CALGARY, AB, May 13, 2026 /CNW/ - CanAsia Energy Corp. ("CanAsia" or the "Company") (TSXV: CEC) reports 2026 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, 2026 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 2026 first quarter results, President and CEO Jeff Chisholm stated: "The first quarter of 2026 was a period dominated by negotiations and technical work related to the recently announced completed transaction with KIGAM of Korea. Activities now shift to the operational phase of the Sawn Lake pilot project, with submission of a category 2 amendment to the existing Sawn Lake approval the highest priority. Additional module engineering design activities will continue in parallel to the amended application and fabrication of the first SAGD module, anticipated to commence in approximately 6 months. In Thailand, the expected December 2025 25(th) Onshore Concession bid round winners announcement was delayed by a snap election announcement. The election took place in February 2026, a new cabinet has been installed, and we expect an announcement of the bid winners at any time."
HIGHLIGHTS
-- As announced by the Company on May 6, 2026, subsequent to March 31, 2026,
the Company, together with its wholly-owned subsidiary Andora Energy
Corporation ("Andora"), entered into a cooperative research and
development agreement (the "Agreement") with the Korea Institute of
Geoscience and Mineral Resources ("KIGAM") with respect to Andora's heavy
oil project in Sawn Lake, Alberta. The Agreement provides for staged
project funding by KIGAM of up to CAD $26 million over three years, with
a possible fourth-year operating period. The Agreement is structured as
a cooperative development arrangement for the demonstration and operation
of solvent-assisted thermal bitumen recovery and related processing
technologies at Sawn Lake. The project scope includes recommissioning
Andora's suspended facility, installing Andora's proprietary produced
water boiler and enhanced steam-SAGD related systems, and later
installing an experimental partial upgrader and water treatment modules.
Andora agreed that, upon delivery of the produced water boiler module to
the Sawn Lake site, it shall assign to KIGAM an undivided fifty percent
ownership interest in the produced water boiler patent.
-- CanAsia had a working capital deficit of $0.5 million, no long-term debt
and shareholders' equity of $4.5 million at March 31, 2026.
-- Common shares outstanding were 112.8 million at May 12, 2026 and at March
31, 2026.
-- Net loss was $0.7 million ($0.01 per share) in the first quarter of 2026
and 2025.
-- Cash flow used in operations in the first quarter of 2026 was $0.6
million ($0.01 per share) compared to $1.2 million ($0.01 per share) in
the first quarter of 2025. Cash flow used in operations in the first
quarter of 2026 was mainly attributable to general and administrative
expense of $0.5 million and operating expense of $0.2 million to maintain
the shut-in facility of Andora.
-- General and administrative expense was $0.5 million in the first quarters
of 2026 and 2025. General and administrative expense is comprised
primarily of expenses related to personnel and premises, external
services, and public company costs.
-- Personnel and premises costs were $0.2 million in the first
quarters of 2026 and 2025. These costs include salaries and
benefits for employees, and fees incurred for consultants. They
also include rent and other office costs related to the Company's
Calgary office.
-- External service costs were $0.2 million in the first quarters of
2026 and 2025. These costs are mainly related to professional fees
for legal, audit, tax services, information technology and
engineering.
-- Public company costs were $0.1 million in the first quarters of
2026 and 2025. These costs were incurred for maintaining the
Company's status as a public company and mainly related to
shareholder reporting and meetings, TSXV fees, transfer agent,
insurance and directors' fees.
-- Operating expenses were $0.2 million in the first quarters of 2026 and
2025. These expenses were incurred to safeguard and maintain the assets
of Andora's suspended SAGD 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
was recognized as an onerous contract under IAS 37 since the operation at
Sawn Lake is shut-in. The Company has recognized a provision of $0.9
million representing the net cost of fulfilling the contract as at March
31, 2026.
-- The current portion of the decommissioning provision of $0.6 million as
at March 31, 2026 was related to the legacy subsidiaries of POEH 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 $1.7 million as March 31,
2026 pertained to Andora's interests in Sawn Lake, Alberta.
OUTLOOK
After the recently announced completed transaction with KIGAM of Korea, activities now shift to the operational phase of the Sawn Lake pilot project, with submission of a category 2 amendment to the existing Sawn Lake approval as the highest priority. Additional module engineering design activities will continue in parallel with the compilation of the amended application, and fabrication of the first module is anticipated to commence in approximately 6 months.
In Thailand, the expected December 2025 25(th) Onshore Concession bid round winners announcement was delayed by a snap election announcement by the Thai Government. The election took place in February 2026 and a new cabinet has been installed. CanAsia expects an announcement of the bid winners at any time.
Liquidity and Capital Resources
At March 31, 2026, CanAsia had a working capital deficit of $0.5 million (including the current portion of the natural gas pipeline tariff provision of $0.3 million and the current portion of the decommissioning provision of $0.6 million). Non-current deposits of $1.3 million consisted of deposits placed with the Alberta Energy Regulator in Canada for the interests of Andora at Sawn Lake. The non-current portion of the natural gas pipeline tariff provision was $0.6 million, and the non-current portion of the decommissioning provision was estimated at $1.7 million for Andora's wells and facilities in Canada. The Company's exploration and evaluation assets at March 31, 2026 amounted to $5.7 million.
As at March 31, 2026, CanAsia did not have sufficient resources available to fund expected activity levels over the next 12 months. However, as a result of the Agreement with KIGAM, the Company is expected to have sufficient funding available to restart production at the Sawn Lake property. The Company may require additional capital to support general corporate activities, general and administrative costs and for any evaluation and exploration program in respect of a Thailand concession in the event the Company is successful in the Thailand bid round.
The amount and timing of the capital required to fund the ongoing operations of CanAsia, including the evaluation and exploration program for a potential Thailand concession is not known. However, it is reasonably certain that the amount of capital required is in excess of the working capital currently held by CanAsia.
In order to continue as a going concern and fund its ongoing operations, unless and until such time as CanAsia's operations begin generating revenue, CanAsia will require additional funds through debt or equity financings or other available means. However, there is no assurance that CanAsia will be able to obtain adequate financing or alternative sources of funds on terms satisfactory to CanAsia or at all.
Financial and Operating Results
Three months ended March 31,
($000s of Canadian dollars except where 2026 2025
indicated)
FINANCIAL
Financial Statement Results
Net loss (1) (674) (730)
Per share -- basic and diluted $ (0.01) $ (0.01)
Cash flow used in operating activities (2) (566) (1,175)
Per share -- basic and diluted $ (0.01) $ (0.01)
Cash flow from (used in) investing
activities (2) (13) -
Per share -- basic and diluted $ (0.00) -
Cash flow from (used in) financing
activities (2) (10) (2)
Per share -- basic and diluted $ (0.00) $ (0.00)
Working capital (526) 2,337
Shareholders' equity (3) 4,500 7,218
Weighted average shares outstanding (000s) 112,794 112,794
General and administrative expense (1) (497) (484)
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