Canadian Phoenix Resources Corp.
TSX VENTURE : CXP

Canadian Phoenix Resources Corp.

November 23, 2011 19:06 ET

Canadian Phoenix Releases Third Quarter Results

CALGARY, ALBERTA--(Marketwire - Nov. 23, 2011) - CANADIAN PHOENIX RESOURCES CORP. (TSX VENTURE:CXP) ("Canadian Phoenix" or the "Corporation") announces its results for the three and nine months ended September 30, 2011.

2011 THIRD QUARTER HIGHLIGHTS

  • The Corporation held $79,657,798 in cash and cash equivalents and maintained a working capital surplus of $79,522,562 as at September 30, 2011.
  • The Corporation's net asset value was $1.37 per common share issued and outstanding as at September 30, 2011.
  • The Corporation received $200,000 on the disposition of the majority of its remaining oil and gas assets.
  • All warrants to purchase the Corporation's common shares expired.
  • The Corporation's net income and comprehensive income was $19,085 for the three months ended September 30, 2011.
  • Subsequent to September 30, 2011, the Corporation repurchased for cancellation 186,300 of its common shares for a total cost of $233,127, by way of a Normal Course Issuer Bid.

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 significant producing assets in the second quarter of 2010 and minor producing assets in the third quarter of 2011, the Corporation's oil and gas production has been negligible during 2011. Interest income on the cash received through these disposals and a recovery on certain operating expenses resulted in net income and comprehensive income of $19,085 for the three months ended September 30, 2011.

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 nine months ended September 30, 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 September 30
For the nine months
ended September 30
2011 2010 2011 2010
Net income (loss) and comprehensive income (loss) 19 (1,970) (468) 19,745
Net income (loss) and comprehensive income (loss) attributed to shareholders of the Corporation 19 (1,970) (468) 18,426
Earnings (loss) per share - basic and diluted ($) 0.00 (0.04) (0.01) 0.40
Oil and natural gas sales 9 86 65 7,364
Total oil and natural gas production (boe) 17 2,458 1,785 140,249
Interest income 237 124 781 131
Impairment of exploration and evaluation properties and assets held for sale - (10) (144) (88)
Gain on disposal of exploration and evaluation properties - - - 4,980
Gains on disposal of subsidiary and equity investment - - - 26,733
Net loss - equity investment - - - (1,053)
Cash flows (used in) from operations (411) (1,397) (1,240) (5,957)
Cash flows from investing activities 436 115 565 83,450
Cash flows from (used in) financing activities - - 5,314 (12,301)
September 30
2011
December 31
2010
Cash and cash equivalents 79,658 75,019
Working capital surplus 79,523 74,450
Total assets 80,222 76,349
Common shares outstanding1 58,468,718 54,039,240
Fully diluted common shares outstanding1 60,953,518 76,906,008
Footnote:
1 As at September 30, 2011, fully diluted common shares outstanding includes 2,484,800 stock options outstanding. Subsequently, 186,300 common shares have been repurchased by way of a Normal Course Issuer Bid, reducing the number of common shares outstanding to 58,282,418 and the number of fully diluted common shares outstanding to 60,767,218.

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