Financial Performance - Total production revenue for 2023 was CAD 13.561 million, a decrease of 49% from CAD 26.802 million in 2022[17]. - The company reported a net loss of CAD 21.146 million for 2023, compared to a loss of CAD 3.579 million in 2022[10]. - Operating netback for 2023 was CAD (1.496) million, a significant decline from CAD 9.461 million in 2022[10]. - The company reported a total revenue of CAD 3,160 thousand for the three months and CAD 13,541 thousand for the year, reflecting a decrease of 52% and 50% respectively compared to 2022[74]. - The annual loss for the year ended December 31, 2023, was CAD 21.1 million, highlighting financial challenges faced by the company[166]. Production and Sales - Average daily sales volume decreased by 55% to 1,676 barrels of oil equivalent per day in 2023 from 3,725 barrels in 2022[7]. - Total production in 2023 was 1,646 barrels of oil equivalent per day, a decrease of 9.1% compared to 1,810 in 2022[55]. - The company experienced a 30% production decline during Q2 2023 due to forest fires, impacting overall annual sales[65]. - Production revenue for 2023 was CAD 13,561,000, a significant drop of 49.5% from CAD 26,802,000 in 2022[55]. - The total sales volume for the year ended December 31, 2023, decreased by 10% compared to the previous year, primarily due to natural declines and production interruptions[69]. Assets and Liabilities - Total assets decreased to CAD 35.508 million in 2023 from CAD 52.399 million in 2022[8]. - Total liabilities amounted to CAD (41.008) million in 2023, down from CAD (43.721) million in 2022[8]. - The company’s net working capital as of December 31, 2023, was CAD (13,120,000), a decrease from CAD (36,968,000) in 2022[55]. - The company's total capital as of December 31, 2023, was CAD 31,887,000, down from CAD 47,164,000 in 2022[106]. - As of December 31, 2023, the company's current liabilities exceeded its current assets by CAD 13.1 million, indicating significant uncertainty regarding its ability to continue as a going concern[166]. Capital Expenditures and Financing - Capital expenditures for 2023 were CAD 538,000, significantly lower than CAD 6.175 million in 2022[10]. - The company raised CAD 1.9 million through private placements in 2023 to reduce outstanding debt related to the 2022 drilling program[53]. - The company plans to issue 33 million shares at a price of HKD 0.22 per share, raising a total of HKD 72.6 million (CAD 1.2 million) in 2024[18]. - The company secured new long-term debt through a $8 million shareholder loan and a $3.5 million loan from CIMC Leasing USA, with both loans having a term of 48 months and an annual interest rate of 9.25%[116]. - The company is actively seeking additional financing opportunities to manage its capital expenditures and leverage, including alternative debt arrangements and joint ventures[156]. Operational Challenges - The company faced significant uncertainty due to global factors such as the Ukraine conflict, climate change, and supply chain disruptions, which have notably impacted natural gas prices and operational performance[117]. - The company aims to maintain its production reserve strategy to balance any short-term revenue losses due to commodity price fluctuations, maximizing future returns[18]. - The company faces potential increased costs and operational challenges due to evolving environmental regulations in the oil and gas industry[159]. - The company has significant uncertainty regarding its ability to continue as a going concern, dependent on generating positive cash flow from operations and securing financing[117]. Management and Governance - The management team includes experienced professionals with extensive backgrounds in finance, engineering, and operations, enhancing the company's strategic capabilities[37][39][43]. - The company has appointed independent directors and has a structured board with various committees to oversee financial and operational risks[33]. - The roles of the chairman and CEO are separated, with Mr. Liu serving as chairman and Mr. Wang as CEO, although Mr. Liu will temporarily assume both roles starting February 14, 2024[197]. - The board consists of two executive directors and three independent non-executive directors, ensuring a reasonable structure and power balance[199]. - The company has not yet established measurable diversity targets for the board as of December 31, 2023, but will consider stakeholder expectations and best practices[188]. Forward-Looking Statements and Risks - The company emphasizes that certain statements in the MD&A are forward-looking and involve significant risks and uncertainties, which could lead to actual results differing materially from those projected[46]. - Investors are cautioned not to overly rely on any forward-looking statements, as actual results may vary significantly due to various factors beyond the company's control[47]. - Significant changes in risk factors and the company's ability to respond to business and external environment changes have been monitored by management[158]. - The company has a strong focus on resource and reserve statements, which are also considered forward-looking due to their reliance on estimates and assumptions regarding future production and profitability[47]. Employee and Compensation - The total employee compensation for the year ended December 31, 2023, was CAD 1 million, down from CAD 1.5 million in 2022[149]. - The company had a total of 5 employees as of December 31, 2023, down from 6 employees in 2022[149]. - The company’s G&A costs included capitalized employee costs of CAD 60,000 for the three months and CAD 286,000 for the year, reflecting a decrease of 32% and 19% respectively[88]. Miscellaneous - The company has not declared dividends for the years ending December 31, 2023, and 2022[133]. - The company has not engaged in any off-balance sheet transactions during the periods ending December 31, 2023, and 2022[137]. - The company has pledged all assets to support its debt arrangements, with no other collateral in place[138]. - The company’s financial statements have been audited and found to fairly present its financial position as of December 31, 2023[165].

智通财经APP讯，吉星新能源(03395)发布截至2023年12月31日止年度业绩，净收入总额 1245.6万加元，同比下降44.3%;净亏损2114.6万加元，同比扩大490.8%;每股基本亏损0.05加元。 截至2023年12月31日的年度总销量比比较期低10%，原因是2023年第二季度的森林大火中断了生产，以及自然减产。公司估计，截至2023年6月30日的三个月内，由于森林火灾，产量下降了约30%。截至2023年12月31日的三个月的总销量比2022年同期下降了8%，主要原因是自然下降。 ...

Financial Performance - JX Energy Ltd. reported a total revenue of CAD 12,456,451 for the year ended December 31, 2023, a decrease of 44.3% compared to CAD 22,362,849 in 2022[6]. - JX Energy Ltd. incurred a net loss of CAD 21,146,164 for the year, compared to a loss of CAD 3,579,321 in the previous year, representing an increase in loss of 493.5%[6]. - The company reported a net loss of C$20,146,164 for the year ended December 31, 2023, compared to a net loss of C$3,579,321 in 2022, indicating a significant increase in losses[9]. - The company reported a significant impairment loss of CAD 10,387,644 for the year ended December 31, 2023, compared to CAD 763,280 in 2022[144]. - The basic and diluted loss per share was CAD (0.05), compared to CAD (0.01) in 2022, reflecting a significant increase in losses[183]. - The company reported a pre-tax loss of CAD 20,935,772 for the year ended December 31, 2023, compared to a loss of CAD 3,579,231 in 2022[180]. Assets and Liabilities - The company's total assets decreased to CAD 35,507,629 as of December 31, 2023, down 32.2% from CAD 52,398,863 in 2022[4]. - Total liabilities decreased to CAD 41,007,614, down 6.2% from CAD 43,721,313 in 2022[4]. - The company’s total cash and cash equivalents increased to C$363,305 at the end of 2023, up from C$333,227 at the end of 2022[9]. - The company had a total of C$1,520,000 in financial liabilities due within one year, with only C$400,000 in cash and cash equivalents available as of December 31, 2023[19]. - Accounts receivable decreased significantly to CAD 825,963 from CAD 2,629,405, indicating a reduction of about 68.6%[87]. - Total financial liabilities decreased to CAD 38,635,004 from CAD 41,406,468, representing a decline of approximately 6.6%[87]. - Long-term debt reduced to CAD 15,082,539 from CAD 18,137,430, showing a decrease of about 16.4%[87]. - Lease liabilities decreased to CAD 991,914 from CAD 1,730,474, indicating a reduction of approximately 42.7%[87]. Cash Flow and Financing - Cash flow from operations was negative at C$4,937,706, contrasting with a positive cash flow of C$4,587,926 in the previous year[9]. - The company raised C$10,976,720 from a financing arrangement with Jixing Energy, significantly contributing to its cash flow[9]. - The company completed a capital raise of CAD 1.3 million on February 8, 2024, and announced another round of CAD 1.3 million equity financing on March 15, 2024[23]. - The company secured a new long-term debt of CAD 4,700,000 from a leasing company, with a term of 48 months and an interest rate of 9.25%[113]. - The company secured an $8 million (C$10.8 million) loan from Jixing with a term of 48 months and an annual interest rate of 9.25%[117]. - The company recognized a gain of $5.1 million due to the termination of a debt agreement with CIMC, which was recorded in retained earnings[118]. Operational Highlights - The company plans to resume trading on the Hong Kong Stock Exchange on April 19, 2024, after a suspension[3]. - The company’s board expressed concerns about its ability to continue as a going concern due to significant uncertainties affecting its operations, including geopolitical events and market volatility[19]. - The company expects to generate operating cash inflows[23]. - The company’s oil and gas reserves are evaluated annually by independent reserve engineers, ensuring accurate reporting of recoverable quantities and future cash flows[78]. Impairment and Asset Management - The company identified impairment indicators for exploration and evaluation assets, resulting in a calculated impairment amount of CAD 4,000,000[145]. - The company reported a net impairment loss of CAD 4 million on undeveloped assets as of December 31, 2023, due to unfavorable market conditions[97]. - The company assesses impairment for development and production assets when the carrying amount may exceed the recoverable amount, with impairment losses recognized in profit or loss[49]. Shareholder and Management Compensation - The company did not declare any dividends for the years ended December 31, 2023, and 2022[184]. - The total compensation for key management personnel for the year ended December 31, 2023, was CAD 830,000, down from CAD 1,020,000 in 2022[185]. - The total remuneration for the highest-paid individuals, excluding the CEO, was CAD 531,547 in 2023, down from CAD 691,402 in 2022, reflecting a decrease of about 23.1%[175]. - The company’s independent non-executive directors received a total compensation expense of CAD 400,621 for the year ended December 31, 2023, after accounting for adjustments related to the shadow unit plan[168]. Risk Management - The company faces credit risk primarily from counterparties potentially defaulting on contracts, managed by trading only with high-credit-rated financial institutions[198]. - The company has a risk management policy in place to identify, analyze, and monitor various risks, including credit, liquidity, and market risks[197].

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告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 JX Energy Ltd. （ 吉 星 新 能 源 有 限 責 任 公 司 ）* （根據阿爾伯塔法例註冊成立的有限責任公司） （股份代號：3395） 截至 年 月 日止三個月及九個月未經審計的業績公告 2023 9 30 本公告乃根據香港聯合交易所有限公司證券上市規則第13.09(2)條及《證券及期貨條例》（香 港法例第571章）第XIVA部刊發。 JX Energy Ltd.董事會欣然宣佈其截至2023年9月30日止三個月及九個月的未經審計簡明中 期財務業績。 JX Energy Ltd（.「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司截至2023年9月30日 止三個月及九個月的未經審計簡明中期財務業績（「中期業績」）及其業務更新。本公告由本公 司根據香港聯合交易所有限公司證券上市規則（「上市規則」）第13.09(2)條及香港法例第571 章《證券及期貨條例》第XIVA部刊發。董事會及其 ...

Financial Performance - Production revenue for the three months ended June 30, 2023, was CAD 2,391,000, a decrease of 73% compared to CAD 8,893,000 in the same period of 2022[8]. - Average daily sales for the six months ended June 30, 2023, were 1,550 barrels of oil equivalent per day, down 22% from 1,988 barrels per day in the same period of 2022[8]. - The company reported a net operating loss of CAD 447,000 for the three months ended June 30, 2023, compared to a net operating income of CAD 4,347,000 in the same period of 2022, representing a 110% change[8]. - Basic and diluted loss per share for the six months ended June 30, 2023, was CAD 0.01, compared to earnings of CAD 0.02 in the same period of 2022, reflecting a 144% change[8]. - The company reported a net loss of CAD 1,966 thousand in Q2 2023, compared to a profit of CAD 5,358 thousand in Q2 2022[20]. - Revenue for the three months ended June 30, 2023, was CAD 2.9 million, a decrease of 62.0% compared to CAD 7.7 million for the same period in 2022[152]. - Operating loss for the six months ended June 30, 2023, was CAD 3.5 million, compared to an operating income of CAD 10.1 million for the same period in 2022[152]. - The company reported a net loss of CAD 4.1 million for the six months ended June 30, 2023, compared to a net income of CAD 8.4 million for the same period in 2022[152]. Assets and Liabilities - Total assets as of June 30, 2023, were CAD 48,474,000, a decrease from CAD 52,399,000 as of December 31, 2022[9]. - Total liabilities as of June 30, 2023, were CAD 43,803,000, slightly increased from CAD 43,721,000 as of December 31, 2022[9]. - The company’s total equity as of June 30, 2023, was CAD 4,671,000, down from CAD 8,678,000 as of December 31, 2022[9]. - The company’s cash and cash equivalents decreased significantly from CAD 333.2 million at the end of 2022 to CAD 109.2 million by June 30, 2023, a reduction of approximately 67.2%[150]. - The company’s total liabilities included long-term payables of CAD 14,503 thousand and other liabilities of 577 thousand CAD as of June 30, 2023[56]. - As of June 30, 2023, the company's long-term debt stood at 8,121 thousand CAD, with total capital amounting to 44,950 thousand CAD and a capital-to-debt ratio of 90%[56]. Production and Sales - The average daily natural gas production in Q2 2023 was 6,644 thousand cubic feet, a decrease of 33.6% compared to Q2 2022's 10,371 thousand cubic feet[20]. - Total production in Q2 2023 was 1,210 barrels of oil equivalent per day, down 34.5% from 1,855 barrels in Q2 2022[20]. - The average daily crude oil production in Q2 2023 was 63 barrels, slightly up from 56 barrels in Q2 2022[20]. - Total sales volume decreased by 36% and 23% for the three and six months ended June 30, 2023, respectively, primarily due to production interruptions from wildfires[27]. - Natural gas production dropped by 36% year-over-year for the three months ended June 30, 2023, with an estimated 30% reduction attributed to wildfires[27]. Costs and Expenses - Operating costs for natural gas, natural gas liquids, and condensate increased by 4% to 3,257 thousand CAD for the three months ended June 30, 2023, primarily due to increased gas collection and processing fees[43]. - General and administrative expenses decreased by 57% to 301 thousand CAD for the three months ended June 30, 2023, mainly due to reduced shadow unit plan costs and lower consulting fees[44]. - The average cost per barrel of oil equivalent increased by 57% to 30.50 CAD for the three months ended June 30, 2023, compared to 19.47 CAD in the same period of 2022[43]. - The company reported a total of CAD 22,356,551 in payables as of June 30, 2023, compared to CAD 20,882,800 at the end of 2022, indicating an increase of approximately 7%[180]. Financing and Capital Management - The company is actively seeking alternative financing opportunities, including joint ventures and asset sales, to manage capital expenditures and leverage[102]. - The company has implemented cost-cutting measures and capital management initiatives to improve cash flow and financial stability[102]. - The company issued 10 million shares at a price of HKD 1.11 per share in November 2022, raising funds for operations[17]. - The company completed a private placement with Jilin, raising a total of HKD 12.8 million (CAD 2.05 million) by issuing 16 million shares at HKD 0.80 per share[62]. - The company raised a total of CAD 4.31 million from the Dalian second phase subscription, with 35% allocated for drilling new wells, 45% for subordinated debt principal repayment, and 20% for general working capital[70]. Risk Management and Compliance - The company has emphasized the importance of monitoring risks and uncertainties that may affect future performance, indicating a cautious outlook[12]. - The management discussion and analysis was published on August 14, 2023, highlighting the need for investors to consider forward-looking statements with caution[11]. - The company has established risk management policies to identify and analyze financial risks, including accounts receivable and payable, cash and cash equivalents, and shareholder loans[91]. - The company actively engages with stakeholders, including local communities and regulatory bodies, to manage potential concerns related to its operations[94]. - The oil and gas industry is facing increased regulatory scrutiny, which may lead to higher operational costs and impact business continuity[105]. Shareholder Information - As of June 30, 2023, the company has issued and outstanding 449,886,520 common shares, with options issued at HKD 0.52 and HKD 0.48 for a total of 4.58 million options[3]. - Major shareholder Aspen Investment Holdings Limited holds 181,194,306 shares, representing approximately 40.28% of the issued share capital[126]. - The company did not declare dividends for the three or six months ended June 30, 2023, and June 30, 2022[82]. - The company has complied with the corporate governance code during the reporting period ending June 30, 2023[116]. Corporate Governance - The Audit and Risk Committee, consisting of three independent non-executive directors, reviewed the interim performance for the three and six months ended June 30, 2023[119]. - The company has established a written terms of reference for its Audit and Risk Committee to ensure proper governance[119]. - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[116].

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告之內容概不負責，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告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失 承擔任何責任。 JX Energy Ltd. （ 吉 星 新 能 源 有 限 責 任 公 司 ）* （前稱Persta Resources Inc.） （根據阿爾伯塔法例註冊成立的有限責任公司） （股份代號：3395） 截至二零二三年六月三十日止三個月及六個月的 未經審核業績公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.49(6)條刊發。 吉星新能源有限責任公司*董事會欣然宣佈其於截至二零二三年六月三十日止三個月及六 個月之未經審核簡明中期財務業績。 吉星新能源有限責任公司*（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司於截至 二零二三年六月三十日止三個月及六個月的未經審核簡明中期財務業績（「中期業績」）。本 公告由本公司根據香港聯合交易所有限公司證券上市規則（「上市規則」）第13.49(6)條刊發。 董事會及其審核及風險委員會已審閱中期業績。有關進一步資料，請參閱隨附公告。 承董事會命 ...

Financial Performance - Total production revenue for 2022 reached CAD 26.8 million, a 25% increase from CAD 21.5 million in 2021[12] - The company reported a net loss of CAD 3.6 million for 2022, an improvement from a loss of CAD 4.8 million in 2021[7] - The company reported a significant increase in trade income, with a net gain of C$152 thousand for the year, compared to a loss of C$11 thousand in 2021, marking a 1482% change[149] - The company generated approximately 90% of its revenue from the Basing area, with natural gas prices in Western Canada reaching a 10-year high in 2022[47] - The total revenue for the year ended December 31, 2022, increased by 26% to CAD 27,032 million from CAD 21,518 million in 2021, driven by higher commodity prices despite lower production[68] Production and Reserves - Average daily production for 2022 was 1,810 barrels of oil equivalent per day, down 19% from 2,243 barrels in 2021[7] - Proven reserves as of December 31, 2022, were 4.9 million barrels of oil equivalent, a decrease from 5.1 million barrels in 2021[10] - Average daily natural gas production decreased from 12,416 thousand cubic feet per day in 2021 to 10,042 thousand cubic feet per day in 2022, reflecting a decline in total production over the past five years[50] - The company’s total production for the year was 1,810 barrels of oil equivalent per day, down 19% from 2,243 barrels in 2021[64] Capital Expenditures and Investments - Capital expenditures for 2022 amounted to CAD 6.2 million, down from CAD 8.6 million in 2021[7] - Capital expenditures for property, plant, and equipment totaled CAD 168,000 for the three months ended December 31, 2022, a decrease of 98% from CAD 8,319,000 in 2021[93] - The company plans to evaluate additional drilling targets for 2023 and 2024, depending on available capital[47] - New product development initiatives are underway, with an investment of CAD 2,000 thousand allocated for research and development in renewable energy technologies[40] Debt and Financing - The company repaid CAD 5 million of debt using part of the equity proceeds, maintaining a lower interest rate of 10%[13] - On March 27, 2023, the company secured new term debt of USD 11.5 million at an annual interest rate of 9.25%, while repaying existing debt of CAD 15 million[14] - The company raised a total of CAD 7.23 million through two private placements in 2022, using CAD 5 million to reduce debt from CAD 20 million to CAD 15 million[48] - The company has a total of CAD 14.75 million in loans due by May 2023, with a restructuring agreement in place that waived certain financial covenants[105] Operational Efficiency - Operating netback for 2022 was CAD 9.5 million, a significant increase of 114% compared to CAD 4.4 million in 2021[4] - Operating costs decreased to CAD 12.8 million in 2022 from CAD 14.4 million in 2021, despite increased costs from gas transportation obligations[50] - The management team highlighted the successful implementation of cost-control measures, resulting in a 10% reduction in operational expenses[40] - The average cost per barrel of oil equivalent for natural gas, natural gas liquids, and condensate increased by 9% year-over-year to CAD 19.09 for the year ended December 31, 2022[78] Market and Product Development - The company provided guidance for the upcoming fiscal year, projecting a revenue increase of 20% to CAD 12,000 thousand, driven by new product launches and market expansion efforts[40] - The company is exploring market expansion opportunities in North America and Europe, aiming to increase its market share by 10% in these regions over the next two years[40] - A strategic acquisition of a smaller competitor is being considered, which could enhance the company's operational capabilities and market presence[40] Risk Management and Governance - The management emphasized the importance of risk management strategies to mitigate potential impacts from market volatility and regulatory changes[41] - The company has implemented risk management policies to monitor compliance and assess market conditions[133] - The board has established a framework to identify, assess, and manage key risks, with a focus on improving liquidity through increased commodity prices and confirmed reserves[144] - The company is actively seeking additional financing opportunities, including alternative debt arrangements and joint ventures, to manage capital expenditures[144] Shareholder and Corporate Governance - The company’s ability to continue as a going concern is dependent on generating positive cash flow from operations and obtaining financing[107] - The company did not declare dividends for the years ended December 31, 2022, and 2021[122] - The board consists of five directors, including two executive directors and three independent non-executive directors, complying with listing rules[166] - The company emphasizes board diversity, considering factors such as age, culture, education background, and professional experience in director selection[168] Employee and Community Engagement - Total employee compensation for the year ended December 31, 2022, was CAD 1.2 million, unchanged from 2021[137] - The company is committed to operating transparently and responsibly in communities, amidst increasing regulatory scrutiny in the oil and gas sector[147] - The gender ratio of the workforce, including senior management, is balanced at 1:1 as of December 31, 2022[174]

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告之內容概不負責，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告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失 承擔任何責任。 JX Energy Ltd. （ 吉 星 新 能 源 有 限 責 任 公 司 ）* （根據阿爾伯塔法例註冊成立的有限責任公司） （股份代號：3395） 截至2022年12月31日止年度之 年度業績公告 吉星新能源有限責任公司（*「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司截至2022 年12月31日止年度的財務業績（「年度業績」）。本公告由本公司根據香港聯合交易所有限公 司證券上市規則（「上市規則」）第13.49(1)條及第13.49(2)條而刊發。董事會及本公司審計及 風險委員會已審閱年度業績，而年度業績已經核數師同意。有關進一步資料，請參閱隨附 公告。 承董事會命 吉星新能源有限責任公司* 柳永坦 主席 卡加利，2023年3月30日 香港，2023年3月30日 於本公告日期，董事會包括兩名執行董事柳永坦先生及王平在先生；及三名獨立非執行董事 Richard Dale Orman先生、Pe ...

Revenue and Sales Performance - For the three months ended September 30, 2022, the company reported revenue from product sales of CAD 4,987,671, a decrease of 1.26% compared to CAD 5,051,302 for the same period in 2021[13]. - For the nine months ended September 30, 2022, total revenue was CAD 16,999,301, representing a 26.5% increase from CAD 13,478,181 in the same period of 2021[13]. - For the nine months ended September 30, 2022, total sales of produced goods amounted to CAD 20,244,954, a significant increase from CAD 14,914,698 in the same period of 2021, representing a growth of approximately 35.5%[64]. - The company reported a total revenue of CAD 4,987,670 for the three months ended September 30, 2022, compared to CAD 5,051,302 for the same period in 2021, indicating a slight decrease of about 1.3%[64]. - The largest customer accounted for 80% of the company's revenue for the nine months ended September 30, 2022, up from 79% in 2021, while the second largest customer contributed 8%[66]. - The company’s trading revenue from natural gas for the nine months ended September 30, 2022, was CAD 319,305, compared to CAD 144,243 in the same period of 2021, marking an increase of approximately 121%[64]. Financial Performance - The net income for the three months ended September 30, 2022, was CAD 4,066,730, down from CAD 4,522,915 in the same period of 2021, indicating a decline of 10.1%[13]. - The basic and diluted earnings per share for the nine months ended September 30, 2022, was CAD 0.02, compared to a loss of CAD 0.01 in the same period of 2021[13]. - For the three months ended September 30, 2022, the company reported a net loss of CAD 1.60 million, with a basic and diluted loss per share of CAD (0.00) compared to a profit of CAD 1.51 million and earnings per share of CAD 0.00 for the same period in 2021[73]. - For the nine months ended September 30, 2022, the company reported a net income of CAD 6.75 million, with earnings per share of CAD 0.02, compared to a net loss of CAD (3.26) million and a loss per share of CAD (0.01) for the same period in 2021[73]. - Financial expenses totaled CAD 2,405,428 for the nine months ended September 30, 2022, down from CAD 3,754,464 in the same period of 2021, reflecting a decrease of approximately 36%[70]. Assets and Liabilities - The company's total liabilities as of September 30, 2022, amounted to CAD 41,797,302, a decrease of 12.5% from CAD 47,968,368 at the end of 2021[10]. - The total assets of the company increased to CAD 60,790,710 as of September 30, 2022, compared to CAD 52,982,177 at the end of 2021, reflecting a growth of 14.5%[11]. - The company’s total equity increased to CAD 18,993,408 as of September 30, 2022, from CAD 5,013,809 at the end of 2021, marking a substantial increase[10]. - The company’s total liabilities included a repayment of CAD 5,000,000 during the nine months ended September 30, 2022[18]. - The company’s net debt as of September 30, 2022, was CAD 36,503,526, a decrease from CAD 42,329,628 as of December 31, 2021[94]. Cash Flow and Capital Expenditures - The company reported operating costs of CAD 5,061,271 for the three months ended September 30, 2022, significantly higher than CAD 1,730,104 for the same period in 2021[13]. - The company incurred capital expenditures of CAD 6,143,475 for property, plant, and equipment during the nine months ended September 30, 2022[18]. - The operating cash flow for the nine months ended September 30, 2022, was CAD 8,092,291, compared to CAD 1,289,438 for the same period in 2021[18]. - The company’s capital expenditures amounted to CAD 1.020 million in Q3 2022, compared to CAD (93) thousand in Q4 2021[111]. Debt and Financing - The company has drawn down CAD 15 million from its subordinated debt financing due on May 15, 2023[24]. - The company made total principal payments of CAD 5.0 million in the second quarter of 2022, fulfilling its obligations under the 2022 restructuring agreement[26]. - The company has waived certain financial covenants under its debt agreements, which may impact its ability to secure future financing[26]. - The company agreed to restructure its loan agreement on March 11, 2022, with a total principal repayment obligation of CAD 5 million by September 30, 2022, and an additional CAD 1 million by March 31, 2023[178]. Production and Operational Metrics - Average daily production of natural gas was 10,500 thousand cubic feet per day in Q3 2022, showing an increase from previous quarters[111]. - The average daily sales volume was 1,887 barrels of oil equivalent per day in Q3 2022, compared to 1,863 barrels in Q4 2021[111]. - The company’s total production for the nine months ending September 30, 2022, was 2,742 barrels of oil equivalent per day, a 21% increase from 2,271 barrels per day in the same period of 2021[119]. Tax and Regulatory Matters - The average royalty tax rate for the company was 22% for the three months and 17% for the nine months ended September 30, 2022, reflecting increases of 107% and 72% compared to the same periods in 2021[137]. - The company expects its actual royalty tax rate for the remainder of 2022 to be between 15% and 20%, benefiting from the modernization framework in Alberta[139]. Management and Corporate Governance - Total compensation for key management personnel for the three months and nine months ended September 30, 2022, was CAD 0.26 million and CAD 0.75 million, respectively, compared to CAD 0.20 million and CAD 0.60 million for the same periods in 2021[76]. - The company has not declared or paid any dividends since its establishment, focusing on maintaining financial flexibility and capital management[93]. Risks and Uncertainties - The company has significant uncertainty regarding its ability to continue as a going concern, dependent on generating positive cash flow from operations and obtaining financing[27]. - The company faces liquidity risk, with total financial liabilities amounting to CAD 39.88 million, with various due dates outlined[85].

Financial Performance - Production revenue increased by 81% to CAD 8,893 thousand for the three months ended June 30, 2022, compared to CAD 4,909 thousand in the same period of 2021[10]. - Operating netback rose by 298% to CAD 4,347 thousand for the three months ended June 30, 2022, from CAD 1,092 thousand in the same period of 2021[10]. - The company reported a basic and diluted loss per share of CAD (0.01) for the three months ended June 30, 2022, compared to a profit of CAD 0.01 in the same period of 2021, representing a change of (346%)[10]. - The company recorded a net income of CAD 5.36 million in Q2 2022, a significant improvement from a net loss of CAD 1.55 million in Q4 2021[29]. - Total revenue increased by 81% to CAD 8,908 thousand for the three months ended June 30, 2022, compared to CAD 4,916 thousand in the same period of 2021[44]. - Adjusted EBITDA for the six months ended June 30, 2022, reached CAD 5,122,000, reflecting an increase of 872% from CAD 527,000 in the same period of 2021[137]. - Net income for the six months ended June 30, 2022, was CAD 8,357,245, compared to a net loss of CAD 4,766,999 for the same period in 2021[190]. - For the three months ended June 30, 2022, the net income was CAD 5,358,045 compared to a net loss of CAD (1,925,246) for the same period in 2021, indicating a significant improvement[197]. Production and Sales - Average daily sales volume decreased by 20% to 1,863 barrels of oil equivalent per day for the three months ended June 30, 2022, from 2,317 barrels in the same period of 2021[10]. - Average daily production in Q2 2022 was 1,855 barrels of oil equivalent per day, compared to 2,054 barrels in Q1 2022, indicating a decrease of about 9.7%[28]. - The average daily natural gas production was 10,371 thousand cubic feet per day in Q2 2022, down from 11,470 thousand cubic feet per day in Q1 2022, a decline of approximately 9.6%[28]. - Natural gas production decreased by 18% to 10,371 thousand cubic feet per day for the three months ended June 30, 2022, compared to 12,607 thousand cubic feet per day in the same period of 2021[37]. - Oil production fell by 26% to 56 barrels per day for the three months ended June 30, 2022, down from 76 barrels per day in the same period of 2021[42]. - Total sales volume decreased by 20% to 1,863 barrels of oil equivalent per day for the three months ended June 30, 2022, compared to 2,317 barrels of oil equivalent per day in the same period of 2021[37]. Assets and Liabilities - Total assets as of June 30, 2022, were CAD 58,177 thousand, up from CAD 42,205 thousand in 2021[11]. - Total liabilities decreased to CAD 40,301 thousand as of June 30, 2022, compared to CAD 41,752 thousand in 2021[11]. - The company’s total equity increased to CAD 17,876 thousand as of June 30, 2022, from CAD 453 thousand in 2021[11]. - The company's long-term debt decreased significantly to CAD 2,546 thousand as of June 30, 2022, from CAD 17,355 thousand at the end of 2021[79]. - The debt-to-equity ratio improved to 66% as of June 30, 2022, compared to 90% at the end of 2021[79]. - Total liabilities decreased to CAD 40,300,736 as of June 30, 2022, from CAD 47,968,368 as of December 31, 2021, a reduction of approximately 16.0%[186]. - Shareholders' equity increased significantly to CAD 17,876,254 as of June 30, 2022, from CAD 5,013,809 as of December 31, 2021, reflecting a growth of approximately 256.5%[186]. Costs and Expenses - Operating costs decreased to CAD 3.32 million in Q2 2022 from CAD 3.28 million in Q1 2022, showing a slight reduction of about 1.5%[29]. - Operating costs for the six months ended June 30, 2022, were CAD (6,602,000), a decrease of 10% from CAD (7,367,000) in the same period of 2021[136]. - General and administrative expenses rose by 48% to CAD 703,000 for the three months ended June 30, 2022, and by 12% to CAD 1,327,000 for the six months ended June 30, 2022[58]. - Financial expenses decreased by 29% to CAD 876,000 for the three months ended June 30, 2022, and by 28% to CAD 1,775,000 for the six months ended June 30, 2022[60]. Future Plans and Strategies - The company plans to continue focusing on exploration and development in its core operating areas in Western Canada, particularly in Alberta Foothills and Peace River[3]. - The company plans to explore additional drilling targets in 2022 and 2023 to capitalize on strong pricing conditions, contingent on available capital[23]. - The company anticipates increased production from Basing and Voyager, contributing to future revenue growth[53]. - The company is actively seeking additional financing opportunities, including alternative debt arrangements and joint ventures, to manage capital expenditures and leverage[128]. Shareholder Information - As of June 30, 2022, the company had 432,886,520 ordinary shares in circulation, which increased to 449,886,520 shares by the date of the management discussion[96]. - The company has not declared any dividends for the three and six months ended June 30, 2022, and 2021[103]. - The company has a total of 432,886,520 shares issued as of June 30, 2022[152]. - Aspen Investment Holdings Limited holds 181,194,306 shares, representing approximately 41.86% of the total issued shares[157]. - The company has approved a stock option plan allowing the issuance of options not exceeding 10% of the total issued and outstanding shares as of the approval date[167]. Compliance and Governance - The company has adhered to the corporate governance code during the reporting period, ensuring proper regulation of business activities and decision-making processes[143]. - The company is committed to conducting business transparently and responsibly within the communities it operates[132]. - JX Energy's internal financial reporting controls were assessed as effective based on the 2013 Internal Control - Integrated Framework[126]. - The company has complied with all covenants related to its subordinated debt as of June 30, 2022[90].