Canadian Phoenix Resources Corp.
TSX VENTURE : CXP

Canadian Phoenix Resources Corp.

June 29, 2011 19:21 ET

Canadian Phoenix Releases First Quarter Results

CALGARY, ALBERTA--(Marketwire - June 29, 2011) - CANADIAN PHOENIX RESOURCES CORP. (TSX VENTURE:CXP) ("Canadian Phoenix" or the "Corporation") announces its results for the three months ended March 31, 2011.

2011 FIRST QUARTER HIGHLIGHTS

  • The Corporation issued 4,429,478 common shares by way of exercise of warrants for total proceeds of $5,536,848.
  • As at March 31, 2011, the Corporation held $79,831,032 in cash and cash equivalents and maintained a working capital surplus of $79,798,572.
  • The Corporation's net loss and comprehensive loss was $185,478 on oil and gas natural sales of $36,991.
  • The Corporation's net asset value was $1.37 per common share issued and outstanding as at March 31, 2011.

The Corporation, through a Special Committee of the Board of directors, continues to seek investment opportunities in the oil and gas sector. Neither the exact timing, nor the form of an appropriate transaction is known, but potential opportunities continue to be assessed.

Financial results and select financial information

Following the dispositions of its major producing assets in 2010, production from the Corporation's remaining assets was negligible during the first quarter of 2011. The Corporation incurred a net loss and comprehensive loss of $185,478 during the quarter, reflecting operating and administrative costs for the quarter that were partially off-set by interest income of $271,534.

Subsequent to March 31, 2011, the Corporation negotiated terms to sell the remainder of its existing oil and gas assets, which would also absolve Canadian Phoenix of its remaining asset retirement obligations, but definitive agreements have not been finalized.

With a strong financial position, the Corporation is seeking to strategically re-invest in the oil and gas sector. Until such a transaction occurs, management's focus will be to preserve capital, and earnings are expected to be flat.

Selected financial results are as follows and the Corporation's unaudited condensed consolidated interim financial statements and related MD&A for the three months ended March 31, 2011, as well as its 2010 audited annual financial statements can be found at www.sedar.com and on the Corporation's website at www.canadian-phoenix.com.

Selected Financial and Operational Information
($ thousands, except as indicated)
For the three months
ended March 31
2011 2010
Net (loss) income and comprehensive (loss) income (185) 1,580
Net loss and comprehensive loss attributed to shareholders of the Corporation (185) (1,588)
Loss per share - basic and diluted ($) 0.00 (0.03)
Oil and natural gas sales 37 5,150
Total oil and natural gas production (boe) 1,243 89,569
Average realized price of oil ($/boe) 79.21 63.75
Average realized price of natural gas ($/mcf) 3.97 5.28
Netbacks (185) 2,055
Interest income 272 -
Impairment of exploration and evaluation properties (4) (31)
Gain on disposal of exploration and evaluation properties - 4,980
Net income - equity investment - 489
Funds (used in) from operations (473) 319
Capital expenditures 4 482
March 31
2011
December 31
2010
Cash and cash equivalents 79,831 75,019
Working capital surplus (deficiency) 79,799 74,450
Total assets 81,459 76,349
Common shares outstanding 58,468,718 54,039,240
Fully diluted common shares outstanding1 72,224,966 76,906,008
Footnote:
1 As at March 31, 2011, fully diluted common shares outstanding includes 2,484,800 stock options and 11,271,448 warrants outstanding. The warrants outstanding have an exercise price of $2.50 and expire in September 2011.

About Canadian Phoenix

Canadian Phoenix Resources Corp. is a publicly-traded junior oil and gas exploration, development and production company with operations in Western Canada. Canadian Phoenix's shares trade on the TSX Venture Exchange under the symbol "CXP".

FORWARD-LOOKING STATEMENTS: This news release may contain forward-looking information. All statements and information other than statements of historical fact are forward-looking information. In some cases, forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", or the negative of these terms or other comparable terminology. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the control of Canadian Phoenix, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits Canadian Phoenix will derive there from. The forward-looking statements and information contained in this news release are made as of the date hereof and Canadian Phoenix undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Canadian Phoenix Resources Corp.
    Michael Atkinson
    President & CEO
    (604) 689-1428

    Canadian Phoenix Resources Corp.
    John Downes
    Interim Chief Financial Officer
    (604) 488-5415
    www.canadian-phoenix.com