CANASIA ENERGY CORP. 2024 First Quarter Financial & Operating Results

CALGARY, AB, May 16, 2024 /CNW/ - CanAsia Energy Corp. ("CanAsia" or the "Company") (TSXV: CEC) reports 2024 first quarter consolidated financial and operating results.

The Company is today filing its unaudited consolidated financial statements as at and for the three months ended March 31, 2024 and related management's discussion and analysis with Canadian securities regulatory authorities. Copies of these documents may be obtained online at www.sedarplus.com or the Company's website, www.canasiacorp.com.

Commenting today on CanAsia's 2024 first quarter results, President and CEO Jeff Chisholm stated: "In May 2024, the Company will have consolidated a 100% operated working interest in the Sawn Lake heavy oil project, onshore Alberta, Canada. Regardless of whether the Company elects to proceed with the project, or monetize it, this was an important step in maximizing the value of Sawn Lake to Canasia shareholders, or a potential future buyer or partner.

Activities throughout the remainder of 2024 will be focused on crystalizing value/monetizing the Sawn Lake asset and ramping up activities related to the Thailand onshore 25th bid round, when it is announced. Global oil prices are expected to play a substantial role in the timing of any activities related to Sawn Lake and possibly the timing of the announcement of the Thailand bid round."

HIGHLIGHTS

• CanAsia had working capital totaling $6.4 million, no long-term debt and shareholders' equity of $5.5 million at March 31, 2024.
• Common shares outstanding were 112.8 million at May 14, 2024 and March 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") of Northern Alberta Oil Ltd. ("NAOL") and Deep 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, from Ernst & 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 of April 29, 2024 providing for the sale of the Assets to Andora (the "Sales Transaction"). On May 14, 2024, the Court 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 about May 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 at March 31, 2024 relates to the legacy subsidiaries of Pan Orient Energy Holdings Ltd. which had held interests in the East Jabung Production Sharing Contract in Indonesia and a well pertaining to Andora's interests in Sawn Lake, Alberta. CanAsia is withdrawing from activities in Indonesia and decommissioning related costs are expensed when incurred. The non-current portion of the decommissioning provision of $1.4 million as at March 31, 2024 pertained to Andora's interests in Sawn Lake, Alberta.

OUTLOOK

Activities throughout the remainder of 2024 will be focused on crystalizing value/monetizing the Sawn Lake asset and ramping up activities related to the Thailand onshore 25th bid round, when it is announced. Global oil prices are expected to play a substantial role in the timing of any activities related to Sawn Lake and possibly the timing of the announcement of the Thailand bid round.

Financial and Operating Results

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 Sawn Lake heavy oil project; statements with respect to crystalizing value/monetizing the Sawn Lake asset; and the anticipated onshore Thailand oil and gas licensing round.

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 March 31, 2024 for more information on the assumptions on which the Company has relied and the risks and uncertainties and other factors that could impact the forward-looking information in this press release. 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.

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