per share – basic and
diluted
|
|
$
0.19
|
|
$ 0.19
|
Working capital and
non-current deposits
|
|
6,927
|
|
6,927
|
Long-term
debt
|
|
-
|
|
-
|
Shares outstanding
(thousands)
|
|
49,794
|
|
49,794
|
General and
administrative expense
|
|
(217)
|
|
(217)
|
Operating
expense
|
|
(36)
|
|
(36)
|
Stock-based
compensation
|
|
(3)
|
|
(3)
|
Amortization
|
|
(4)
|
|
(4)
|
Decommissioning
recovery
|
|
73
|
|
73
|
Finance
income
|
|
7
|
|
7
|
Foreign exchange
gain
|
|
308
|
|
308
|
Deferred income tax
expense
|
|
(90)
|
|
(90)
|
Net loss attributable
to non-controlling interest in Andora
|
|
17
|
|
17
|
Net income attributable
to common shareholders
|
|
55
|
|
55
|
1) Financial results as
at September 30, 2022 are from completion of the Arrangement on
August 25, 2022 and the 37 day period from August 25 to September
30, 2022.
|
2) As set out in
the Consolidated Statements of Cash Flows 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.
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.