CanAsia Energy Corp. (TSX-V:CEC) has announced that the company, through its subsidiary, Andora Energy Corp., has struck a deal with minority shareholders and now holds 100% of Andora's common shares. According to Chen Lin of What is Chen Buying, What is Chen Selling, the company is now in an ideal position to sell the Sawn Lake project.
CanAsia Energy is a Canadian-based publicly listed junior oil and gas company. They are fairly new; they incorporated on May 27th, 2022, as a result of an agreement between Pan Orient Energy Corp. and Dialog Group Berhad of Malaysia, in which Pan Orient's operations outside of Thailand would become CanAsia. Its CEO is Jeff Chisholm and Marcel Nunes is its CFO and Corporate Secretary.
CanAsia Strike Deal with Andora Shareholders
CanAsia has announced that its subsidiary, Andora Energy Corp. has bought common shares in the company held by minority shareholders. CanAsia now holds 100% of common shares in Andora. Andora paid 4.4 cents per share to minority shareholders, and holders of Andora options accepted a cash payment equal to the in-the-money value of the options. CanAsia provided Andora with the funds to complete the transaction and pay related expenses, which amounted to about $1.9 million. Andora shareholders approved the action in a meeting on the 27th of March. According to CanAsia, the level of approval was 99.9% of the votes cast by shareholders who participated, and votes were cast by 89.56% of Andora common shares.
CanAsia also included instructions for Andora shareholders in its press release. Only registered holders of Andora common shares are allowed to participate by completing and signing a letter of transmittal.
Opportunity as OPEC Pulls Back
"CanAsia Energy Corp. announced completion of the purchase of Andora minority shares. Now, the company is ready to sell the oil sands project."
In the wake of the Russian invasion of Ukraine, the energy market has seen a sizable shift in supply, and some experts believe that the move away from Russia may be permanent. Kadri Simson, the European Energy Commissioner, said "I believe this is not a temporary situation, but marks a structural change in Europe's energy outlook and trade orientation." While Russia previously supplied 40% of Europe's natural gas, but that number has fallen to 12%, and US suppliers have picked up the slack.
North American oil and natural gas could also see prices rise as Saudi Arabia and other OPEC+ members pledge to cut production by 1.16 million barrels per day. This promise will last from May until the end of this year. American officials believe this to be another effect of the war in Ukraine and Russia's efforts to throttle natural gas to Europe, since this move appears to be in cooperation with Russian interests.
Catalysts
Chen Lin, of What is Chen Buying? What is Chen Selling?, remarked that "CanAsia Energy Corp. announced completion of the purchase of Andora minority shares. Now, the company is ready to sell the oil sands project."
Andora Energy manages the Sawn Lake project in Alberta. Andora has interests in 27 sections of oil sands leases within the Peace River Oil Sands area. Sawn Lake is a SAGD project, and the development plan is to advance in stages of five standardized "battery scale" facilities.
In March of 2022, a Contingent Bitumen Resources Report by Sproule Associates Limited assigned unrisked "best estimate" contingent resources to Andora were 292.0 million barrels recoverable to the central and south blocks of the Andora operated Sawn Lake project. The estimated cost for the first two stages is the $11.4 million, and the forecast production is 1,240 BOPD. The third stage has an estimated capital cost of about $33.5 million and will increase production to an estimated 3,100 BOPD. The company received regulatory approval for the commercial expansion to 3200 BOPD in 2017.
Ownership and Share Structure
CanAsia Energy Corp. has 49.79 million shares outstanding, with 39.23 million free float traded shares. The company has a market cap of CA$7.03 million. It trades in the 52 week period between .13 and 1.24.
Gulf Overseas Investment Trading Corp. owns the largest amount of company shares, with 12.47%. LSV Asset Management owns .51%. As for company management, Jeffrey C. Chisholm, the CEO and a director, owns 3.61%, Gerald Joseph Macey, a director, owns 2.89%, Michael John Hibberd, a director, owns 0.84%, Cameron Wesley Taylor, a director, owns 0.83%, Richard M. Alexander, a director, owns 0.50%, and William Ostlund owns 0.08%.
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1) Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee. He/she or members of his/her household own securities of the following companies mentioned in the article: none. He/she or members of his/her household are paid by the following companies mentioned in this article: XXXXX. His/her company has a financial relationship with the following companies referred to in this article: none.
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