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]