Canadian Quantum Energy Corporation
NEX BOARD : CQM

Canadian Quantum Energy Corporation

September 30, 2005 13:31 ET

Canadian Quantum Energy Corporation: Changes in Accounting Policies and Restatement of Previously Issued Financial Statements

LONDON, ONTARIO--(CCNMatthews - Sept. 30, 2005) - Douglas J. Brett, President of Canadian Quantum Energy Corporation (NEX BOARD:CQM) (the "Company"), announces that the Company has re-filed its July 31, 2005; October 31, 2004 and January 31, 2005 quarterly interim financial statements and management discussion and analysis in response to deficiencies noted by the Ontario Securities Commission as a result of a full review it has undertaken of the Company's continuous disclosure record.

A summary of the restatements included in the re-filed financial statements follows:

(a) Asset retirement obligations

The Company has adopted new Canadian accounting standards for asset retirement obligations. The cumulative effect of adopting this new policy has been recorded retroactively with restatement of prior periods. The opening deficit for the years ended April 30, 2005 has been increased by $13,010 and an asset retirement obligation of $97,309 has been recorded. There was no impact on cash flow as a result of this restatement.

(b) Restated depletion expense

The Company applied its depletion policy to its undepleted Oil and Gas Properties balances including estimated Asset Retirement Obligation costs and determined depletion and asset retirement expenses for the year ended April 30, 2005 to be $50,033 or $0.01 per share. The Company therefore restated its 2005 quarterly interim financial statements to reflect this additional expense. There was no impact on cash flow as a result of this restatement.

(c) Expanded disclosure of Full Cost Oil and Gas Accounting

Note disclosure has been expanded to include certain technical details employed in the Company's accounting for depletion expense and ceiling test calculations.

(d) Expanded disclosure of related party balances

The Company has expanded its disclosure of related party transactions and balances in its Management Discussion and Analysis accompanying the restated 2005 quarterly financial statements.

(e) Reclassification of account payable with repayment terms greater than one year

The Company has reclassified a portion of an accounts payable to a long-term liability category to better reflect the term repayment nature of the trade liability in monthly installments.

All restated quarterly financials statements and management discussions and analysis are available for viewing at www.sedar.com or alternatively by contacting the Company directly.

CANADIAN QUANTUM ENERGY CORPORATION

Douglas J. Brett, President


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Canadian Quantum Energy Corporation
    Douglas J. Brett
    President
    (519) 657-9303
    (519) 657-3633 (FAX)