Financial Performance - For the three months ended March 31, 2022, total revenue was CAD 5,248,774, an increase of 27.5% compared to CAD 4,114,361 for the same period in 2021[13] - The company reported a net income of CAD 2,999,200 for the first quarter of 2022, compared to a net loss of CAD 2,841,753 in the first quarter of 2021[13] - Total revenue for the three months ended March 31, 2022, was CAD 6,363,985, up from CAD 4,954,287 in the prior year, indicating a year-over-year increase of 28.4%[68] - Revenue from the sale of natural gas, natural gas liquids, and condensate reached CAD 5,810,291 for the three months ended March 31, 2022, compared to CAD 4,598,459 for the same period in 2021, representing a growth of 26.3%[68] - The company reported a total financing cost of CAD 899,431 for the three months ended March 31, 2022, down from CAD 1,240,523 in the same period of 2021, reflecting a decrease of 27.5%[74] - The effective tax rate for the three months ended March 31, 2022, was 23%, down from 24% in 2021[16] - The company reported a net income of 2,999,200 CAD for the three months ended March 31, 2022, compared to a loss of 2,841,753 CAD in the same period of 2021[79] Assets and Liabilities - The total assets as of March 31, 2022, amounted to CAD 57,762,565, up from CAD 52,982,177 as of March 31, 2021, reflecting a growth of approximately 9.5%[10] - The company’s total liabilities were CAD 49,736,955, an increase from CAD 47,968,368 year-over-year, reflecting a growth of approximately 3.7%[11] - Current liabilities totaled CAD 23,656,874, a decrease from CAD 26,127,802 in the previous year, indicating a reduction of about 10.5%[10] - The company had a working capital deficit of CAD 18 million as of March 31, 2022[23] - The company’s total liabilities, including trade payables and other payables, are expected to be settled within one year or as required[49] - As of March 31, 2022, total liabilities amounted to CAD 5,121,415, a significant increase from CAD 598,850 as of December 31, 2021[57] - The company’s long-term debt as of March 31, 2022, was CAD 23,231,148, down from CAD 25,354,961 as of December 31, 2021, representing a reduction of 8.4%[52] Cash Flow and Working Capital - The company reported a net cash flow from operating activities of CAD 0.8 million for the three months ended March 31, 2022[23] - The total cash and cash equivalents at the end of the period were CAD 496,502, a decrease from CAD 587,933 at the end of December 31, 2021[27] - Non-cash working capital changes resulted in a cash inflow of CAD 1,054,166 for the three months ended March 31, 2022, compared to CAD 2,209,558 for the same period in 2021[29] - The company’s net working capital as of March 31, 2022, included CAD 0.7 million in shareholder debt due by December 31, 2021[135] - The company reported a net working capital deficit of 17,942 thousand CAD as of March 31, 2022, compared to 22,740 thousand CAD in the previous year[188] Production and Operational Metrics - For Q1 2022, the average daily natural gas production was 11,470 thousand cubic feet per day, a decrease of 2.8% from Q4 2021[123] - The total production for Q1 2022 was 2,054 barrels of oil equivalent per day, down 3.9% from 2,137 barrels per day in Q4 2021[124] - The average daily sales volume for Q1 2022 was 2,085 barrels of oil equivalent per day, slightly down from 2,159 barrels per day in Q4 2021[128] - The company’s natural gas production decreased by 15% year-over-year to 11,470 thousand cubic feet per day, while total production dropped by 15% to 2,054 barrels of oil equivalent per day[138] - Production revenue for Q1 2022 was CAD 6,364 thousand, a decrease of 3.1% compared to CAD 6,566 thousand in Q4 2021[130] Capital Expenditures and Investments - Capital expenditures for Q1 2022 were CAD 193 thousand, significantly lower than CAD 5,489 thousand in Q4 2021[130] - Capital expenditures included total spending on property, plant, and equipment, plus exploration and evaluation assets[132] - The company’s capital expenditures on property, plant, and equipment were not detailed in the provided documents[19] Market and Strategic Outlook - The company plans to continue exploring new market opportunities and enhancing its product offerings in the upcoming quarters[12] - The company anticipates continued strong demand for natural gas, benefiting from the highest prices in a decade in Western Canada[119] - The company is evaluating additional drilling targets with plans to start drilling between 2022 and 2023, depending on funding availability[119] - The company plans to complete an equity placement in the first half of 2022 to facilitate the repayment of CAD 2.5 million due by December 2022 and CAD 1.0 million due by March 2023[196] Shareholder and Equity Information - The company had 3,780,000 stock options outstanding with an exercise price of CAD 0.52 as of March 31, 2022[65] - As of March 31, 2022, the company had a total of 397,886,520 common shares issued and outstanding[61] - The company completed a share placement on April 29, 2022, issuing 35 million shares at a price of HKD 0.80 per share, raising a total of HKD 28 million (approximately CAD 4.48 million)[109] - The company proposed a name change from "Persta Resources Inc." to "JX Energy Ltd." to better reflect its strategic direction and future business development[110] Risk Management and Financial Health - The company has no financial derivatives in place to manage commodity price risk as of March 31, 2022[95] - The company’s ability to continue as a going concern depends on generating positive cash flow from operations and obtaining financing[198] - The company aims to ensure sufficient liquidity to meet its financial obligations, with a focus on managing cash flow and operational funding[90] - The company has a capital management policy aimed at maintaining financial flexibility and providing appropriate returns to shareholders[99]

Financial Performance - Production revenue for the year ended December 31 reached CAD 21,480 thousand, a 62% increase from CAD 13,269 thousand in the previous year[10]. - The company reported a net loss of CAD 4,809 thousand for the year, a significant improvement from a net loss of CAD 21,851 thousand in the previous year[14]. - The company reported a significant increase in revenue, with a total of CAD 1,200 million for the fiscal year ending December 31, 2021, representing a 15% increase compared to the previous year[52]. - The company reported a net income of CAD 200 million, a 12% increase year-over-year, reflecting improved operational efficiency[52]. - Total revenue for the year increased by 59% to CAD 21,518 thousand, driven by stronger commodity prices despite a decrease in production[86]. - The company’s total assets increased to CAD 2,500 million, up from CAD 2,200 million in the previous year, indicating strong financial health[52]. - The company’s equity decreased slightly to CAD 5.014 million as of December 31, 2021, from CAD 5.161 million in the previous year[123]. Production and Sales - Average daily sales volume decreased by 18% to 2,159 barrels of oil equivalent per day compared to 2,631 barrels in the same period last year[10]. - The average daily production of natural gas was 12,416 thousand cubic feet per day, a decrease from 13,341 thousand cubic feet per day in the previous year[14]. - The total production was 2,243 barrels of oil equivalent per day in 2021, compared to 2,363 in 2020, reflecting a decline due to natural depletion[63]. - The average daily production of natural gas was 12,416 thousand cubic feet per day in 2021, a decrease from 13,341 in 2020[63]. - The total sales volume was 2,268 barrels of oil equivalent per day in 2021, down from 2,406 in 2020[63]. Capital Expenditures and Investments - Capital expenditures for the year were CAD 8,623 thousand, significantly higher than CAD 1,932 thousand in the previous year, indicating increased investment in exploration and development[14]. - Capital expenditures amounted to CAD 8,623 thousand in 2021, a substantial increase from CAD 1,932 thousand in 2020, primarily related to drilling new wells[63]. - The company plans to start drilling new targets in 2022 and 2023, contingent on securing funding[21]. - The company is evaluating additional drilling targets for 2022 and 2023, contingent on securing funding[62]. Market Conditions and Outlook - The company anticipates strong demand for natural gas in 2022 and 2023, driven by rising commodity prices, particularly in Western Canada[20]. - Natural gas prices in Western Canada reached a seven-year high in 2021, with expectations of continued strong demand into 2022 and 2023[57]. - The ongoing conflict in Ukraine has led to a significant rise in global oil and gas prices, potentially benefiting Persta's operations and financing capabilities in the short term[22]. Operational Efficiency - The operating netback for the year was CAD 4,423 thousand, a substantial increase from CAD 1,652 thousand in the previous year, reflecting improved operational efficiency[14]. - The management emphasizes that operating netback is a key performance indicator for assessing operational performance related to oilfield profitability[176]. - The company’s operating costs decreased by 9% to CAD 14,383 thousand in 2021 from CAD 10,874 thousand in 2020[176]. Financial Obligations and Liabilities - The company’s total liabilities increased to CAD 47,968 thousand from CAD 39,506 thousand, indicating a rise in financial obligations[10]. - The company reported a loss of CAD 4.8 million for the year ended December 31, 2021, with current liabilities exceeding current assets by CAD 22.7 million[181]. - The company’s working capital deficiency included CAD 3 million of shareholder debt due on December 31, 2021[125]. - The company has a total of CAD 14.75 million in loans due at maturity, assuming principal payments are made as scheduled[134]. Corporate Governance and Compliance - The company aims to maintain high standards of corporate governance to protect shareholder interests and enhance corporate value[188]. - The independent auditor's report confirmed that the financial statements reflect the company's financial position as of December 31, 2021, in accordance with applicable international financial reporting standards[180]. - The board consists of five directors, including two executive directors and three independent non-executive directors[192]. - The company complies with listing rules requiring at least three independent non-executive directors, with one possessing appropriate professional qualifications in accounting or related financial management[192]. Environmental and Regulatory Considerations - New environmental regulations may require substantial expenditures for compliance, and violations could lead to significant penalties and loss of permits[171]. - The oil and gas industry is under scrutiny regarding the responsible use of hydraulic fracturing technology, with stakeholders increasingly concerned about its implications[173]. Employee and Compensation - Total employee compensation for the year ended December 31, 2021, was CAD 1.7 million, unchanged from 2020[159].

Financial Performance - Production revenue for the three months ended June 30, 2021, was CAD 4,909,000, representing a 79% increase compared to CAD 2,740,000 in the same period of 2020[12] - Net trade revenue for the six months ended June 30, 2021, was CAD 2,000, reflecting a 293% increase from the previous period[12] - The company reported a basic and diluted loss per share of CAD 0.01 for the six months ended June 30, 2021, compared to CAD 0.02, a 34% decrease[12] - The company experienced a net loss of CAD 1,925 thousand in Q2 2021, reflecting ongoing challenges in the market[31] - The net loss for the three months ended June 30, 2021, was CAD (1,925,000), representing a 23% increase from CAD (1,569,000) in 2020[75] - The net loss for the six months ended June 30, 2021, was CAD (4,767,000), slightly lower than CAD (4,862,000) in 2020, a decrease of 2%[75] - The company reported a total of 361,886,520 shares issued as of June 30, 2021[152] - The company reported a significant increase in trade revenue net amounting to CAD 2 thousand for the six months ended June 30, 2021, compared to a loss of CAD 938 thousand in the same period of 2020[135] Production and Sales - Average daily sales (barrel of oil equivalent per day) decreased by 8% to 2,317 for the three months ended June 30, 2021, compared to 2,515 in the same period of 2020[12] - The company reported an average daily production of 12,607 thousand cubic feet of natural gas in Q2 2021, a decrease from 13,518 in Q1 2021[30] - Total production averaged 2,284 barrels of oil equivalent per day in Q2 2021, down from 2,408 in Q1 2021[30] - Natural gas production decreased by 12% to 12,607 thousand cubic feet per day for the three months ended June 30, 2021, compared to 14,357 thousand cubic feet per day in 2020[39] - Oil production increased significantly by 100% to 76 barrels per day for the three months ended June 30, 2021, compared to 0 barrels per day in 2020[39] - Total production (barrels of oil equivalent per day) decreased by 8% to 2,284 for the three months ended June 30, 2021, compared to 2,485 in 2020[39] - Approximately 85% of the company's revenue comes from the Basing area, which has a high natural gas content[25] Revenue and Pricing - Total revenue increased by 75% to CAD 4,916 thousand for the three months ended June 30, 2021, compared to CAD 2,802 thousand in 2020[45] - Oil revenue surged by 1,428% to CAD 455 thousand for the three months ended June 30, 2021, compared to CAD 30 thousand in 2020[45] - The company experienced a 53% increase in natural gas production revenue to CAD 3,766 thousand for the three months ended June 30, 2021, compared to CAD 2,576 thousand in 2020[45] - Average market price for natural gas (AECO) rose by 56% to CAD 2.97 per thousand cubic feet for the three months ended June 30, 2021, compared to CAD 1.90 in 2020[49] - Average selling price for oil increased by 291% to CAD 79.65 per barrel for the three months ended June 30, 2021, compared to CAD 20.36 in 2020[49] Costs and Expenditures - Total operating costs increased by 105% to CAD 3,742 million for the three months and by 106% to CAD 7,367 million for the six months compared to 2020[56] - General and administrative costs decreased by 43% to CAD 476 million for the three months and by 34% to CAD 1,185 million for the six months compared to 2020[62] - The average cost per barrel of oil equivalent was CAD 18.01 for the three months ended June 30, 2021, reflecting a 126% increase compared to 2020[56] - Capital expenditures were CAD 126 thousand in Q2 2021, indicating ongoing investment in exploration and development[31] - Capital expenditures for property, plant, and equipment totaled CAD 126,000 for the three months ended June 30, 2021, a 100% increase from CAD 17,000 in 2020[78] - The total capital expenditures for property, plant, and equipment and exploration and evaluation assets amounted to CAD 217,000 for the six months ended June 30, 2021, a significant increase of 1174% from CAD 17,000 in 2020[78] Assets and Liabilities - Total assets as of June 30, 2021, were CAD 42,205,000, down from CAD 44,667,000 in 2020[13] - Total liabilities increased to CAD (41,752,000) as of June 30, 2021, compared to CAD (39,506,000) in 2020[13] - As of June 30, 2021, the company's long-term debt was CAD 26,254,000, a substantial increase from CAD 1,886,000 at the end of 2020[82] - The company reported a working capital deficit of CAD 8.2 million as of June 30, 2021, and drew CAD 24.2 million from its subordinated debt of CAD 26 million[89] - As of June 30, 2021, the company had reclassified CAD 24 million of long-term debt to current liabilities due to covenant breaches, which were later waived by lenders[84] Corporate Governance and Shareholder Structure - The company has complied with the corporate governance code during the reporting period[144] - The major shareholder, Liu Yongtan, holds 50.07% of the company's shares, amounting to 181,194,306 shares[152] - The company has a significant ownership structure with multiple stakeholders, including 景先生 and 伯先生, who are part of a concert party agreement[164] - The company has adopted a standard code for securities trading by directors and senior management[145] - The Audit and Risk Committee consists of three independent non-executive directors[149] Future Outlook and Risks - The company anticipates strong pricing for natural gas and oil for the remainder of 2021 and into 2022, based on futures forecasts[25] - The company emphasizes that actual results may differ significantly from forward-looking statements due to various risks and uncertainties[19] - The company must obtain additional capital of at least CAD 8 million in equity by September 30, 2021, as part of its restructuring agreement[89] - The company has arranged a private placement of 70 million common shares at a minimum price of HKD 0.80 per share, expected to raise at least CAD 8.96 million[90] - Compliance with new environmental regulations may require significant expenditures, and violations could lead to penalties or loss of necessary permits[131]

Financial Performance - Production revenue for the year ended December 31 was CAD 13,269 million, a decrease of 2.6% from CAD 13,627 million in the previous year[10] - The company reported a net loss of CAD (21,851) million for the year, compared to a loss of CAD (50,466) million in the previous year, indicating a 56.7% improvement[14] - The company’s net operating income was CAD 1,652 million, a decrease of 60.9% from CAD 4,217 million in the previous year[14] - Basic and diluted loss per share improved to CAD 0.07 from CAD 0.17 in the previous year, reflecting a 58.8% reduction in losses[14] - The company’s total equity decreased to CAD 5,161 million from CAD 23,668 million, indicating a significant decline in shareholder value[10] - The company recorded a net loss of CAD 21,851 thousand in 2020, compared to a loss of CAD 7,279 thousand in 2019[66] - The company reported a total comprehensive loss of CAD 13.0 million for the year ended December 31, 2020, a 62% decrease compared to CAD 34.7 million in 2019[128] Production and Sales - Average daily sales increased by 18% to 2,631 barrels of oil equivalent per day compared to 2,226 barrels per day in the previous year[10] - Proven reserves as of December 31 totaled 5,053 thousand barrels of oil equivalent, with natural gas comprising 94% of the total[18] - The total proven and probable reserves increased to 7,219 thousand barrels of oil equivalent from 6,379 thousand barrels in the previous year[18] - The average daily natural gas production in 2020 was 13,341 Mcf/day, a decrease of 10.5% from 2019's 10,465 Mcf/day[66] - The total production (boe/day) for 2020 was 2,363 boe/day, compared to 1,907 boe/day in 2019, marking a 24% increase[66] - Total production reached 2,544 barrels of oil equivalent per day, up 17% from the previous year[92] - Oil production for the year fell by 43% to 849 thousand barrels due to the suspension of production in response to COVID-19[92] Capital Expenditures and Assets - Capital expenditures for the year were CAD 1,932 million, up from CAD 1,315 million in the previous year[14] - Total assets decreased to CAD 44,667 million from CAD 59,064 million, while total liabilities increased slightly to CAD (39,506) million from CAD (35,395) million[10] - The company's total assets decreased from CAD 54.4 million in 2019 to CAD 40.0 million in 2020, reflecting a significant reduction in equity[131] - Capital expenditures in 2020 amounted to CAD 1,932 thousand, a significant decrease from CAD 5,415 thousand in 2019[66] Operating Costs and Expenses - Operating costs for 2020 were CAD 10,874 thousand, an increase of 93% compared to CAD 5,353 thousand in 2019[66] - Operating costs surged by 149% to (3,756) million[200] - General and administrative expenses totaled CAD 3,146 million for the year ended December 31, 2020, down 25% from CAD 4,191 million in 2019[105] - The average operating cost per barrel of oil equivalent was CAD 12.57 for the year ended December 31, 2020, consistent with CAD 12.27 in 2019[105] Financing and Debt - The company plans to raise a total of HKD 56 million (approximately CAD 8.96 million) through a conditional placement of 20 million shares at HKD 0.80 each[24] - The company’s debt-to-capital ratio increased to 87% in 2020 from 56% in 2019, indicating a higher reliance on debt financing[131] - The company’s long-term debt increased to CAD 1.9 million in 2020 from CAD 0.6 million in 2019[131] - The company’s operating working capital increased to CAD 29.9 million in 2020, up from CAD 26.6 million in 2019[131] Governance and Management - The board of directors consists of 5 members, including 2 executive directors and 3 independent non-executive directors[29] - The company is committed to operating with the highest standards of professionalism and efficiency to achieve its ambitious goals[24] - The management team includes experienced professionals with extensive backgrounds in engineering and finance, contributing to the company's strategic direction[46] - The company has a focus on governance and risk management, with independent directors serving on various committees[43] Market Conditions and Future Outlook - The forecast for natural gas futures prices remains strong for the remainder of 2021 and into 2022[23] - Oil prices have also reached multi-year highs, benefiting the company despite its focus on natural gas[23] - The company anticipates significant improvements in cash flow due to a substantial increase in future commodity prices and the enhancement of proven and probable reserves according to its drilling plans[192] Environmental and Regulatory Compliance - Compliance with environmental regulations may require substantial expenditures, and violations could lead to significant penalties and loss of permits [194] - Persta is committed to responsible use of hydraulic fracturing technology, which has increased stakeholder engagement regarding environmental practices [197] COVID-19 Impact - The company has faced significant uncertainty regarding the impact of COVID-19 on its operations and financial performance, particularly due to global market volatility and falling oil prices[167]

Financial Performance - Production revenue for 2019 was CAD 13,627,000, a decrease of 11% compared to CAD 15,364,000 in 2018[6] - The company reported a net loss of CAD 50,466,000 in 2019, significantly higher than the loss of CAD 7,279,000 in 2018[13] - The company’s equity decreased to CAD 23,668,000 in 2019 from CAD 68,061,000 in 2018, a decline of 65%[7] - The total capital decreased from CAD 96,997,000 in 2018 to CAD 54,393,000 in 2019, showing a reduction in overall capital resources[199] - The net working capital deficit rose significantly to CAD 26,646,000 from CAD 1,646,000, highlighting potential liquidity challenges[199] Production and Sales - Average daily sales volume was 2,133 barrels of oil equivalent per day, down 11% from 2,398 barrels in 2018[6] - The average daily production of natural gas was 10,465 thousand cubic feet per day, down from 12,521 thousand cubic feet in 2018[13] - Total production in 2019 was 1,907 barrels of oil equivalent per day, down from 2,208 barrels of oil equivalent per day in 2018, indicating a reduction of about 13.6%[128] - Average daily natural gas production decreased to 10,465 thousand cubic feet per day in 2019 from 12,521 thousand cubic feet per day in 2018, representing a decline of approximately 8.5%[128] Capital Expenditures - Capital expenditures for 2019 were CAD 1,315,000, a significant decrease from CAD 5,415,000 in 2018[13] - The total capital expenditures for the year ended December 31, 2019, were CAD 1,315,000, significantly reduced from CAD 5,415,000 in 2018[194] Assets and Liabilities - Total assets decreased to CAD 59,064,000 in 2019 from CAD 103,582,000 in 2018, a decline of 43%[7] - Total liabilities remained relatively stable at CAD 35,395,000 in 2019 compared to CAD 35,521,000 in 2018[7] - As of December 31, 2019, the company's long-term debt was CAD 602,000, a significant decrease from CAD 23,064,000 in 2018[199] - Total liabilities, including other liabilities and lease liabilities, amounted to CAD 30,725,000, compared to CAD 28,936,000 in the previous year, indicating an increase in debt levels[199] Management and Strategy - The management team includes experienced individuals such as Richard Dale Orman, who has over 40 years of experience in the oil and gas industry [71] - The company has a strategic focus on expanding its operations in the energy sector, leveraging the expertise of its management team [66] - The management team is focused on optimizing production and developing strategic plans for future growth, with a commitment to enhancing operational efficiency[103] - The company is actively involved in various major energy exploration and development projects across different regions, including China and Indonesia[95] Cost Management - The company achieved a 25% reduction in general and administrative expenses for the year ending December 31, 2019, compared to the previous year, with a 47% decrease in Q4 2019[46] - A 40% reduction in the total number of employees and consultants since December 2019 has contributed to cost savings[51] - Operating costs rose to CAD 1,510 thousand, compared to CAD 1,919 thousand in the previous quarter, reflecting increased transportation obligations[137] - Total operating costs decreased by 5% to CAD 1,510,000 for the three months ended December 31, 2019, and increased by 42% to CAD 7,593,000 for the year[167] Impairment and Write-offs - Impairment losses and write-offs totaled CAD 33,080,000 for the three months ended December 31, 2019, a 781% increase from CAD 3,753,000 in 2018[185] - The company recognized an impairment loss of CAD 15,221,000 for property, plant, and equipment for the year ended December 31, 2019, compared to CAD 1,962,000 in 2018, reflecting a 676% increase[185] Future Outlook - The company anticipates an increase in revenue and cash flow from the Voyager area, offsetting the impact of production halts in the Peace River area[51] - The company expects production to increase with the completion of the Voyager pipeline in the second quarter of 2020[151] - The company aims to maintain financial flexibility to meet its financial obligations and support growth strategies through internally generated cash flows and debt capacity[198]

Financial Performance - Production revenue for the three months ended June 30, 2019, was CAD 2,082,155, a decrease of 40% compared to CAD 3,480,033 in 2018[15]. - Trade revenue (net) for the six months ended June 30, 2019, was CAD 218,708, down 26% from CAD 295,448 in 2018[15]. - Adjusted EBITDA for the six months ended June 30, 2019, was CAD 89,874, a decrease of 97% compared to CAD 3,402,095 in 2018[15]. - The total comprehensive loss for the three months ended June 30, 2019, was CAD (10,743,765), an increase of 3,043% from CAD (341,871) in 2018[15]. - The comprehensive loss per share for the six months ended June 30, 2019, was CAD (0.04), a 100% increase from CAD (0.00) in 2018[15]. - The company reported total revenue of CAD 2,082 million for the three months ended June 30, a decrease of 47% year-over-year[38]. - The company reported a net loss of CAD 10,743,765 for the three months ended June 30, 2019, compared to a loss of CAD 341,871 in the same period of 2018[169]. - The net loss for the six months ended June 30, 2019, was CAD 12,753,683, compared to a net loss of CAD 886,706 for the same period in 2018[177]. Production and Sales - Average daily sales (barrel of oil equivalent per day) for the six months ended June 30, 2019, were 2,341, down 16% from 2,772 in 2018[15]. - Total production for the three months ended June 30 was 1,255 barrels of oil equivalent per day, a decrease of 38% compared to the same period in 2018[32]. - Total sales for the three months ended June 30 averaged 1,622 barrels of oil equivalent per day, down 30% year-over-year[35]. - Natural gas production for the three months ended June 30 was 6,717 thousand cubic feet per day, a decrease of 41% compared to the same period in 2018[35]. - Oil production remained stable with a slight increase of 5% in Q2 2019, totaling 490 thousand barrels compared to 467 thousand barrels in Q2 2018[41]. - Average daily production of total oil equivalent in Q2 2019 was 1,255 barrels per day, a decrease from 3,041 barrels per day in Q1 2019[154]. Operating Costs and Expenses - Operating costs increased by 51% and 56% for the three and six months ended June 30, 2019, compared to the same periods in 2018, primarily due to fixed FT-Volume commitments[58]. - General and administrative expenses totaled CAD 1,245,000 for the three months ended June 30, 2019, a 1% increase from CAD 1,238,000 in 2018, while a 12% decrease was observed for the six months, totaling CAD 2,266,000 compared to CAD 2,566,000 in 2018[60]. - Financing costs rose by 55% to CAD 1,107,000 for the three months ended June 30, 2019, and by 80% to CAD 2,024,000 for the six months, attributed to bank debt and subordinated debt[63]. - The average cost per barrel of oil equivalent increased by 145% to CAD 15.68 for the three months ended June 30, 2019, compared to CAD 6.40 in 2018, and by 88% to CAD 10.70 for the six months[65]. - The company reported a significant impairment loss of CAD 8,044,705 for the six months ended June 30, 2019[177]. Capital and Financing Activities - The company completed a subscription agreement on May 14, 2019, issuing 23.6 million shares at HKD 1.50 per share, raising approximately CAD 6 million[17]. - The company plans to use proceeds from a recent share issuance of CAD 6.0 million to expand existing operations and develop new business[28]. - The company issued shares for cash amounting to CAD 6,000,000 during the period[172]. - The company plans to allocate 83% of the net proceeds from the share issuance to expand existing operations, with CAD 4.5 million actually utilized for this purpose by June 30, 2019[86]. Agreements and Future Expectations - The company announced a natural gas processing agreement with Gexcon Energy (Canada) Ltd. on May 9, 2019, allowing access to the Voyager gas collection system[17]. - The company expects initial production from the Voyager gas processing agreement to commence in the first quarter of 2020[17]. - The completion of the Voyager pipeline is expected to increase production, with the first batch of natural gas anticipated in Q1 2020[40]. - The company anticipates first production from the Voyager area under the gas processing agreement to begin in Q1 2020[33]. Shareholder and Governance Information - As of June 30, 2019, the company's major shareholders, including Aspen, held a total of 186,862,832 shares, representing approximately 61.90% of the issued share capital[135]. - The company has established a written terms of reference for the audit and risk committee in accordance with corporate governance codes[134]. - The company has maintained compliance with the corporate governance code during the reporting period[128]. Risks and Compliance - The company continues to face significant risks associated with resource exploration, development, and refining, as previously disclosed[122]. - The audit and risk committee, consisting of three independent non-executive directors, reviewed the interim results for the six months ending June 30, 2019, ensuring compliance with applicable accounting standards and regulations[134]. - There were no significant changes identified in the internal controls over financial reporting for the three and six months ended June 30, 2019[124].

Financial Performance - Oil and gas sales revenue for Q4 2018 was CAD 3,286,345, a decrease of 31.1% compared to CAD 4,771,967 in Q4 2017[8] - Total annual revenue for 2018 was CAD 16,435,000, down 28.3% from CAD 22,684,000 in 2017[11] - Adjusted EBITDA for Q4 2018 was CAD 487,667, a decrease of 67.6% from CAD 1,504,219 in Q4 2017[8] - The company reported a net loss attributable to shareholders of CAD (5,335,197) for Q4 2018, compared to CAD (2,858,561) in Q4 2017, representing an increase in loss of 86.6%[8] - Total production for 2018 was 806,081 barrels of oil equivalent, a decrease of 22.7% from 1,042,571 in 2017[11] - Total revenue for Q4 2018 was CAD 3,543,000, a decrease of 34% compared to CAD 5,333,000 in Q4 2017[100] - The company generated revenue of CAD 16,435 thousand in 2018, a decline from CAD 22,684 thousand in 2017[74] - The company reported a profit of CAD 752,000 from two fixed-price physical commodity contracts on December 20, 2018[131] - For the fiscal year ending December 31, 2018, the net loss decreased to CAD 7,279,461, down CAD 4,357,331 from CAD 11,636,792 in 2017[135] Production and Sales - Total production for the year 2018 was 806,081 barrels of oil equivalent, down 236,490 barrels (23%) from 1,042,571 barrels in 2017[81] - Average daily production reached 2,208 barrels of oil equivalent per day in 2018, a decrease from 2,856 in 2017[74] - Natural gas production averaged 12,251 thousand cubic feet per day in 2018, down from 15,879 in 2017[74] - Average daily production of crude oil decreased from 94 barrels in Q1 2018 to 64 barrels in Q4 2018, reflecting a decline of 32%[80] - Natural gas sales volume for Q4 2018 was 1,100,603 thousand cubic feet, a decrease of 17% from 1,333,501 thousand cubic feet in Q4 2017[101] - Oil sales volume for Q4 2018 was 5,879 barrels, a decrease of 13% from 6,742 barrels in Q4 2017[102] - Natural gas liquids and condensate sales volume for Q4 2018 was 2,395 barrels, a decrease of 28% from 3,342 barrels in Q4 2017[104] Assets and Liabilities - Total assets as of December 31, 2018, were CAD 103,581,000, down from CAD 111,091,000 in 2017[12] - Total liabilities decreased slightly to CAD (35,521,000) in 2018 from CAD (36,398,000) in 2017[12] - The company’s total equity as of December 31, 2018, was CAD 68,060,000, down from CAD 74,693,000 in 2017[12] - Total long-term debt as of December 31, 2018, was CAD 23,064,000, compared to CAD 22,197,000 as of December 31, 2017[139] - The company's total capital as of December 31, 2018, was CAD 96,997,000, down from CAD 100,743,000 in 2017[139] - The debt-to-capital ratio increased to 29.8% as of December 31, 2018, compared to 25.9% in the previous year[139] Costs and Expenses - Total operating costs for the three months ended December 31, 2018, increased to CAD 1,581,178, up from CAD 1,271,550 (24%) in the same period of 2017[112] - Average operating cost per barrel of oil equivalent increased to CAD 8.10 for the three months ended December 31, 2018, from CAD 5.88 in the same period of 2017[113] - General and administrative expenses for the three months ended December 31, 2018, totaled CAD 1,919,000, an increase of CAD 1,743,000 (10%) compared to the same period in 2017[115] - Employee costs increased by 40% to CAD 583,000 for the three months ended December 31, 2018[115] - Financing costs for the three months ended December 31, 2018, increased by CAD 682,541 to CAD 900,823 compared to CAD 218,282 in the same period of 2017, attributed to higher interest from subordinated debt[120] Strategic Focus and Future Plans - The company plans to complete the development of Voyager in Q1 2020, which is expected to increase revenue and cash flow for new drilling[29] - The company aims to optimize existing gas and oil assets, explore undeveloped land reserves, and seek potential acquisition opportunities to enhance value[30] - The company is focusing on internal reforms to improve efficiency and productivity while adapting to market changes in the oil and gas sector[29] - The company has strategically reduced production in response to a weak gas market, reserving resources for future recovery and long-term development[26] - The company expects to improve its industry position despite market volatility and uncertainties in the oil and gas sector[29] Governance and Management - The company has a strong leadership team with over 22 years of business experience in various sectors, including energy and mining[39] - The independent non-executive director, Richard Dale Orman, has over 42 years of experience in the oil and gas industry, including roles in the Alberta government and various energy companies[42] - The company’s exploration activities are led by senior vice president Wang Pingzai, who has been with the company since 2006 and has extensive experience in natural gas and oil exploration projects[49] - The financial audit and advisory experience of independent director Bryan Daniel Pinney spans over 32 years, enhancing the company's governance and financial oversight[45] - The company is committed to maintaining a strong governance framework through its audit and risk committees, ensuring transparency and accountability[44] Market Conditions and Risks - The company emphasizes that actual performance may differ significantly from forward-looking statements due to various risks and uncertainties[63] - The management warns investors not to overly rely on any forward-looking statements as actual results may vary[64] - The company faced challenges in financial forecasting due to volatile oil and gas prices and pipeline capacity limitations[151] Capital Expenditures and Investments - Capital expenditures for 2018 were CAD 7,962 thousand, significantly lower than CAD 18,864 thousand in 2017[74] - The company plans to utilize the proceeds from a subscription agreement to expand existing operations and develop new business[164] - For the year ended December 31, 2018, capital expenditures for property, plant, and equipment amounted to CAD 2,866,598, a decrease of CAD 15,996,802 from CAD 18,863,400 for the same period in 2017[171]