ANNOUNCEMENT OF RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2019
Sunshine Oilsands Ltd.
Announcement of Results for the Fourth Quarter and the Year Ended December 31, 2019
CALGARY/HONG KONG –Sunshine Oilsands Ltd. (the “Company” or “Sunshine”) (HKEX: 2012) today announced its financial results for the fourth quarter and year ended December 31, 2019. The Corporation’s consolidated financial statements, notes to the consolidated financial statements, Management’s Discussion and Analysis and Annual Information Form have been filed on SEDAR (www.sedar.com) and with The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”) (www.hkexnews.hk) and are available on the Corporation’s website (www.sunshineoilsands.com). The Annual Information Form includes the Corporation’s reserves and resource data as at an effective date of December 31, 2019 as evaluated by GLJ Petroleum Consultants Ltd. and prepared in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. All figures are in Canadian dollars unless otherwise stated.
Message to Shareholders
For three and twelve months ended December 31, 2019, the Company’s average bitumen production was 1,589 bbls/day and 1,702 bbls/day respectively. Diluent was blended at a 17.8% and 18.3% volumetric rate for the three and twelve month ended December 31, 2019 with the bitumen as part of the production process to create the marketable “Dilbit” blend product. The average Dilbit sales volume was 2,015 bbls/day and 2,080 bbls/day for the three and twelve months ended December 31, 2019.
Sunshine’s Capital Raising Activities during 4Q19
On October 11, 2019, the Company entered into a settlement agreement for a total of 37,728,000 (pre-consolidation) Class “A” common shares at a price of HKD $0.063 per share for gross proceeds of HKD $2,376,846.73. On October 17, 2019, the Company completed the closing of this settlement agreement. This settlement agreement was entered into for settlement of trade payables with an independent third party.
On December 5, 2019, the Company entered into a settlement agreement for a total of 51,636,500 (pre-consolidation) Class “A” common shares at a price of HKD $0.0524 per share for gross proceeds of HKD $2,705,752.60. On December 16, 2019, the Company completed the closing of this settlement agreement. This settlement agreement was entered into for settlement of trade payables with an independent third party.
Summary of Financial Figures
For 4Q19, Dilbit sales increased by 91.7% to CAD $9.2 million from CAD $4.8 million mainly due to higher bitumen production, thus sales volumes, and an increase in realized bitumen price per barrel.
4Q19 bitumen production was 1,589 bbl/day.
As at December 31, 2019 and December 31, 2018, the Corporation notes the following selected balance sheet figures.
|
(Canadian $000s) |
|
December 31, 2019 |
|
December 31, 2018 |
|
Cash |
|
1,254 |
|
583 |
|
Trade and other receivables |
|
16,519 |
|
13,457 |
|
Prepaid expense and deposits |
|
6,934 |
|
3,208 |
|
Exploration and evaluation assets |
|
270,014 |
|
269,218 |
|
Property, plant and equipment |
|
479,055 |
|
492,815 |
|
Total liabilities |
|
601,773 |
|
527,328 |
|
Shareholders’ equity |
$ |
175,755 |
|
251,953 |
2020 Outlook
Sunshine intends to continue to focus on cost controls and on carefully improving production at West Ells. The Company intends to ramp up production when the heavy oil pricing environment improves. In addition, with the receipt of Shareholder’s approval for changes to the joint venture agreement and supporting agreements for the Muskwa and Godin area, the Company sees potential significant benefits resulting from re-activation of the Muskwa and Godin Area activities.
|
Kwok Ping Sun |
|
Gloria Ho |
|
Executive Chairman |
|
Chief Financial Officer |
About Sunshine Oilsands Ltd.
The Corporation is a Calgary based public corporation, listed on the Hong Kong Stock Exchange since March 1, 2012. The Corporation is focused on the development of its significant holdings of oil sands and heavy oil leases in the Athabasca oil sands region. The Corporation owns interests in oil sands and petroleum and natural gas leases in the Athabasca region of Alberta. The Corporation is currently focused on executing milestone undertakings in the West Ells project area. West Ells Phase 1 is operational and has an initial production target of 5,000 barrels per day.
For further enquiries, please contact:
Kwok Ping Sun
Executive Chairman
Tel: + 852-3188-9298
Gloria Ho
Chief Financial Officer
Tel: + 852-3188-9298
Email: [email protected]
Website: www.sunshineoilsands.com