CALGARY, AB, Aug. 13, 2020 /CNW/ - Pan Orient Energy Corp.
("Pan Orient" or the "Company") (TSXV: POE) reports 2020 second
quarter consolidated financial and operating results.
Please note that all amounts are in Canadian dollars unless
otherwise stated and BOPD refers to barrels of oil per
day.
The Company is today filing its unaudited consolidated financial
statements as at and for the six months ended June 30, 2020 and related management's discussion
and analysis with Canadian securities regulatory authorities.
Copies of these documents may be obtained online at www.sedar.com
or the Company's website, www.panorient.ca.
Commenting today on Pan Orient's 2020 second quarter results,
President and CEO Jeff Chisholm
stated: "Despite the challenging financial and operating
environment experienced in 2020, the Company has completed the
drilling of two potential new pool oil discoveries and one
successful L53-DD oilfield appraisal well while staying within the
bounds of cash flow generated from Thailand oil production. Further, the Company
remains in a strong financial position with $31.4 million in working capital and non-current
deposits (combined Canada and
Thailand) at the end of the second
quarter."
HIGHLIGHTS
Thailand (net to Pan Orient's
50.01% equity interest in the Thailand Joint Venture)
- 2020 drilling program with seven wells to date:
-
- The L53-DD6ST2 appraisal well in the L53-DD field encountered
an estimated combined 16.5 meters of possible oil pay as
interpreted in the BB/CC and AA2 sandstones. The well was placed on
production February 11th
and added, net to Pan Orient's 50.01% equity interest, 188 BOPD in
the first quarter and 181 BOPD in the second quarter.
- The L53-AA2 exploration well represented a potential new pool
discovery, outside the recently approved L53 South AA Production
Area, with an estimated combined 11.0 meters of possible oil pay as
interpreted in the AA and SH1 sandstones with testing pending.
- The L53-AA1 exploration well and the L53-AAST1 sidetrack
exploration well were abandoned after failing to encounter oil
bearing sands.
- The L53-BB1ST1 exploration well drilled in June encountered an
estimated combined 10.6 meters of possible oil pay as interpreted
in the AA/SH1, AA2 and BB sandstones with testing pending.
- The L53-DD8 well drilled in July encountered an estimated
combined 19.3 meters of oil pay as interpreted in the AA, BB and CC
sandstones.
- The L53-DD7 appraisal well is currently drilling. Once the rig
has completed the drilling of L53-DD7, well completions will be run
on L53-DD8, L53-BB1ST1 and (if warranted) L53-DD7 and
production/testing will commence immediately thereafter, and
include the L53-AA2 exploration well.
- Net to Pan Orient's 50.01% equity interest in the Thailand
Joint Venture, oil sales from Concession L53 in the first half of
2020 were 1,123 BOPD, with 932 BOPD from the L53-DD field.
- Adjusted funds flow from operations of $5.7 million in the first half of 2020 with
$2.0 million ($20.91 per barrel) in the second quarter and
$3.7 million ($34.11 per barrel) in the first quarter. The
realized price of Concession L53 crude oil averaged 98% of the
Brent reference price in the first half of 2020 and the Brent
reference price has partially recovered from US$18.38 in April
2020 to US$40.27 in
June 2020 and US$44.50 as at August
11th.
- Despite weak oil prices, Thailand had adjusted funds flow from
operations of $5.7 million in the
first half of 2020 to fund $5.2
million of Thailand
exploration and development activities. In addition, the Thailand
Joint Venture paid a $4.3 million
dividend to Pan Orient in January
2020 and Pan Orient's share of working capital and long-term
deposits in Thailand at
June 30, 2020 was $6.6 million.
Indonesia East Jabung
Production Sharing Contract (Pan Orient is non-operator with a 49%
ownership interest)
- The operator of the East Jabung Production Sharing Contract
("PSC") provided notice to the Government of Indonesia in January
2020 of withdrawal from the East Jabung PSC and is
determining final steps to be taken for formal approval of the
expiry from the GOI, including reclamation requirements. Pan Orient
is withdrawing from operations in Indonesia and the office in Jakarta was closed March 31, 2020.
- Activities of the Company in Indonesia are reported in 2020 as discontinued
operations. For the first half of 2020, discontinued operations in
Indonesia were $157 thousand of G&A expense, $155 thousand in realized and unrealized foreign
exchange losses on currency exchange rates since the end of 2019
and a $672 thousand recovery of
exploration expense resulting from adjustment of previously booked
capital expenditures at the East Jabung PSC.
Sawn Lake (Operated by Andora Energy Corporation, in which Pan
Orient has a 71.8% ownership)
- With the significantly lower prices for heavy oil and bitumen,
and the associated deterioration in the economics for commercial
expansion at Sawn Lake, there is no expected commercial development
at Sawn Lake in the current market. As a result, the Company
reported a non-cash net impairment charge of $80.2 million on Sawn Lake Exploration and
Evaluation assets at March 31,
2020.
- After the impairment of Sawn Lake recorded at March 31, 2020, no operating expenses or G&A
are capitalized. In the second quarter of 2020, Pan Orient reports
operating expense of $63 thousand
associated with the Sawn Lake suspended SAGD facility and
wellpair.
- On July 13, 2020 Andora
surrendered a 100% owned oil sands lease (nine sections) which was
not prospective and for which no contingent resources had been
assigned in the September 30, 2019
Contingent Resources Report.
Corporate
- Total corporate adjusted funds flow from operations (including
Pan Orient's 50.01% equity interest in the Thailand Joint Venture)
of $5.6 million ($0.10 per share) in the first half of 2020, with
$1.2 million ($0.02 per share) in the second quarter of 2020.
The decrease from $4.4 million
($0.08 per share) in the first
quarter of 2020 is largely due to lower crude oil prices in
Thailand, foreign exchange loss of
$0.9 million in Canada on cash holdings denominated in US
dollars, and partially offset by a $0.7
million recovery of impairment expenses previously recorded
for Indonesia.
- The loss attributable to common shareholders for the first half
of 2020 was $58.2 million
($1.09 loss per share), primarily
resulting from a net $57.6 million
impairment charge for the Sawn Lake, Alberta Exploration and
Evaluation assets at March 31, 2020.
The loss attributable to common shareholders for the second quarter
of 2020 was $1.0 million
($0.02 loss per share).
- The normal course issuer bid for the period of May 16, 2019 to May 16,
2020 expired during the second quarter. Pan Orient had
repurchased 2,190,900 common shares at an average price of
$0.78 per share, with 1,536,500
common shares repurchased in 2020 at an average price of
$0.59 per share.
- Pan Orient renewed the normal course issuer bid and is
authorized to purchase, for cancellation, up to 4,228,734 of its
common shares (10% of the public float) during the period of
May 21, 2020 to May 20, 2021. To date, Pan Orient has repurchased
785,000 common shares at an average price of $0.67 per share. As at August 11, 2020 there are 52.2 million common
shares outstanding.
- Pan Orient has maintained a strong financial position with
working capital and non-current deposits of $24.8 million and no long-term debt at
June 30, 2020. In addition, the
Thailand Joint Venture has $6.6
million in working capital and long-term deposits, net to
Pan Orient's 50.01% equity interest, and Thailand funds flow from operations are
expected to fund the remaining 2020 Thailand exploration and
development activities.
OUTLOOK
THAILAND
Concession L53 Onshore (Pan Orient Energy (Siam) Ltd., in which
Pan Orient has 50.01% ownership)
Once drilling of the L53-DD7 appraisal well is completed, the
L53-DD8, L53-BB1, L53-AA2 and (if warranted) L53-DD7 wells will be
completed and put on production/testing. Approval of the new
South AA Production Area was received July
17, 2020, and the L53-DD5ST1 well will be brought back into
production, after a conversion from beam pump to electrical
submersible pump.
The L53AC-E exploration well has been deferred until late 2020
and the exact timing for drilling this well will be dependent on
oil prices and the global COVID-19 pandemic situation.
CANADA
Corporate
Pan Orient will maintain a strong cash position during these
uncertain times. The focus for the remainder of 2020 remains
completion of the exploration drilling and development activities
in Thailand prior to the "reserved
area" exploration lands expiring in January
2021, and to finance these activities with funds flow from
operations generated in Thailand.
COVID-19 Coronavirus
The operations in Thailand of
Pan Orient Energy (Siam) Ltd. ("POS") continue to be somewhat
affected by the worldwide COVID-19 coronavirus pandemic. The
Thailand government imposed a
state of emergency in late March, giving it wide-ranging powers to
address the crisis. Domestic travel restrictions have now
been eased but a travel ban on most foreigners entering
Thailand remains in effect. New
confirmed cases of COVID-19 in Thailand peaked at the end of March and early
April, followed a week or so later by a peak in deaths, and have
remained very low since then. There have been only four
deaths since the end of April. Overall, the infection and death
rate has been much lower in Thailand than in most western nations.
Prudent measures have been taken by POS to help protect the
health and safety of staff, which are of paramount
importance. POS was fortunate to have completed the first
phase of the 2020 Thailand drilling program before the real effects
of the pandemic were felt. The second phase of the drilling
program commenced in late June.
POS and Pan Orient are well-positioned to withstand these
unprecedented events. The Company is optimistic about a slow
return to normal operations and less volatile market conditions but
the outlook for world oil prices remains challenging.
Pan Orient is a Calgary,
Alberta based oil and gas exploration and production company
with operations currently located onshore Thailand and Western
Canada.
This news release contains forward-looking information.
Forward-looking information is generally identifiable by the
terminology used, such as "expect", "believe", "estimate",
"should", "anticipate" and "potential" or other similar
wording. Forward-looking information in this news release
includes, but is not limited to, references express or implied to
renewal, extension or termination of oil concessions and production
sharing contracts; other regulatory approvals; well drilling
programs and drilling and testing plans; estimates of reserves and
potentially recoverable resources, information on future production
and project start-ups, and negotiation, agreement, closing and
financing and other terms of farmout and other transactions;
potential purchases of common shares under the normal course issuer
bid; sufficiency of financial resources; and review of asset
portfolio and defining opportunities and strategies. By their
very nature, the forward-looking statements contained in this news
release require Pan Orient and its management to make assumptions
that may not materialize or that may not be accurate. The
forward-looking information contained in this news release is
subject to known and unknown risks and uncertainties and other
factors, which could cause actual results, expectations,
achievements or performance to differ materially, including without
limitation: imprecision of reserves estimates and estimates of
recoverable quantities of oil, changes in project schedules,
operating and reservoir performance, the effects of weather and
climate change, the results of exploration and development drilling
and related activities, demand for oil and gas, commercial
negotiations, other technical and economic factors or revisions and
other factors, many of which are beyond the control of Pan
Orient. Although Pan Orient believes that the expectations
reflected in its forward-looking statements are reasonable, it can
give no assurances that the expectations of any forward-looking
statements will prove to be correct.
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.
Financial and
Operating Summary
|
Three Months
Ended
June 30,
|
Six Months
Ended
June 30,
|
% Change
|
(thousands of
Canadian dollars except where indicated)
|
2020
|
2019
|
2020
|
2019
|
FINANCIAL
|
|
|
|
|
|
Financial
Statement Results – Excluding 50.01% Interest in Thailand Joint
Venture (Note 1)
|
|
|
|
|
|
Net income (loss)
attributed to common shareholders
|
(1,034)
|
1,287
|
(58,151)
|
438
|
|
|
Per share – basic and
diluted
|
$
(0.02)
|
$ 0.02
|
$
(1.09)
|
$ 0.01
|
|
Cash flow used in
operating activities (Note 2 & 3)
|
(591)
|
(321)
|
(990)
|
(1,153)
|
-14%
|
|
Per share – basic and
diluted
|
$
(0.01)
|
$
(0.01)
|
$
(0.02)
|
$ (0.02)
|
-14%
|
Cash flow from (used
in) investing activities (Note 2 & 3)
|
-
|
(174)
|
4,202
|
(275)
|
-1628%
|
|
Per share – basic and
diluted
|
$
0.00
|
$ (0.00)
|
$
0.08
|
$ (0.01)
|
-1628%
|
Cash flow used in
financing activities (Note 2 & 3)
|
(743)
|
(124)
|
(1,442)
|
(124)
|
1063%
|
|
Per share – basic and
diluted
|
$
(0.01)
|
$ (0.00)
|
$
(0.03)
|
$ (0.00)
|
1063%
|
Change in cash and
cash equivalents from discontinued operations (Note 3)
|
(181)
|
(424)
|
(707)
|
214
|
-429%
|
Working
capital
|
24,193
|
28,304
|
24,193
|
28,304
|
-15%
|
Working capital &
non-current deposits
|
24,801
|
28,902
|
24,801
|
28,902
|
-14%
|
Long-term
debt
|
-
|
-
|
-
|
-
|
0%
|
Shares outstanding
(thousands)
|
52,175
|
54,837
|
52,175
|
54,837
|
-5%
|
Capital Commitments
(Note 4)
|
719
|
2,035
|
719
|
2,035
|
-65%
|
Working Capital and
Non-current Deposits
|
|
|
|
|
|
Beginning of period –
Excluding Thailand Joint Venture
|
26,386
|
31,566
|
22,158
|
33,139
|
-33%
|
|
Adjusted funds flow
used in continued operations (Note 3 & 6)
|
(1,523)
|
(967)
|
(464)
|
(2,139)
|
-78%
|
|
Adjusted funds flow
from Indonesia discontinued operations (Note 3)
|
703
|
-
|
360
|
-
|
0%
|
|
Consolidated capital
expenditures (Note 7)
|
-
|
(1,213)
|
(85)
|
(1,918)
|
-96%
|
|
Amounts (advanced to)
received from Thailand Joint Venture
|
(8)
|
56
|
(10)
|
169
|
-106%
|
|
Dividend received
from Thailand Joint Venture
|
-
|
-
|
4,300
|
-
|
0%
|
|
Finance lease
payments
|
(10)
|
(28)
|
(131)
|
(54)
|
143%
|
|
Normal course issuer
bid
|
(733)
|
(122)
|
(1,422)
|
(122)
|
1066%
|
|
Effect of foreign
exchange
|
(14)
|
(390)
|
95
|
(173)
|
155%
|
End of period -
Excluding Thailand Joint Venture
|
24,801
|
28,902
|
24,801
|
28,902
|
-14%
|
Pan Orient 50.01%
interest in Thailand Joint Venture Working Capital and Non-
Current Deposits
|
6,553
|
11,445
|
6,553
|
11,445
|
-43%
|
Economic Results –
Including 50.01% Interest in Thailand Joint Venture
|
|
|
|
|
|
Total corporate
adjusted funds flow from (used in) operations by region (Note
6)
|
|
|
|
|
|
|
Canada
|
(1,515)
|
(912)
|
(450)
|
(2,091)
|
-78%
|
|
Thailand (Note
8)
|
(8)
|
(8)
|
(14)
|
(16)
|
-13%
|
|
From continued
operations
|
(1,523)
|
(920)
|
(464)
|
(2,107)
|
-78%
|
|
Indonesia –
Discontinued Operations
|
703
|
(47)
|
360
|
(32)
|
1225%
|
|
Adjusted funds flow
used in operations (excl. Thailand Joint Venture)
|
(820)
|
(967)
|
(104)
|
(2,139)
|
-95%
|
|
Share of Thailand
Joint Venture (Note 1 & 5)
|
2,025
|
6,656
|
5,713
|
9,416
|
-39%
|
Total corporate
adjusted funds flow from operations
|
1,205
|
5,689
|
5,609
|
7,277
|
-23%
|
|
Per share –
basic and diluted
|
$
0.02
|
$
0.10
|
$
0.10
|
$
0.13
|
-21%
|
Capital Expenditures
– Petroleum and Natural Gas Properties (Note 7)
|
|
|
|
|
|
Canada
|
-
|
122
|
85
|
246
|
-65%
|
Indonesia –
Discontinued Operations
|
-
|
1,091
|
-
|
1,672
|
-100%
|
Consolidated capital
expenditures (excl. Thailand Joint Venture)
|
-
|
1,213
|
85
|
1,918
|
-96%
|
Share of Thailand
Joint Venture capital expenditures
|
1,415
|
1,633
|
5,194
|
4,311
|
20%
|
Total capital
expenditures (incl. Thailand Joint Venture & discontinued
ops)
|
1,415
|
2,846
|
5,279
|
6,229
|
-15%
|
Investment in
Thailand Joint Venture
|
|
|
|
|
|
Beginning of
period
|
30,209
|
35,180
|
34,127
|
34,504
|
-1%
|
|
Net income (loss)
from Joint Venture
|
(65)
|
1,699
|
491
|
2,353
|
-79%
|
|
Other comprehensive
gain from Joint Venture
|
557
|
238
|
381
|
373
|
2%
|
|
Dividend
paid
|
-
|
-
|
(4,300)
|
-
|
0%
|
|
Amounts (received
from) advanced to Joint Venture
|
8
|
(57)
|
10
|
(170)
|
-106%
|
End of
period
|
30,709
|
37,060
|
30,709
|
37,060
|
-17%
|
|
Three Months
Ended
June 30,
|
Six Months
Ended
June 30,
|
% Change
|
(thousands of
Canadian dollars except where indicated)
|
2020
|
2019
|
2020
|
2019
|
Thailand
Operations
|
|
|
|
|
|
Economic Results –
Including 50.01% Interest in Thailand Joint
Venture (Note 5)
|
|
|
|
|
|
Oil sales
(bbls)
|
96,466
|
97,537
|
204,417
|
143,137
|
43%
|
Average daily oil
sales (BOPD) by Concession L53
|
1,060
|
1,072
|
1,123
|
791
|
42%
|
Average oil sales
price, before transportation (CDN$/bbl)
|
$
40.49
|
$
81.57
|
$
52.71
|
$
81.12
|
-35%
|
Reference Price
(volume weighted) and differential
|
|
|
|
|
|
|
Crude oil (Brent
$US/bbl)
|
$
28.67
|
$
67.95
|
$
39.38
|
$
66.13
|
-40%
|
|
Exchange Rate
$US/$Cdn
|
1.40
|
1.37
|
1.37
|
1.37
|
0%
|
|
Crude oil (Brent
$Cdn/bbl)
|
$
40.05
|
$
92.99
|
$
53.90
|
$
90.52
|
-40%
|
|
Sale price / Brent
reference price
|
101%
|
88%
|
98%
|
90%
|
9%
|
Adjusted funds flow
from (used in) operations (Note 6)
|
|
|
|
|
|
|
Crude oil
sales
|
3,906
|
7,956
|
10,775
|
11,612
|
-7%
|
|
Government
royalty
|
(195)
|
(417)
|
(549)
|
(595)
|
-8%
|
|
Transportation
expense
|
(208)
|
(238)
|
(460)
|
(341)
|
35%
|
|
Operating
expense
|
(772)
|
(477)
|
(1,512)
|
(926)
|
63%
|
|
Field
netback
|
2,731
|
6,824
|
8,254
|
9,750
|
-15%
|
|
General and
administrative expense (Note 8)
|
(220)
|
(217)
|
(459)
|
(413)
|
11%
|
|
Interest
income
|
6
|
22
|
6
|
22
|
-73%
|
|
Foreign exchange
gain
|
23
|
19
|
29
|
41
|
-29%
|
|
Current income
tax
|
(523)
|
-
|
(2,131)
|
-
|
0%
|
|
Thailand - Adjusted
funds flow from operations
|
2,017
|
6,648
|
5,699
|
9,400
|
-39%
|
Adjusted funds flow
from (used in) operations / barrel (CDN$/bbl) (Note
6)
|
|
|
|
|
|
|
Crude oil
sales
|
$
40.49
|
$
81.57
|
$
52.71
|
$
81.12
|
-35%
|
|
Government
royalty
|
(2.02)
|
(4.28)
|
(2.69)
|
(4.16)
|
-35%
|
|
Transportation
expense
|
(2.16)
|
(2.44)
|
(2.25)
|
(2.38)
|
-6%
|
|
Operating
expense
|
(8.00)
|
(4.89)
|
(7.40)
|
(6.47)
|
14%
|
|
Field
netback
|
$
28.31
|
$
69.96
|
$
40.38
|
$
68.12
|
-41%
|
|
General and
administrative expense (Note 8)
|
(2.28)
|
(2.22)
|
(2.25)
|
(2.89)
|
-22%
|
|
Interest
Income
|
0.06
|
0.23
|
0.03
|
0.15
|
-81%
|
|
Foreign exchange
gain
|
0.24
|
0.19
|
0.14
|
0.29
|
-50%
|
|
Current income
tax
|
(5.42)
|
-
|
(10.42)
|
-
|
0%
|
|
Thailand – Adjusted
funds flow from operations
|
$
20.91
|
$
68.16
|
$
27.88
|
$
65.67
|
-58%
|
Government royalty as
percentage of crude oil sales
|
5%
|
5%
|
5%
|
5%
|
0%
|
Income tax & SRB
as percentage of crude oil sales
|
13%
|
-
|
20%
|
-
|
20%
|
As percentage of
crude oil sales
|
|
|
|
|
|
|
Expenses -
transportation, operating, G&A and other
|
18%
|
11%
|
18%
|
14%
|
4%
|
|
Government royalty,
SRB and income tax
|
28%
|
5%
|
28%
|
5%
|
23%
|
|
Adjusted funds flow
from operations, before interest income
|
54%
|
84%
|
54%
|
81%
|
-27%
|
Wells
drilled
|
|
|
|
|
|
|
Gross
|
1
|
-
|
5
|
2
|
150%
|
|
Net
|
0.5
|
-
|
2.5
|
1.0
|
150%
|
Financial
Statement Presentation
Results – Excl.
50.01% Interest in Thailand Joint Venture (Note 1)
|
|
|
|
|
|
|
General and
administrative expense (Note 8)
|
(8)
|
(8)
|
(14)
|
(16)
|
-13%
|
|
Adjusted funds flow
used in consolidated operations
|
(8)
|
(8)
|
(14)
|
(16)
|
-13%
|
Adjusted fund flow
Included in Investment in Thailand Joint Venture
|
|
|
|
|
|
|
Net income (loss)
from Thailand Joint Venture
|
(65)
|
1,699
|
491
|
2,353
|
-79%
|
|
Add back non-cash
items in net income
|
2,090
|
4,957
|
5,222
|
7,063
|
-26%
|
|
Adjusted funds flow
from Thailand Joint Venture
|
2,025
|
6,656
|
5,713
|
9,416
|
-39%
|
Thailand – Economic
adjusted funds flow from operations (Note 5)
|
2,017
|
6,648
|
5,699
|
9,400
|
-39%
|
|
Three Months
Ended
June 30,
|
Six Months
Ended
June 30,
|
% Change
|
(thousands of
Canadian dollars except where indicated)
|
2020
|
2019
|
2020
|
2019
|
Canada
Operations
|
|
|
|
|
|
Interest
income
|
23
|
86
|
132
|
153
|
-14%
|
General and
administrative expenses (Note 8)
|
(507)
|
(467)
|
(1,069)
|
(1,258)
|
-15%
|
Operating expense
(Note 9)
|
(63)
|
-
|
(63)
|
-
|
|
Stock based
compensation on restricted share units (note 10)
|
(75)
|
-
|
(75)
|
-
|
|
Realized foreign
exchange gain (Note 11)
|
1
|
1
|
1
|
1
|
0%
|
Unrealized foreign
exchange gain (loss) (Note 11)
|
(894)
|
(532)
|
624
|
(987)
|
-163%
|
|
Canada – Adjusted
funds flow used in operations
|
(1,515)
|
(912)
|
(450)
|
(2,091)
|
-85%
|
Indonesia -
Discontinued Operations
|
|
|
|
|
|
General and
administrative expense (Note 8)
|
(96)
|
(54)
|
(157)
|
(105)
|
50%
|
Recovery of
exploration expense (Note 12)
|
672
|
-
|
672
|
-
|
-
|
Unrealized foreign
exchange gain (loss)
|
127
|
7
|
(155)
|
73
|
-312%
|
|
Indonesia – Adjusted
funds flow from (used in) operations
|
703
|
(47)
|
360
|
(32)
|
1225%
|
(1)
|
Pan Orient holds a
50.01% equity interest in Pan Orient Energy (Siam) Ltd. as a joint
arrangement where the Company
shares joint control with the 49.99% equity interest holder.
The resulting joint arrangement is classified as a Joint
Venture
under IFRS 11 and is accounted for using the equity method of
accounting where Pan Orient's 50.01% equity interest in the
assets, liabilities, working capital, operations and capital
expenditures of Pan Orient Energy (Siam) Ltd. are recorded in
Investment in Thailand Joint Venture.
|
|
|
(2)
|
As set out in the
Consolidated Statements of Cash Flows in the unaudited Consolidated
Financial Statements of Pan
Orient Energy Corp.
|
|
|
(3)
|
The East Jabung PSC
expired in January 2020 and the Company is withdrawing from
operations in Indonesia. The
operation in Indonesia for accounting purposes going forward is
considered a discontinued operation and the amounts
presented in 2019 are updated for comparative purposes.
|
|
|
(4)
|
Refer to Commitments
note disclosure of the June 30, 2020 and June 30, 2019 Interim
Condensed Consolidated Financial
Statements.
|
|
|
(5)
|
For the purpose of
providing more meaningful economic results from operations for
Thailand, the amounts presented
include 50.01% of results of the Thailand Joint Venture. Pan
Orient has a 50.01% ownership interest in Pan Orient Energy
(Siam) Ltd., but does not have any direct interest in, or control
over, the crude oil reserves, operations or working capital of
on-shore Concession L53.
|
|
|
(6)
|
Total corporate
adjusted funds flow from (used in) operations is cash flow from
operating activities prior to changes in non-
cash working capital, unrealized foreign exchange gain or loss plus
the corresponding amount from Pan Orient's 50.01%
interest in the Thailand Joint Venture which is recorded in Joint
Venture for financial statement purposes. This measure is
used by management to analyze operating performance and
leverage. Adjusted funds flow as presented does not have
any
standardized meaning prescribed by IFRS and therefore it may not be
comparable with the calculation of similar measures
of other entities. Adjusted funds flow is not intended to
represent operating cash flow or operating profits for the period
nor
should it be viewed as an alternative to cash flow from operating
activities, net earnings or other measures of financial
performance calculated in accordance with IFRS.
|
|
|
(7)
|
Cost of capital
expenditures excluded decommissioning costs and the impact of
changes in foreign exchange.
|
|
|
(8)
|
General &
administrative expenses, excluding non-cash accretion on
decommissioning provision and lease liabilities. The
nominal amount of G&A shown in the first half of 2020 and 2019
for Thailand operations related to G&A of the holding
company of Pan Orient Energy (Siam) Ltd.
|
|
|
(9)
|
Operating expense
related to Andora's suspended demonstration project facility and
well pair at Sawn Lake Central.
These expenses were previously capitalized prior to the E&E
impairment recorded during the first quarter of 2020.
|
|
|
(10)
|
On May 19, 2020, the
Company granted 1,050,000 restricted share units ("RSUs") to
directors, senior management,
employees and a consultant. The amount represents the accrual
of stock-based compensation expenses.
|
|
|
(11)
|
Realized and
unrealized foreign exchange gain or loss mainly related to the U.S.
dollars denominated cash balances held
in Canada.
|
|
|
(12)
|
Adjustment to
previously booked capital expenditures at East Jabung
PSC.
|
|
|
(13)
|
Tables may not add
due to rounding.
|
SOURCE Pan Orient Energy Corp.