NEWS
Kingsland earns $14,554 in six months of fiscal 2018
2018-07-30 15:14 ET - News Release
Mr. Jeffrey Allison reports
KINGSLAND ENERGY CORP. ANNOUNCES UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL RESULTS FOR THE 2ND QUARTER PERIOD ENDED MAY 31, 2018
Kingsland Energy Corp. has released its unaudited financial results for the second quarter period ended May 31, 2018.
During the six-month period ending May 31, 2018, the corporation pursued several initiatives to procure long-term sustainability in a depressed commodity market environment. The corporation has successfully reduced office administration and associated human resource cost as it pursues financing initiatives to reduce debt and fund growth initiatives. Enhanced Hydrocarbon Recovery Inc. was able to secure some small consulting services which will help with current operations.
The corporation's proposal in 2017 to its creditors closed March 14, 2018, with the issuance of 49,327,008 common shares. Creditors received common shares priced at five cents per common share in exchange for debt, save for the secured creditor who compromised a portion of its debt and agreed not to demand payment or collect interest on the remaining amount for a period of 24 months. The effect of this restructure was recorded at Nov. 30, 2017. The restructure significantly improves Kingsland's financial position, by decreasing loan amounts, accounts payable accrual amounts, postponing interest on remaining debt and increasing the amount of outstanding common shares.
The corporation is looking to pursue business development opportunities focused toward its wholly owned subsidiary EHR. EHR was pursuing solvent technology to participate in low-cost, enhanced oil recovery programs. EHR is evaluating a number of new energy technology business initiatives including consulting opportunities.
The financial information presented in the attached table has been adjusted to consider the impact of the proposal.
Financial results
Selected financial information of KLE is summarized herein. Financial results for KLE have been prepared in accordance with international financial reporting standards.
(stated in Canadian dollars, except for-share amounts) Six-month period Six-month period ended May 31, 2018 ended May 31, 2017 Revenues $34,000 $- Expenses $18,105 $32,180 Income (loss) and comprehensive income 14,554 (120,003) (loss) for the period
Revenues for the period were $34,000 compared with nil for the period ending May 31, 2017. Revenues for the period are associated with consulting services. Revenue from consulting services may occur from time to time as opportunities arise but are not a continuing source of revenue. There are no revenues from oil and gas production for the period. Revenues from oil and gas will not resume until the corporation acquires existing production and realizes revenue from the farm-in opportunities.
General and administrative expense for the period was $18,105 compared with $32,180 for the period ending May 31, 2017. The decrease of $14,075 is attributable to reduction in rent, consulting expenses resulting from reduced activity levels and everyday operating expenses.
Net income and comprehensive income for the period was $14,554 compared with a loss of $120,003 as at May 31, 2017. The change is attributable to reduction in rent, consulting expenses, everyday operating expenses, as described in this news release, reduced finance charges and the consulting income realized.
Total assets for the period were $414,440 versus $409,650 as at Nov. 30, 2017. The change in assets value is due to timing of receipts and payments.
As at May 31, 2018, current liabilities were $8,787 versus $24,223 as at Nov. 30, 2017. The decrease is attributed to the settlement of a secured loan, which decreased the current portion of long-term debt during the 2017 year.
Long term liabilities were $194,836 as at May 31, 2018, compared with $189,164 as at Nov. 30, 2017. The increase in liability relates to the accrual of interest on long-term debt to the effective date of the proposal.
We seek Safe Harbor.