Canasia Energy loses $900,000 in Q2

Executive Summary

• Canasia Energy Corp. released its unaudited consolidated financial and operating results for the second quarter and six months ended June 30, 2025.
• The company is actively exploring alternatives to divest its interests in the Sawn Lake heavy oil project (via subsidiary Andora), including a potential sale, farmout, or joint venture, with preliminary discussions underway.
• Canasia submitted a bid for concession L8 in the Thailand 25th oil and gas licensing round as part of a consortium with a 30% non-operated working interest, with results expected in Q1 2026.

Key Details

• Financial Performance (Q2 2025 vs Q2 2024):
  • Net loss: $900,000 ($0.01 per share) compared to net income of $3.3 million ($0.03 per share) in Q2 2024.
  • Q2 2024 income included a $4.2 million partial reversal of impairment of exploration and evaluation assets related to Sawn Lake.
  • Cash flow used in operations: $500,000 (nil per share) compared to $800,000 ($0.01 per share) in Q2 2024.
  • General and administrative expenses: $500,000 compared to $600,000 in Q2 2024.
    • Personnel and premises: $200,000 (vs $300,000).
    • External services: $200,000 (vs $200,000).
    • Public company costs: $100,000 (vs $100,000).
  • Operating expenses: $200,000 (consistent with Q2 2024) for safeguarding/maintaining the Sawn Lake facility.
• Balance Sheet (as of June 30, 2025):
  • Working capital: $1.5 million.
  • Shareholders' equity: $6.4 million.
  • Long-term debt: None.
  • Common shares outstanding: 112.8 million (as of Aug 12, 2025, June 30, 2025, and Dec 31, 2024).
• Provisions and Liabilities:
  • Onerous contract provision: $1.0 million recognized for the natural gas pipeline tariff agreement (IAS 37) due to the shut-in status of the Sawn Lake operation.
  • Decommissioning provision:
    • Current portion: $600,000 related to legacy subsidiaries in Indonesia (East Jabung PSC) and Sawn Lake.
    • Non-current portion: $1.7 million related to Sawn Lake interests.
• Strategic Updates:
  • Sawn Lake Divestment: Company is working with financial advisors to evaluate alternatives for the Sawn Lake project held by Andora. Preliminary discussions have occurred with multiple parties. No definitive timeline or assurance of a transaction exists.
  • Thailand Licensing Round: Submitted a bid for concession L8 in the 2025 onshore Thailand 25th licensing round.
    • Structure: Consortium bid.
    • Interest: Non-operated 30% working interest.
    • Timeline: Winning parties to be notified by the government of Thailand by Q1 2026.

Notable Quotes

• Jeff Chisholm, President and CEO: "Canasia is working with financial advisors in connection with a process to explore and evaluate alternatives to divest of all or a portion of its interests in the Sawn Lake, Alta., heavy oil project held through its wholly owned subsidiary, Andora... In response to initial market outreach, a number of parties have engaged in preliminary discussions with Canasia and are currently evaluating a potential transaction with respect to Sawn Lake."
• Jeff Chisholm, President and CEO: "Under the guidelines of the 2025 onshore Thailand 25th oil and gas licensing round, Canasia submitted a bid on concession L8, as part of a consortium and with a non-operated 30-per-cent working interest. It is anticipated winning parties with be notified by the government of Thailand by the first quarter of 2026."