ANNOUNCEMENT OF RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2020
Sunshine Oilsands Ltd.
Announcement of Results for the Third Quarter
ended September 30, 2020 and
3Q20 $0.3m Petroleum sales compared to
CAD$12.5m in 3Q19
3Q20 net recurring loss increased by 18.7% to
CAD$18.4 m versus CAD$15.5 m in 3Q19 3Q20 production decreased to 0 bbl/day
CALGARY/HONG KONG –Sunshine Oilsands Ltd. (the“Corporation”or “Sunshine”) (HKEX: 2012)today announced its financial results for the third quarter ended September 30, 2020. The Corporation’s condensed consolidated interim financial statements, notes to the condensed consolidated interim financial statements and management’s discussion and analysis 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). All figures used in this release are in Canadian dollars unless otherwise stated.
MESSAGE TO SHAREHOLDERS
For three and nine months ended September 30, 2020, the Company’s average bitumen production was zero bbls/day and 330 bbls/day respectively. The bitumen is blended with diluent as part of the production process to create the marketable “Dilbit” blend product. Diluent was blended at 19.6% volumetric rate for the nine months ended September 30, 2020. The average Dilbit sales volume was 91 bbls/day and 391 bbls/day for the three and nine months ended September 30, 2020.
SUNSHINE’S CAPITAL RAISING ACTIVITIES DURING 3Q19
During the nine months ended September 30, 2020, the Corporation issued no new Common Shares.
Summary of Financial Figures
For 3Q20, net Dilbit sales decreased to $0.3 million from $12.5 million for the same period of 2019 mainly due to temporary suspension of production since March 30, 2020. Net recurring loss increased by 18.7% to CAD $18.4 million from CAD $15.5 million in 3Q19.
As at September 30, 2020 and December 31, 2019, the Corporation notes the following selected balance sheet figures.
|
|
(Canadian $000s) |
September 30, |
December 31, |
|
|
|
2020 |
2019 |
|
|
|
|
|
|
|
Cash |
609 |
1,254 |
|
|
Trade and other receivables |
11,002 |
16,519 |
|
|
Prepaid expense and deposits |
5,831 |
6,934 |
|
|
Exploration and evaluation assets |
270,703 |
270,014 |
|
|
Property, plant and equipment |
471,235 |
479,055 |
|
|
Total liabilities |
625,287 |
601,773 |
|
|
|
|
|
|
|
Shareholders’ equity |
141,463 |
175,755 |
|
|
|
|
|
2020 Outlook
Sunshine will continue to carefully monitor developments in crude oil markets and COVID-19 and will adjust its strategies accordingly. Cost control remains a focus of the Company. The Company is also continuing with its joint venture for re-activation of the Muskwa and Godin Area activities as international oil price recovers.
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 currently focus on the West Ells project area. West Ells Phase 1 has a designed production capacity 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