The Company is today filing its unaudited consolidated financial statements as at and for the nine months ended
Commenting today on CanAsia's 2023 third quarter results, President and CEO
HIGHLIGHTS
- CanAsia had working capital totaling
$2.1 million , no long-term debt and shareholders' equity of$1.4 million atSeptember 30, 2023 . - Common shares outstanding were 49.8 million at
November 14, 2023 andSeptember 30, 2023 . - Net loss attributable to common shareholders for the third quarter of 2023 was
$0.2 million ($0.00 per share) compared to$0.7 million ($0.01 per share) in the second quarter. Cash flow used in operations for the third quarter of 2023 was$0.5 million ($0.01 per share) compared to$1.1 million ($0.02 per share) in the second quarter. - General and administrative expense in the third quarter of 2023 was
$551 thousand compared to$480 thousand in the second quarter, comprised primarily of expenses related to personnel and premises, external services, and public company costs.- Personnel and premises costs in the third quarter of 2023 were
$180 thousand compared to$171 thousand in the second quarter. 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'sCalgary office. - External services costs in the third quarter of 2023 were
$225 thousand compared to$177 thousand in the second quarter, mainly related to professional fees for legal, audit and tax services. The increase is mainly due to legal fees incurred for the enforcement actions against Andora Energy Corporation's ("Andora") 25% working interestSawn Lake partners and winding up costs of these subsidiaries ofPan Orient Energy Holdings Ltd. ("POEH") - Public company costs of
$88 thousand in the third quarter of 2023 compared to$75 thousand in the second quarter were incurred for maintaining the Company's status as a public company.
- Personnel and premises costs in the third quarter of 2023 were
- Operating expenses in the third quarter of 2023 were
$110 thousand compared to$145 thousand in the second quarter. These were incurred to safeguard and maintain the assets of Andora's 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
June 1, 2023 is considered an onerous contract as ofMarch 31, 2023 under IAS 37 since the operation atSawn Lake is shut-in. The Company has recognized a provision of$1.0 million representing the net cost of fulfilling the contract. - The current portion of the decommissioning provision of
$0.7 million as atSeptember 30, 2023 relates to the legacy subsidiaries of POEH which had held interests in the East Jabung Production Sharing Contract ("PSC") 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. During the third quarter of 2023, the Company revised its estimate of the decommissioning provision at the Jambi PSC resulting in a$0.3 million reduction to the current decommissioning provision during the quarter. The non-current portion of the decommissioning provision of$1.3 million as atSeptember 30, 2023 pertained to Andora's interests inSawn Lake ,Alberta .
OUTLOOK
The Company took steps in 2023 to increase the value of Andora's Sawn Lake SAGD demonstration project. Andora's minority shareholders were bought out for cash, resulting in 100% ownership of Andora by CanAsia. Efforts were also made to deal with Andora's defaulting 25% partner in the
Financial and Operating Results
Three months ended | Nine months | Period from | |||
($000s of Canadian dollars except where indicated) | 2023 | 2022(1) | 2023 | 2022(1) | |
FINANCIAL | |||||
Financial Statement Results | |||||
Net income (loss) attributable to common shareholders (2) | (168) | 55 | (2,109) | 55 | |
Per share – basic and diluted | |||||
Cash flow used in operating activities (3) | (481) | (103) | (1,618) | (103) | |
Per share – basic and diluted | |||||
Cash flow used in investing activities (3) | (1) | - | (1,592) | - | |
Per share – basic and diluted | - | - | |||
Cash flow from (used in) financing activities (3) | (2) | 9,319 | (14) | 9,319 | |
Per share – basic and diluted | |||||
Working capital | 2,095 | 6,083 | 2,095 | 6,083 | |
Shareholders' equity (4) | 1,396 | 5,835 | 1,396 | 5,835 | |
Shares outstanding (000s) | 49,794 | 49,794 | 49,794 | 49,794 | |
General and administrative expense (2) | (551) | (217) | (1,560) | (217) | |
Operating expense (2) | (110) | (36) | (345) | (36) | |
Natural gas pipeline tariff provision (2) | 15 | - | (886) | - | |
Stock-based compensation (2) | (28) | (3) | (95) | (3) | |
Amortization (2) | (16) | (4) | (48) | (4) | |
Decommissioning recovery (2) | 417 | 73 | 410 | 73 | |
Gain on sale of equipment (2) | - | - | 100 | - | |
Finance income (2) | 67 | 7 | 223 | 7 | |
Foreign exchange gain (2) | 38 | 308 | 43 | 308 | |
Deferred income tax recovery (expense) (2) | - | (90) | 22 | (90) | |
Net loss attributable to non-controlling interest in Andora (2) | - | 17 | 27 | 17 | |
Net income (loss) attributable to common shareholders (2) | (168) | 55 | (2,109) | 55 |
(1) | The Company was incorporated on |
(2) | As set out in the Consolidated Statement of Operations and Comprehensive Loss in CanAsia's Consolidated Financial Statements. |
(3) | As set out in the Consolidated Statement of Cash Flows in CanAsia's Consolidated Financial Statements. |
(4) | As set out in the Consolidated Statement 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; plans for development of 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. 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
SOURCE
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