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 25th 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 ...
