Canadian Phoenix Resources Corp.

Canadian Phoenix Resources Corp.

August 24, 2011 20:07 ET

Canadian Phoenix Releases Second Quarter Results

CALGARY, ALBERTA--(Marketwire - Aug. 24, 2011) - CANADIAN PHOENIX RESOURCES CORP. (TSX VENTURE:CXP) ("Canadian Phoenix" or the "Corporation") announces its results for the three and six months ended June 30, 2011.


  • The Corporation held $79,622,243 in cash and cash equivalents and maintained a working capital surplus of $79,497,483 as at June 30, 2011.
  • The Corporation's net asset value was $1.37 per common share issued and outstanding as at June 30, 2011.
  • The Corporation's net loss and comprehensive loss was $301,786 on oil and gas natural sales of $18,419 for the three months ended June 30, 2011.
  • Subsequent to June 30, 2011, the Corporation sold the majority of its remaining oil and gas assets for proceeds of $200,000.

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 the second quarter of 2010, production from the Corporation's remaining assets was negligible during the first and second quarters of 2011. The Corporation incurred a net loss and comprehensive loss of $301,876 and for the three months ended June 30, 2011, reflecting operating and administrative costs that were partially off-set by interest income of $273,074.

Subsequent to June 30, 2011, the Corporation sold the majority of its remaining oil and gas assets for $200,000, with the sale being effective June 1, 2011. Following the sale of these assets, the Corporation has few legacy oil and gas properties. It is anticipated that in the immediate future, interest income will be sufficient to cover the Corporation's operating and administrative expenses and that earnings and cash flow will be flat or slightly positive. This preserves the strength of the Corporation's financial position from which it can make strategic investments in the future.

Selected financial results are as follows and the Corporation's unaudited condensed consolidated interim financial statements and related MD&A for the three and six months ended June 30, 2011, as well as its 2010 audited annual financial statements can be found at and on the Corporation's website at

Selected Financial and Operational Information
($ thousands, except as indicated)
For the three months
ended June 30
For the six months
ended June 30
2011 2010 2011 2010
Net (loss) income and comprehensive (loss) income (302 ) 20,136 (487 ) 21,716
Net loss and comprehensive loss attributed to shareholders of the Corporation (302 ) 21,985 (487 ) 20,397
Loss per share - basic and diluted ($) (0.01 ) 0.48 (0.01 ) 0.44
Oil and natural gas sales 18 2,127 55 7,277
Total oil and natural gas production (boe) 512 48,222 1,768 137,791
Netbacks (64 ) 776 (250 ) 2,831
Interest income 273 7 545 7
Impairment of exploration and evaluation properties and assets held for sale (140 ) (46 ) (144 ) (77 )
Gain on disposal of exploration and evaluation properties - 4,980 - 4,980
Gains on disposal of subsidiary and equity investment - 26,733 - 26,733
Net loss - equity investment - (1,543 ) - (1,053 )
Funds (used in) from operations (366 ) (4,879 ) (829 ) (4,560 )
Capital expenditures (75 ) (85 ) (79 ) (566 )
June 30
December 31
Cash and cash equivalents 79,622 75,019
Working capital surplus (deficiency) 79,497 74,450
Total assets 81,116 76,349
Common shares outstanding 58,468,718 54,039,240
Fully diluted common shares outstanding1 72,224,966 76,906,008
1 As at June 30, 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