香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因 本公佈全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 本公佈僅供參考，並不構成收購、購買或認購陽光油砂有限公司證券之邀請或要約。 SUNSHINE OILSANDS LTD. 陽光油砂有限公司* （一家根據加拿大阿爾伯塔省商業公司法註冊成立的有限公司） （香港聯交所：2012） 截至二零二二年十二月三十一日止第四季度及年度業績公佈 財務數據摘要 截至二零二二年十二月三十一日止十二個月，全面虧損及歸屬於本公司持有人的應佔總虧損約為 6,600 萬加元，相 較二零二一年全面收益及本公司持有人應佔收益總額約 150 萬加元。 於截至二零二二年十二月三十一日和二零二一年十二月三十一日，本公司節選財務數字如下： 截至十二月三十一日止十二個月 二零二二年 二零二一年 歸屬於本公司持有人的全面(虧損)/收益總額（千加元） (66,042) 1,475 元稀）釋油 砂平均銷量（桶/日） 516.7 - 二零二二年 二零二一年 （千加元） 十二月三十一日 十二月三十一日 現金和 ...

Financial Performance - The company reported a net loss attributable to equity holders of CAD 26.655 million for Q3 2022, compared to a net loss of CAD 46.173 million in Q2 2022[11]. - The company’s operating loss for Q3 2022 was CAD 4.030 million, a decrease from CAD 5.002 million in Q2 2022[11]. - The net operating cash flow for the three months ended September 30, 2022, was a loss of $1,814,000, compared to a loss of $1,843,000 in the same period of 2021[12]. - The company reported a significant increase in realized oil sands heavy oil revenue, primarily due to the recovery of production at the West Ells project[22]. - The company experienced a depletion of CAD 1.8 million for the three and nine months ended September 30, 2022, compared to zero for the same periods in 2021, due to increased oil sands production[35]. - The company recognized a total impairment reversal amount of CAD 191.8 million for the nine months ended September 30, 2022, primarily due to an increase in oil price forecasts by independent reservoir engineers[39]. Production and Sales - The average oil sands heavy oil production for the three and nine months ended September 30, 2022, was 878 barrels per day and 296 barrels per day, respectively[6]. - The average sales volume of diluted oil sands heavy oil for the same periods was 989.7 barrels per day and 351.4 barrels per day[6]. - For the three months ended September 30, 2022, the realized oil sands heavy oil revenue was $4,671,000, compared to $0 in the same period of 2021, representing a significant increase[12]. - The average production of oil sands heavy oil for the three months ended September 30, 2022, was 878 barrels per day, up from 0 barrels per day in the same period of 2021[15]. - The average sales volume of oil sands heavy oil for the three months ended September 30, 2022, was 802 barrels per day, compared to 0 barrels per day in the same period of 2021, indicating a recovery in production and sales[16]. - The oil sales revenue (net of royalties) for the three months ended September 30, 2022, was $7,089,000, compared to $0 in the same period of 2021, reflecting increased production and sales[17]. Costs and Expenses - The company’s financing costs for Q3 2022 were CAD 13.003 million, compared to CAD 12.166 million in Q2 2022[11]. - The cost of diluent for the three months ended September 30, 2022, was $3,094,000, reflecting the costs associated with mixing diluent with heavy oil[23]. - The average cost per barrel for diluent was $33.98 for the three months ended September 30, 2022, compared to not applicable in the same period of 2021[23]. - Total operating costs increased from CAD 1.841 million and CAD 5.268 million in the same periods last year to CAD 4.030 million and CAD 12.436 million, respectively, primarily due to the resumption of production at West Ells[27][28]. - General and administrative costs for the three and nine months ended September 30, 2022, were CAD 2.5 million and CAD 8.7 million, respectively, compared to CAD 2.1 million and CAD 5.0 million last year[29]. - The company has resumed production at West Ells, which has led to increased fixed non-energy costs and energy costs[28]. Assets and Liabilities - Total assets as of September 30, 2022, amounted to CAD 944.563 million, an increase from CAD 877.108 million in the previous quarter[11]. - The company’s working capital deficit as of September 30, 2022, was CAD 499.3 million, compared to CAD 93 million as of December 31, 2021[41]. - The company's debt-to-asset ratio was 68% as of September 30, 2022, down from 77% as of December 31, 2021[46]. - The company has incurred a total of CAD 46.6 million in unsecured permitted debt as of September 30, 2022[42]. Tax and Regulatory Matters - The company's total available tax deductions amounted to approximately CAD 1.65 billion, with unrecognized tax losses expiring between 2033 and 2042[40]. - The company is actively negotiating a settlement plan regarding municipal property taxes amounting to CAD 13.4 million, along with overdue penalties of CAD 10.9 million[42]. Cash Flow and Financing - The company’s cash position as of September 30, 2022, was CAD 900,000[5]. - The cash flow used in operating activities for the three months ended September 30, 2022, was (5.52 million CAD), compared to 7.05 million CAD for the same period in 2021[64]. - For the nine months ended September 30, 2022, the cash flow used in operating activities was (16.09 million CAD), compared to 2.18 million CAD for the same period in 2021[64]. Shareholder Information - As of September 30, 2022, the company had 243,478,681 issued Class "A" common shares[76]. - The company reported no dividends declared or paid for the nine months ended September 30, 2022, consistent with the previous year[79]. Corporate Governance - The company has adopted the corporate governance code and standard code for securities transactions as per Hong Kong Stock Exchange regulations[68][69]. - The company has not identified any significant changes in internal controls over financial reporting that would materially affect the financial statements as of September 30, 2022[60]. - The company’s internal controls over financial reporting were assessed as effective as of September 30, 2022[59]. Future Outlook - The company plans to enter the second phase of the West Ells project, which aims to increase production by an additional 5,000 barrels per day once financing is secured[4]. - The company is focusing on cost control and will restart activities in the Muskwa and Godin areas with joint ventures[82]. - The West Ells project has fully resumed production, and the company will continue to monitor the developments in the crude oil market and the COVID-19 pandemic in North America[82].

Financial Performance - For Q2 2022, the net profit attributable to shareholders was approximately CAD 46.2 million, a 303% increase compared to a net loss of CAD 22.8 million in Q2 2021[3]. - The company reported a net loss of CAD 46.1 million for Q2 2022, compared to a net loss of CAD 56.2 million in Q1 2022[13]. - For the three months ended June 30, 2022, the company reported a net loss of CAD 4.8 million, compared to a net loss of CAD 1.6 million for the same period in 2021[14]. - As of June 30, 2022, the company’s net profit reported was CAD 102.3 million, including non-controlling interests[38]. - Net income for the six months ended June 30, 2022, was CAD 102,331 thousand, a significant increase from a net loss of CAD 25,477 thousand in the same period of 2021[77]. - The company reported a net loss attributable to shareholders of approximately $102.48 million CAD for the year, compared to a loss of $25.42 million CAD in the previous year[132]. Production and Sales - As of June 30, 2022, the average diluted oil sands production was 53.5 barrels per day, compared to 0 barrels per day in the same period last year[4]. - The average diluted oil sands heavy oil sales for Q2 2022 were 30 barrels per day, with total oil sales of 589 barrels[13]. - The average sales of oil sands heavy oil increased to 30 barrels per day for the three months ended June 30, 2022, compared to 0 barrels per day in the same period of 2021[16]. - The revenue from oil sands heavy oil for the three months ended June 30, 2022, was CAD 589,000, a significant increase from CAD 0 in the same period of 2021[17]. - The total oil sales (net of royalties) for the six months ended June 30, 2022, increased to CAD 600,000 from CAD 100,000 in the same period of 2021[18]. Costs and Expenses - The company’s operating costs for Q2 2022 were CAD 5.0 million, up from CAD 3.4 million in Q1 2022[13]. - Operating costs increased to CAD 5,002,000 for the three months ended June 30, 2022, compared to CAD 1,602,000 in the same period of 2021, reflecting a significant rise due to the resumption of production at West Ells[25]. - General and administrative costs rose to CAD 2,496,000 for the three months ended June 30, 2022, from CAD 1,279,000 in the same period of 2021, primarily due to increased labor demands during the resumption preparations[26]. - The company’s total operating costs for the six months ended June 30, 2022, reached CAD 8,406,000, compared to CAD 3,427,000 in the same period of 2021, indicating a substantial increase[25]. - The company incurred a diluent cost of CAD 294,000 for the three months ended June 30, 2022, compared to CAD 0 in the same period of 2021[22]. Assets and Liabilities - The total assets as of June 30, 2022, were CAD 877.1 million, an increase from CAD 812.3 million in Q1 2022[13]. - The company’s equity attributable to shareholders increased to CAD 278.7 million as of June 30, 2022, from CAD 232.6 million in Q1 2022[13]. - The company’s total liabilities to total assets ratio improved to 68% as of June 30, 2022, from 77% as of December 31, 2021[38]. - The company’s current liabilities rose to CAD 63,051 thousand as of June 30, 2022, compared to CAD 106,365 thousand as of December 31, 2021, showing a decrease of approximately 40.7%[75]. - The company’s total liabilities amounted to $1,242,045 thousand as of June 30, 2022, reflecting an increase from previous periods[80]. Cash Flow and Financing - The operating cash flow for the six months ended June 30, 2022, was a net loss of CAD 8.2 million, compared to a net loss of CAD 3.3 million for the same period in 2021[14]. - The company’s working capital deficit as of June 30, 2022, was CAD 57.625 million, improved from CAD 93.005 million as of December 31, 2021[37]. - The company entered into an interest waiver agreement, resulting in a total waived interest of USD 31.5 million for the year 2022[34]. - The company is actively negotiating with RMWB regarding a municipal property tax claim of CAD 13 million, along with overdue penalties of CAD 9.8 million[35]. - The company requires refinancing or restructuring of current debt and additional financing to meet its short-term operational cash needs[88]. Governance and Compliance - The company has adopted the corporate governance code and standard code for securities trading by directors as per the Hong Kong Stock Exchange regulations[55][56]. - The company’s internal controls over financial reporting were assessed as effective as of June 30, 2022, providing reasonable assurance regarding the reliability of financial statements[47]. - No significant changes were identified in the internal controls that could materially affect the financial reporting during the six months ended June 30, 2022[48]. - The board approved the interim consolidated financial statements on August 11, 2022, Calgary time[155]. Strategic Initiatives - The company plans to enter the second phase of the West Ells project, which aims to increase production by an additional 5,000 barrels per day once financing is secured[7]. - The company will focus on cost control and closely monitor the developments in the crude oil market moving forward[74]. - The company is focusing on market expansion and new product development as part of its strategic initiatives moving forward[161]. - The company continues to collaborate with joint venture partners to restart activities in the Muskwa and Godin areas[74]. Legal and Tax Matters - The company is involved in a lawsuit claiming CAD 40 million plus interest at 15% per annum, related to a share purchase agreement from January 2011[149]. - The cumulative property tax receivable from the RMWB as of June 30, 2022, is CAD 13 million, with an additional CAD 9.8 million in overdue penalties[150]. - The company has made provisions for various claims and legal proceedings, with a recorded amount of CAD 820,000 (equivalent to USD 640,000) as of June 30, 2022[151].

Financial Performance - For the three months ended March 31, 2022, Sunshine Oilsands reported a net loss attributable to equity holders of CAD 56.311 million, compared to a net income of CAD 0.632 million in the previous quarter[5]. - The company reported an operating cash flow loss of CAD 3.410 million for the quarter, compared to a loss of CAD 1.724 million in the same period last year[6]. - The company reported zero depletion expense for the three months ended March 31, 2022, due to the temporary suspension of production since March 31, 2020[17]. - For the three months ended March 31, 2022, the company's cash flow from operating activities was $(6,854) thousand, compared to $(3,303) thousand for the same period in 2021, indicating a significant increase in cash outflow[39]. - The net cash used in operating activities was $(4,414) thousand for the three months ended March 31, 2022, compared to $(2,820) thousand for the same period in 2021, reflecting a worsening operational performance[39]. - The company did not declare or pay any dividends for the three months ended March 31, 2022, consistent with the same period in 2021[50]. Production and Operations - Average production of oil sands heavy oil from the West Ells project was 0 barrels per day for the quarter, down from 22 barrels per day in the same period last year, due to a temporary shutdown[9]. - The company completed the preparatory work for the resumption of the West Ells project and announced full production resumption on April 11, 2022[3]. - The West Ells project has fully resumed production as of the date of this announcement[53]. Costs and Expenses - The company recorded operating costs of CAD 3.404 million for the quarter, an increase from CAD 1.825 million in the same period last year, primarily due to the resumption of production at the West Ells project[12]. - General and administrative expenses increased to CAD 3.650 million for the quarter, up from CAD 1.579 million in the same period last year, mainly due to increased municipal charges[15]. - The company’s financing costs rose to CAD 11.631 million for the quarter, compared to CAD 9.392 million in the previous quarter[5]. - The financing cost for the three months ended March 31, 2022, was CAD 11.6 million, a decrease of CAD 1.8 million compared to CAD 13.4 million for the same period in 2021[16]. Assets and Liabilities - The total assets of Sunshine Oilsands increased to CAD 812.323 million as of March 31, 2022, compared to CAD 755.724 million in the previous quarter[5]. - As of March 31, 2022, the company's working capital deficit was CAD 100.54 million, compared to CAD 93.01 million as of December 31, 2021[19]. - The company's total liabilities to total assets ratio was 71% as of March 31, 2022, down from 77% as of December 31, 2021[24]. - The company has unencumbered debt of USD 37.1 million (equivalent to CAD 46.3 million) as of March 31, 2022[20]. Tax and Legal Matters - The company has received a municipal property tax payment notice of CAD 12.72 million from the RMWB for the years 2016 to 2021, along with overdue penalties of CAD 9.82 million[22]. - The company has made provisions for various claims and legal proceedings, with CAD 0.82 million (equivalent to USD 1.03 million) in liens arising from normal business operations as of September 30, 2021[23]. Shareholder Information - As of March 31, 2022, the company had 243,478,681 shares of Class "A" common stock issued[49]. - The weighted average fair value of stock options granted during the three months ended March 31, 2022, was 0.6 CAD, compared to 0.012 CAD for the same period in 2021[44]. Internal Controls and Risks - The company has not identified any significant changes in internal controls over financial reporting that would materially affect the financial statements for the three months ended March 31, 2022[36]. - The company’s internal controls over financial reporting were assessed as effective as of March 31, 2022[35]. - The company continues to face significant risks and uncertainties in its resource exploration, development, and refining business[33]. - The company emphasizes that actual results may differ significantly from forward-looking statements due to various risks and uncertainties[40]. Strategic Focus - The company continues to focus on cost control and closely monitor the developments in the crude oil market and the COVID-19 pandemic in North America[53]. - The company plans to reactivate activities in the Muskwa and Godin areas in conjunction with joint ventures as international oil prices recover[53]. Securities Transactions - The company has not engaged in any purchases, sales, or redemptions of its listed securities during the first quarter of 2022[48]. - The company has not entered into any forward exchange contracts during the three months ended March 31, 2022[25].

Financial Performance - The net loss for the twelve months ended December 31, 2021, was CAD 7.6 million, compared to a net loss of CAD 9.9 million for the same period in 2020[9]. - The operating cash flow net loss for the three months ended December 31, 2021, was CAD 2.5 million, compared to a net loss of CAD 1.4 million for the same period in 2020[9]. - The company reported a significant increase in operating netback losses, rising from CAD 115.01 per barrel to CAD 3,119.41 per barrel for the twelve months ended December 31, 2021[9]. - The company reported a net profit of approximately CAD 1.1 million for the year ended December 31, 2021, down from CAD 2 million in 2020[73]. - The company reported a total available reserves for distribution to shareholders of approximately CAD 176 million as of December 31, 2021, compared to CAD 165 million in 2020[98]. - The company’s financial performance and comprehensive loss for the fiscal year ending December 31, 2021, are detailed in the annual report[94]. - The company’s total revenue for the twelve months ending December 31, 2021, was CAD 4.18 million, compared to CAD 1.84 million in 2020[169]. - The company reported a capital expenditure of CAD 1.43 million in Q4 2021, a notable increase from CAD 460,000 in Q3 2021[157]. - The company reported a total interest expense of CAD 41.13 million for the twelve months ended December 31, 2021, compared to CAD 20.08 million in 2020[179]. Production and Operations - The average production of oil sands heavy oil for the year ended December 31, 2021, was 0 barrels per day, with an average sales volume of diluted oil sands at 7 barrels per day for the same period[7]. - The company reported a significant decline in oil sands heavy oil sales, averaging 0 barrels per day in Q4 2021, down from 236 barrels per day in the same period of 2020[164]. - The company has completed the preparatory work for resuming production at the West Ells project and is currently in the steam injection pre-heating phase, expecting to resume production soon[162]. - The design capacity of the West Ells project is 5,000 barrels per day, with ongoing efforts to expand the customer base for optimal pricing[136]. - The company plans to enter the second phase of the West Ells project, aiming to increase production by an additional 5,000 barrels per day once financing is secured[149]. Cash and Liabilities - As of December 31, 2021, cash and cash equivalents were CAD 312,000, down from CAD 838,000 in 2020, while total liabilities decreased from CAD 596,240,000 in 2020 to CAD 579,357,000 in 2021[4][8]. - As of December 31, 2021, the company's working capital deficit was CAD 93 million, compared to CAD 509 million in 2020[73]. - The accumulated deficit as of December 31, 2021, was CAD 1.21 billion, slightly down from CAD 1.211 billion in 2020[73]. - The company is reliant on various forms of financing and operational cash flow to cover administrative expenses and future exploration and development costs[150]. Corporate Governance - The company is committed to high standards of corporate governance, ensuring transparency and shareholder protection[29]. - The board of directors includes an audit committee, corporate governance committee, compensation committee, and reserves committee to oversee specific aspects of the company's affairs[30]. - The board meets at least four times a year, with quarterly meetings to review and approve the company's performance[38]. - The company emphasizes the importance of independent and constructive contributions from all board members for strategic development[38]. - The board's practices are regularly reviewed and updated to maintain high-quality corporate governance[30]. - The governance committee is responsible for overseeing the board diversity policy and reviews the board composition at least annually[42]. - The company has a formal process for nominating directors, focusing on experience, professionalism, and diversity[40]. Strategic Initiatives - The company plans to focus on cost control and closely monitor crude oil market developments, with a restart plan for operations on schedule[13]. - The company aims to ensure effective operation of the first phase of the West Ells facility and achieve its design capacity while seeking funding for current operations and expansion plans[14]. - The company is considering strategic acquisitions to bolster its market position, with a budget of 100 million allocated for potential deals[26]. - Market expansion plans include entering two new international markets by Q2 2024, targeting a 10% market share in each[25]. - New product launches are expected to contribute an additional 200 million in revenue over the next fiscal year[23]. Shareholder Relations - The company maintains a high level of transparency through regular communication with shareholders via company visits, conference calls, and information bulletins[80]. - The company’s board of directors encourages shareholders to attend annual general meetings to communicate their views and concerns directly[82]. - The board has approved a dividend increase of 5% for shareholders, reflecting strong financial performance[29]. - The company has a dividend policy that considers operational performance, financial condition, cash needs, capital expenditures, and any restrictions on dividend payments[83]. Legal and Compliance - The company is subject to various legal claims and uncertainties that may significantly impact its net income or losses during the determination period[200]. - The company has made sufficient provisions for potential losses related to ongoing legal claims, although some justifications may not be fully supported during audits[200]. - There were no significant non-compliance issues with relevant laws and regulations reported as of December 31, 2021[134]. - The company has established strong relationships with local Indigenous communities and stakeholders, ensuring compliance with regulatory expectations[135]. Research and Development - The company is investing 50 million in R&D for new technologies aimed at enhancing product efficiency[24].

Financial Performance - The recurring net loss for Q2 2021 was CAD 14.9 million, with net sales remaining at CAD 0 compared to the same period in 2020[4]. - In Q2 2021, the company reported a net loss of CAD 22.79 million, compared to a net loss of CAD 2.69 million in Q1 2021[14]. - The company reported a net loss of CAD 22.8 million for the six months ended June 30, 2021, including non-controlling interests[54]. - The net loss for the three months ended June 30, 2021, was CAD 22,789,000, compared to a profit of CAD 14,518,000 for the same period in 2020[109]. - The company reported a net loss of approximately CAD 25.5 million for the six months ended June 30, 2021[114]. Production and Sales - The company's oil sands production was 0 barrels per day in Q2 2021, resulting in zero sales of diluted oil sands heavy oil due to temporary shutdowns[2]. - The average production of oil sands heavy oil was 0 barrels per day for both Q2 2021 and the first half of 2021, a decrease of 497 barrels per day compared to the same period in 2020[18]. - Oil sands heavy oil sales averaged 0 barrels per day in Q2 2021, down from 11 barrels per day in Q2 2020, reflecting a significant decline due to temporary shutdowns[19]. - The company's realized oil sands heavy oil revenue for the six months ended June 30, 2021, decreased to CAD 100,000 from CAD 2.6 million in the same period of 2020, representing a decline of approximately 96.15%[25]. Assets and Liabilities - Total liabilities increased to CAD 604.7 million as of June 30, 2021, compared to CAD 596.2 million at the end of 2020[6]. - The company's total assets decreased slightly to CAD 753.43 million in Q2 2021 from CAD 756.21 million in Q1 2021[14]. - The company's shareholder equity decreased to CAD 148.76 million in Q2 2021 from CAD 162.51 million in Q1 2021[14]. - The company's working capital deficit as of June 30, 2021, was CAD 535.5 million[54]. Cash Flow and Financing - As of June 30, 2021, the company had cash of CAD 262,000, down from CAD 838,000 as of December 31, 2020[6]. - The company has incurred a total of CAD 36.9 million in unsecured third-party debt, equivalent to CAD 46.4 million, considered as permitted debt[50]. - The company completed the issuance of $200 million in senior secured bonds at a price of $938.01 per bond, with an annual interest rate of 10%[41]. - The company has entered into a long-term deferral agreement with bondholders representing 96% of the outstanding bonds, which includes various payment terms and conditions[42]. Cost Management - The company continues to monitor international markets and the impact of COVID-19, focusing on cost control as a key strategy[5]. - The company's operating cash flow for the first half of 2021 was a net loss of CAD 3.3 million, an improvement from a net loss of CAD 6.4 million in the same period of 2020[17]. - The company's operating costs for Q2 2021 were CAD 1.59 million, down from CAD 1.83 million in Q1 2021[14]. - General and administrative costs for the three and six months ended June 30, 2021, were CAD 1.2 million and CAD 2.9 million, respectively, down from CAD 2 million and CAD 4.4 million in 2020, a reduction of 35% and 34%[33]. Regulatory and Compliance - The company is awaiting regulatory approval for the Legend project, expected in 2021, which will require additional financing for development[12]. - The internal controls over financial reporting were deemed effective as of June 30, 2021, with no significant changes identified that could materially affect the financial reporting[68]. - The company confirmed no further impairment signs for exploration and evaluation assets or the West Ells CGU as of June 30, 2021[39]. Market Conditions and Risks - The company continues to face risks associated with resource exploration and development, which may impact its financial condition and operations[64]. - The company is actively monitoring international crude oil market developments and will take appropriate actions based on actual conditions[112]. - The company temporarily suspended production due to significant fluctuations in the international oil market and the impact of the COVID-19 pandemic[112]. Shareholder and Corporate Governance - The company has confirmed compliance with the Hong Kong Stock Exchange's corporate governance code, maintaining high standards of corporate governance[74]. - The company received independent shareholder approval for the convertible bond on May 25, 2020, with all proceeds used for general working capital and debt repayment[84]. - The largest shareholder, Mr. Sun Guoping, held 150,232,591 shares, representing 61.70% of the total as of June 30, 2021[88].

Sunshine Oilsands Ltd 陽光油 砂 有 限 公 司 * 2020 | --- | --- | |-----------------------------------------------------|-------------------------------------------------------------| | | | | SUNSHINE OILSANDS | LTD. | | | 陽光油砂有限公司 * | | | | | | (a corporation incorporated under the Business Corporations | | Act of the Province of Alberta, Canada with limited | liability) | 2020 ANNUAL REPORT ANNUAL REPORT ANNUAL REPORT 2019 2019 ANNUALREPORT 2020 年 報 SUNSHINE OILSANDS LTD. 陽光油砂有限公司* (a corporation incorporated unde ...

Production and Sales Performance - Average oil sands heavy oil production for Q2 2020 was 0 barrels per day due to a temporary shutdown, resulting in no diluted oil sands heavy oil sales[2] - The net sales of diluted oil sands heavy oil for Q2 2020 dropped to CAD 0 from CAD 14.2 million in Q2 2019, primarily due to the temporary shutdown[4] - Oil sands heavy oil sales averaged 0 barrels per day in Q2 2020, a decrease of 2,044 barrels per day compared to Q2 2019[20] - The average production of diluted oil sands heavy oil for the six months ended June 30, 2020, was 543 barrels per day[12] - The company reported a net loss of CAD 14,591,000 for Q2 2020, compared to a net income of CAD 41,770,000 in Q4 2019[16] - The diluted oil sands heavy oil revenue for the three months ended June 30, 2020, was $14.434 million, a decrease of $1.075 million compared to the same period in 2019[26] - The realized oil sands heavy oil revenue for the six months ended June 30, 2020, was $15.213 million, down from $20.451 million in the same period of 2019, representing a decline of 25.5%[26] - The average realized price per barrel of oil sands heavy oil for the six months ended June 30, 2020, was $32.27, a decrease of $23.17 per barrel compared to $55.44 in 2019[27] - The average operating netback was CAD (81.30) per barrel for the first half of 2020, a significant decline from CAD (6.53) per barrel in the same period of 2019[19] Financial Performance - The recurring net operating loss for Q2 2020 decreased by 28% to CAD 4.3 million compared to CAD 6 million in Q2 2019[4] - The company reported a net loss of CAD 14,518,000 for the six months ended June 30, 2020, compared to a net loss of CAD 34,915,000 for the same period in 2019[111] - For the six months ended June 30, 2020, the company recorded a net loss attributable to shareholders of CAD 27.1 million[56] - The company’s total liabilities amounted to CAD 618.0 million, up from CAD 601.8 million as of December 31, 2019[5] - Shareholder equity decreased to CAD 153.5 million as of June 30, 2020, from CAD 175.8 million as of December 31, 2019[5] - The company’s total assets decreased to CAD 771,561,000 from CAD 777,528,000 in Q4 2019[16] - The company’s cash position decreased to CAD 470,000 from CAD 1,254,000 in the previous year[107] - The company’s debt-to-asset ratio as of June 30, 2020, was 80%, compared to 77% as of December 31, 2019[56] - The company’s total financing costs for the six months ended June 30, 2020, were CAD 29.5 million, a decrease from CAD 32.2 million in the same period of 2019[35] Operational Challenges - The company experienced a temporary shutdown starting March 31, 2020, impacting production and sales volumes significantly[19] - The company plans to focus on improving production performance despite the challenges faced in the current market[20] - The company plans to restart operations in the Muskwa and Godin areas, which are expected to bring significant benefits under the new ownership of the joint venture[6] - The company anticipates that the temporary suspension of production for 90 days due to the COVID-19 pandemic will not have a significant adverse impact on operations[120] - The ability to continue as a going concern is contingent upon successfully refinancing or restructuring existing debt and obtaining additional financing[123] Capital Expenditures and Investments - The company has invested approximately CAD 1.29 billion in oil sands leases, drilling operations, project engineering, and other assets as of June 30, 2020[11] - Capital expenditures for Q2 2020 were CAD 431,000, an increase from CAD 299,000 in Q4 2019[16] - The total capital expenditures for the six months ended June 30, 2020, amounted to $500 million, with a non-cash expense of $(6) million, resulting in a total balance of $270,508 million[133] Debt and Financing - The company raised CAD 72 million through a convertible bond agreement with a conversion price of CAD 0.632 per share, with an annual interest rate of 8%[3] - The company incurred interest expenses of CAD 7.99 million for the three months ended June 30, 2020, compared to CAD 8.46 million for the same period in 2019[35] - The company has a convertible bond subscription agreement with a total principal amount of HKD 72 million, with an annual interest rate of 8%[59] - The company has incurred a total of $28.5 million in unsecured third-party debt as of June 30, 2020, exceeding the allowed debt limit of $15 million[52] - The company must complete a financing of $5 million by April 30, 2019, to maintain sufficient liquidity[51] Shareholder and Equity Information - The company’s total equity decreased from CAD 175.755 million as of December 31, 2019, to CAD 153.514 million as of June 30, 2020[186] - As of June 30, 2020, the company had 129,554,630 shares of Class A common stock issued and outstanding[92] - The company did not declare or pay any dividends for the six-month period ending June 30, 2020[101] - Major shareholders include Zhang Jun, holding approximately 10.71% of the issued shares with 13,881,590 ordinary shares[100] Governance and Compliance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange regulations, with some deviations noted[76] - The company confirms compliance with the standards of the Model Code for Securities Transactions by Directors, as required by the Hong Kong Listing Rules[77] - The company has established internal controls over financial reporting to provide reasonable assurance regarding the reliability of financial reports[68] Market and Economic Conditions - The company is closely monitoring international oil market developments and will take appropriate actions based on actual conditions[120] - The company will continue to focus on cost control and adjust strategies in response to developments in the crude oil market and the COVID-19 pandemic[105] - Management has made significant judgments in preparing forecasts to support the going concern assumption, particularly regarding oil sales and prices[123]

Production and Sales Performance - For the year ended December 31, 2019, the average bitumen production was 1,702 barrels per day, with a fourth-quarter average of 1,589 barrels per day[10]. - Bitumen sales increased from CAD 4.8 million in Q4 2018 to CAD 9.2 million in Q4 2019, representing a growth of 91.7% due to increased production and sales volume[12]. - The average diluent sales for the year were 2,080 barrels per day, with a fourth-quarter average of 2,015 barrels per day[10]. - The average production of oil sands heavy oil was 1,589 barrels per day for the three months and 1,702 barrels per day for the twelve months ended December 31, 2019[178]. - The average sales volume of diluted oil sands heavy oil was 2,015 barrels per day for the three months and 2,080 barrels per day for the twelve months ended December 31, 2019[178]. - The company noted that the increase in oil sands heavy oil production and sales prices contributed significantly to revenue growth[188]. Financial Performance - The company reported a net loss of CAD 80.6 million for 2019, compared to a net loss of CAD 127.0 million in 2018, showing a 36% improvement[7]. - As of December 31, 2019, total liabilities amounted to CAD 601.8 million, up from CAD 527.3 million in 2018, indicating a 14% increase[15]. - The company reported a net loss of CAD 26.66 million for the fourth quarter of 2019, compared to a net loss of CAD 19.14 million in the third quarter[181]. - The company’s total assets were CAD 777.53 million as of December 31, 2019, with shareholders' equity at CAD 175.76 million[181]. - The total oil sales (net of royalties) for the twelve months ended December 31, 2019, increased to CAD 41,716,000 from CAD 37,007,000 in 2018, reflecting a growth of 12.0%[189]. Cost Management and Operational Efficiency - The company reported a decrease in operating costs per barrel by 54.29% for the three months ended December 31, 2019, compared to the same period in 2018[184]. - The company's total operating costs for the three months ended December 31, 2019, were 19.86 CAD per barrel, significantly lower than 43.45 CAD per barrel in the same period of 2018, indicating a 54.3% decrease[198]. - General and administrative expenses for the three months ended December 31, 2019, were 1,298,000 CAD, down 200,000 CAD from 1,498,000 CAD in the same period of 2018[200]. - The company is focused on cost management and operational efficiency, leading to a significant reduction in general and administrative costs over the year[200]. Strategic Plans and Future Outlook - The company plans to focus on cost control and improve production at West Ells, with intentions to increase output when heavy oil pricing conditions improve[21]. - The company plans to enter the second phase of the West Ells project, which will increase production by an additional 5,000 barrels per day once financing is secured[176]. - The company plans to establish 50 high-end multifunctional gas stations in Chengde City over the next three years, providing services including gasoline refueling, electric vehicle charging, and convenience stores[159]. - The company is investing in R&D for new technologies, allocating $F million towards the development of innovative solutions in the upcoming fiscal year[31]. Corporate Governance - The company has established a corporate governance committee to fulfill the functions of a nomination committee, ensuring compliance with the corporate governance code[38]. - The board consists of a diverse group of members, including executive and independent non-executive directors, ensuring a balanced decision-making process[46]. - The company has adhered to high standards of corporate governance since its listing date, with regular reviews and updates to governance practices[39]. - The board confirmed that the company has complied with corporate disclosure and trading policies throughout the reporting period[74]. Shareholder Information - As of December 31, 2019, the available reserves for distribution to shareholders were approximately CAD 252 million[103]. - The company did not declare or pay any dividends for the fiscal year ending December 31, 2019[104]. - The company has adopted a dividend policy that considers operational performance, financial condition, cash requirements, and any restrictions on dividend payments[86]. Resource Estimates - The company has identified a best estimate of contingent resources totaling 86 million barrels, with an additional 8.95 million barrels classified as temporarily deferred[20]. - The company has an estimated recoverable resource of approximately 1.63 billion barrels as of December 31, 2019, with a best estimate of 950 million barrels in the Athabasca region[176].

Financial Performance - Average production of diluted bitumen was 2,044 barrels per day in Q2 2019, with sales averaging 2,506 barrels per day[2][15] - Revenue from diluted bitumen sales increased by 56% to CAD 14.2 million in Q2 2019, compared to CAD 9.1 million in Q2 2018[6] - Net loss decreased by 69% from CAD 31.1 million in Q2 2018 to CAD 9.8 million in Q2 2019[6] - Total oil sales reached CAD 14,434,000 in Q2 2019, a 56.5% increase from CAD 9,252,000 in Q2 2018[25] - The company reported a net loss of CAD 9,799,000 in Q2 2019, significantly reduced from CAD 25,116,000 in Q1 2019[19] - The net loss for the six months ended June 30, 2019, was CAD 34,915,000, compared to a loss of CAD 63,978,000 for the same period in 2018[120] - Basic and diluted loss per share for the six months was CAD (0.01), consistent with the previous year[119] - The company reported total revenue of CAD 20,141,000 for the six months ended June 30, 2019, compared to CAD 20,250,000 in the same period of 2018[120] Production and Sales - Oil sands heavy oil sales increased to 2,049 barrels per day in Q2 2019, up 33.1% from 1,540 barrels per day in Q2 2018[24] - The average production of oil sands heavy oil was 2,044 barrels per day for the three months ended June 30, 2019, an increase of 434 barrels per day compared to the same period in 2018[23] - The average selling price of diluted oil sands heavy oil increased by 24.07%, contributing to a positive operating netback of CAD 3.55 per barrel in Q2 2019, compared to a loss of CAD 14.86 per barrel in Q2 2018[20] - The realized oil sands heavy oil revenue increased by CAD 4.2 million to CAD 10.7 million for the three months ended June 30, 2019, compared to CAD 6.5 million in the same period of 2018, with revenue per barrel rising from CAD 46.70 to CAD 57.94[29] Capital Expenditures and Investments - The company has invested approximately CAD 2.38 billion in oil sands leases, drilling operations, and project development as of June 30, 2019[14] - Capital expenditures for Q2 2019 were CAD 493,000, up from CAD 342,000 in Q1 2019[19] - The company aims to enter the second phase of the West Ells project, increasing production by an additional 5,000 barrels per day once financing is secured[13] Debt and Liabilities - As of June 30, 2019, total liabilities were CAD 563.7 million, while shareholders' equity was CAD 217.7 million[8] - The company has incurred CAD 7.48 million in municipal property tax liabilities, along with CAD 2.85 million in overdue penalties[51] - As of June 30, 2019, the company had incurred a total of $16.5 million in unsecured third-party debt, exceeding the allowed debt limit of $15 million[49] - The company's debt-to-asset ratio increased to 72% as of June 30, 2019, compared to 68% as of December 31, 2018[53] Cash Flow and Liquidity - The cash flow from operating activities showed a net cash outflow of CAD 819,000 for the six months ended June 30, 2019, compared to a net cash outflow of CAD 6,006,000 for the same period in 2018, reflecting better operational efficiency[125] - The company reported a total cash increase of CAD 306,000 for the three months ended June 30, 2019, compared to an increase of CAD 208,000 in the same period of 2018[125] - The financing activities generated a net cash inflow of CAD 2,283,000 for the six months ended June 30, 2019, compared to CAD 6,967,000 for the same period in 2018, indicating a decrease in financing activities[125] Shareholder Equity - Shareholder equity decreased to CAD 217,723,000 in Q2 2019 from CAD 227,171,000 in Q1 2019[19] - Shareholders' equity decreased to CAD 217.723 million from CAD 251.953 million, reflecting a decline of approximately 13.6%[123] Corporate Governance and Compliance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange, with a noted deviation regarding formal appointment letters for directors[77] - The company established a Corporate Governance Committee to fulfill the functions of the Nomination Committee as per the code, ensuring compliance after appointing new members[78] Future Outlook - The company’s outlook is positive due to stabilizing international oil prices and the maturation of SAGD technology, which is expected to enhance production performance[115] - The company anticipates an increase in production in a favorable environment for diluted oil sands heavy oil netback values[115] - The company believes that the restart of the Muskwa and Godin projects could bring significant benefits following ownership changes[115] Tax and Deductions - The company has approximately CAD 1.57 billion in available tax deductions as of June 30, 2019, with unrecognized tax losses expiring between 2029 and 2038[42] - The company has a deferred tax asset net amount related to non-capital losses of $308.736 million as of June 30, 2019[173] Foreign Exchange and Currency Risk - A 1% increase or decrease in the USD/CAD exchange rate would impact the company's debt by approximately CAD 2.6 million as of June 30, 2019[198] - The company recorded an unrealized foreign exchange loss of CAD 6.004 million for the three months ended June 30, 2019, compared to a gain of CAD 5.527 million for the same period in 2018[200]