Kingsland Energy Corp. (tsx-v:kle) Announces Unaudited Condensed Consolidated Interim Financial Results for the 1 St Quarter Period Ended February 28, 2017

Source Company Press Release
Company Kingsland Energy Corp.
Tags Corporate: Corporate Results, Overview/Strategy, Country: Canada, Financial - Costs & Metrics: Capital Expenditures
Date April 28, 2017

Kingsland Energy Corp. (the “Corporation” or “KLE”) today announced its unaudited financial results for the first quarter period ended February 28, 2017

During the period ending February 28, 2017 (the “Period”) the Corporation pursued several initiatives to procure long-term sustainability in a depressed commodity market environment. The Corporation has successfully reduced office administration and associated human resource cost as it pursues financing initiatives to reduce debt and fund growth initiatives.

The Corporation is continually working towards the restructuring of its long-term debt obligation to provide balance sheet flexibility and financial capacity to pursue business development opportunities focused towards its wholly owned subsidiary EHR Enhanced Hydrocarbon Recovery Inc. (“EHR”).

EHR is pursuing a variety of business initiatives to leverage its advanced solvent expertise to participate in low cost, heavy oil enhanced recovery programs, deemed to be economic in today commodity price environment. One of the initiatives being pursued is consulting opportunities in connection with the development of EHR technologies and operations; more specifically the joint development and implementation of new technology for heavy oil CHOPS (Cold Heavy Oil Production with Sand) wells

During the 2016 year, the Corporation has held meetings and has communicated to the debenture holders that the Corporation is not able to pay debenture interests that have matured or are in the process of maturing, as the resources required exceed the value of assets that can be realized on. The Corporation has made a proposal to all debenture holders, subject to regulatory approvals, to convert the debenture holders’ interest, including related interest amounts, to shares based on a $0.05 per share amount. The Corporation has received commitments for its conversion plan from the majority of its debenture holders who will be willing to convert. The Corporation will not complete the conversion plan until such time as all the parties have agreed thereto and all necessary approvals have been obtained.

Financial Results

Selected financial information of KLE is summarized below. Financial results for KLE have been prepared in accordance with International Financial Reporting Standards.

Revenues for the Period were $Nil compared to $33,000 for the period ending February 29, 2016. Revenues for the Period are associated with consulting services. Revenue from consulting services may occur from time to time as opportunities arise, but are not an ongoing source of revenues. There are no revenues from oil and gas production for the Period. Revenues from oil and gas will not resume until the Corporation acquires existing production and realizes revenue from the farm in opportunities.

Net loss and comprehensive loss for the Period was $64,474 compared with a loss of $88,215 as at February 29, 2016. The decrease is attributable to reduction in rent, consulting expenses and everyday operating expenses.

Total assets for the period were $938,817 versus $1,974,686 as at February 29, 2016. The net decrease in assets is attributed to the amortization of property, equipment and intangibles, expiration of leases, impairment of intangibles and investments and the collection of accounts receivable.

As at February 28, 2017 current liabilities were $3,283,328 versus $2,281,922 as at February 29, 2016. The increase is attributed to increase in accrued interest and accounts payable during the 2016 year and a number of debentures maturing.

Long term liabilities were $148,900 versus $875,900 as at February 29, 2016. The decrease is a result of debt restructuring and the reclassification of a portion of debt to current liabilities. Long term debt in respect to both years includes and estimate for a decommissioning liability of $44,400.

The Corporation further announces that Mr. Dwain Lingenfelter has tendered his resignation as director of Kingsland. Mr. Lingenfelter served on the board of directors of the Corporation since March 6, 2012. Although his name was nominated in KLE’s management information circular dated April 10, 2017, for election as a proposed director for the ensuing year, Mr. Lingenfelter has declined such nomination due to the Corporation’s inactivity, and if elected as director by majority vote of the shareholders of the Corporation, will not be reappointed as a director. The Corporation is appreciative for Mr. Lingenfelter’s contributions during KLE’s time of production activity and wishes him the very best in his future endeavors.

The information and opinions expressed herein involve known and unknown risks and uncertainties that may cause the Corporation’s actual results or outcomes to be materially different from those anticipated and discussed herein. In assessing forward-looking statements contained herein, readers are urged to read carefully all cautionary statements contained in these financial statements and exhibits, and in those other filings with the Corporations’ Canadian regulatory authorities as found in ‘www.SEDAR.com’. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements or other future events. We are under no duty to update any of our forward looking statements after the date of this annual report, other than as required and governed by law.

Source: EvaluateEnergy® ©2024 EvaluateEnergy Ltd