ANNOUNCEMENT OF RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2021
CALGARY/HONG KONG – Sunshine Oilsands Ltd. (the“Corporation” or “Sunshine”) (HKEX: 2012) today announced its financial results for the third quarter ended September 30, 2021. The Corporation’s condensed consolidated interim financial statements, notes to the 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 months ended September 30, 2021, the Corporation’s average bitumen production was 0 bbls/day. In the third quarter of 2021, the average Dilbit sales volume was 0 bbls/day. There were no bitumen production and sales in 3Q21 due to temporary suspension of production. On September 28, 2021 (Calgary time), the Corporation and the Forbearing Holder entered into another interest waiver agreement (the “Interest Waiver Agreement”) pursuant to which the Forbearing Holder agree to unconditionally and irrevocably waive the interest accrued between January 1, 2021 to December 31, 2021 at 10.0% per annum on the outstanding amounts (principal and interests) under the Forbearance Reinstatement and Amending Agreement (“FRAA”) dated April 24, 2020 (the “Waiver of Interest”) which amounted to US$31.5 million. As at September 30, 2021, the nine months’ interest waiver CAD$29.6 million was recognized as other income. Save as the Waiver of Interest, all other terms and conditions as stipulated in the FRAA remain unchanged.
Sunshine’s MAJOR FINANCING Activities during 3Q21
During the three months ended September 30, 2021, the Corporation issued no new common shares.
On August 31, 2021 (Calgary time), Sunshine entered into a Royalty Agreement (together with its ancillary documents, the “Royalty Agreement”) with Burgess Energy Holdings, L.L.C. (“BEH”), pursuant to which, the Corporation has granted to BEH a royalty interest in the bitumen within, upon, under or produced from the royalty lands owned by the Corporation and/or its affiliates, free and clear of any and all encumbrances for an aggregate consideration of CAD$20,000,000, subject to the terms and conditions stipulated therein. The arrangement under the Royalty Agreement is perpetual.
Summary of Financial Figures
For 3Q21, net Dilbit sales decreased to $0 from $0.3 million for the same period of 2020 mainly due to temporary suspension of production in March 31, 2020. For 3Q 2021, net profit and comprehensive income attributable to equity holders of the Group is approximately CAD 27.5 million compared to a loss attributable to equity holders of approximately CAD 12.0 million in 3Q20.
As at September 30, 2021 and December 31, 2020, the Corporation notes the following selected balance sheet figures.
|
(Canadian $000s) |
|
September 30, 2021 |
|
December 31, 2020 |
|
Cash |
|
421 |
|
838 |
|
Trade and other receivables |
|
7,745 |
|
1,636 |
|
Exploration and evaluation assets |
|
256,047 |
|
256,195 |
|
Property, plant and equipment |
|
480,370 |
|
481,825 |
|
Total liabilities |
|
586,722 |
|
596,240 |
|
Shareholders’ equity |
$ |
176,125 |
|
165,420 |
2021 Outlook
Sunshine will continue to focus on cost controls and carefully monitor developments in crude oil markets as well as the development of COVID-19 pandemic in North America. As at the date hereof, the Corporation’s production resumption is on track. For details, please refer to the Corporation’s announcement dated September 6, 2021. The Corporation 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 May 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 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