CanAsia Energy Corp. (CEC: TSXV), on behalf of its wholly owned subsidiary Andora Energy Corporation ("Andora"), is pleased to announce the results of  the December 31, 2024 Contingent Bitumen Resources Report ("Resources Report") which is a National Instrument 51-101 compliant resources evaluation for Andora's oil sands interests at Sawn Lake Alberta, Canada, as prepared by independent qualified reserves evaluator Sproule Associates Limited ("Sproule") in accordance with the Canadian Oil and Gas Evaluation Handbook (COGE Handbook) maintained by the Society of Petroleum Evaluation Engineers (Calgary chapter), as amended from time to time.  The Resources Report represents an update of Andora's June 30, 2024 Contingent Bitumen Resources Report. The evaluation included all of Andora's Oil Sands Leases at Sawn Lake based on exploitation using Steam Assisted Gravity Drainage ("SAGD"). 

Please note that unless otherwise stated, amounts are in Canadian dollars and volumes and financial amounts are net to Andora. 

Highlights of Sawn Lake, Alberta Contingent Resources Report as of December 31, 2024

Resources Report

Sawn Lake SAGD Development

Andora holds interests in 27 sections of heavy oilsands leases in Sawn Lake, within the central Alberta Peace River Oil Sands region.  Andora is focused on developing the bitumen resources at Sawn Lake using SAGD development. 

Contingent resources have been assigned to the Sawn Lake Central and Sawn Lake South blocks. Andora is the operator with a 100% working interest in both blocks.  Sawn Lake Central, with 11 sections of oil sands leases,has been assigned 284 million barrels of unrisked "Best Estimate" bitumen recoverable and Sawn Lake South, with 16 sections of oil sands leases, has been assigned 75 million barrels of unrisked "Best Estimate" bitumen recoverable.

A SAGD demonstration project at the Sawn Lake Central block commenced in 2013 and consisted of one SAGD wellpair drilled to a depth of 650 meters and a horizontal length of 780 meters and a SAGD facility for steam generation, water handling and bitumen treating.  Steam injection commenced in May 2014 and produced bitumen from September 2014 to February 2016.  The demonstration project reached a steady state production level in February 2016 of 620 BOPD with an instantaneous steam-oil ratio ("ISOR") of 2.1.  The demonstration project successfully captured the key data associated with the objectives of the demonstration project and operations were suspended at the end of February 2016.  The demonstration project proved that the SAGD process works in the Bluesky formation at Sawn Lake, established characteristics of ramp up through stabilization of SAGD performance, indicated the productive capability, ISOR, and provided critical information required for well and facility design associated with future commercial development.  Production results to date are not necessarily indicative of long-term performance or of ultimate recovery and the Sawn Lake demonstration project has not yet proven that it is commercially viable.

The Resources Report reflects the development plan for Sawn Lake Central and Sawn Lake South of staged development with five standardized "battery scale" SAGD facilities where growth is primarily funded by cash flow generated by the project.  The SAGD batteries will be capable of producing 5,000 to 6,000 barrels of bitumen per day (BOPD) each and will utilize Andora's proprietary Produced Water Boiler ("PWB") technology which will use water from SAGD production to generate steam and meet water recycle requirements in Alberta.  This strategy is expected to significantly reduce financial, reservoir and operating risk.

The potential first stage of commercial development is at Sawn Lake Central Battery #1 to reactivate the existing SAGD facility with a new 1,600 meter horizontal length SAGD wellpair for restart of bitumen production in 2026.  The estimated capital cost (excluding operating losses until plateau production is reached) is $13.7 million and plateau production is 1,210 BOPD in 2027.  The potential second stage of commercial development starts with the installation of a PWB in 2027 to demonstrate its effectiveness and the restart of the existing wellpair #1.  This is expected to be followed in 2028 and 2029 with the drilling of an additional wellpair and related facilities work largely funded by cash flow. The estimated capital cost is $30.4 million in 2027 to 2029 with plateau production at 2,782 BOPD in 2030. Regulatory approval for the Sawn Lake commercial operation to 3,200 BOPD was received in December 2017.  The facility with additional wellpairs could be expanded in 2030 and 2031 after expected regulatory approval to increase production to 5,293 BOPD. Four additional batteries would be constructed for full field development. The timing of individual batteries is dependent on regulatory approval and after-tax cash flow from existing operations for funding of new investment.  Volume estimates are unrisked "Best Estimate".

It is recognized that stable crude oil prices, and specifically Western Canada Select benchmark prices, will have a significant impact on project economics and financing, and on decisions regarding the timing and extent of future development.

 

 

 

CanAsia is a Calgary, Alberta based oil and gas company with operations in Western Canada.

This press release contains forward-looking information within the meaning of applicable Canadian securities laws.  Forward-looking information is generally identifiable by the terminology used, such as "expect", "believe", "estimate", "should", "could", "will", "anticipate" and "potential" or other similar wording.  Forward-looking information in this press release includes, without limitation, references, express or implied, estimates of contingent resources volumes and the net present value thereof, the expected development plan for Sawn Lake, including the estimated costs thereof, the use of, and expected results from, ICDs and the PWB and forecast production volumes.  By its very nature, the forward-looking information contained in this press release requires CanAsia and its management to make assumptions that may not materialize or that may not be accurate.  With respect to the forward-looking statements contained in this press release, CanAsia has made assumptions regarding, among other things, estimated resources volumes; the Sawn Lake development plan, including the timing and cost thereof and technical feasability; the commercial viability of producing CanAsia's resources; sources and availability of funding; current and future commodity prices and royalty rates and regimes; the timing and outcome of regulatory approvals; availability of skilled labour; timing and amount of capital expenditures; future cash flows; future exchange rates; the impact of competition; general economic and financial conditions; the availability of drilling and other equipment; the effectiveness of technologies, including ICDs and the PWB; future bitumen production; effects of regulation by governmental agencies; future operating costs; and other matters. In addition, the forward-looking information contained in this press release is subject to known and unknown risks and uncertainties and other factors, some of which are beyond the control of CanAsia, which could cause actual results, expectations, achievements or performance to differ materially, including, without limitation, imprecision of resources estimates and estimates of recoverable quantities of oil; inability to access sufficient capital or generate sufficient cash flow to fund the Sawn Lake development plan; adverse outcomes of regulatory proceedings; delays in regulatory proceedings; changes in project schedules; operating and reservoir performance; the effects of weather and climate change; the results of exploration and development drilling and related activities; changes in demand for oil and gas; commodity price volatility; uncertainty of production estimates; impact of the changes in the economy; well performance and marketability of production; transportation and refining availability and costs; exploration and development costs; the recoverability of estimated resources volumes; failure of new technologies, including ICDs and PWB, to achieve expected results; CanAsia's ability to add reserves through development and exploration activities; fluctuations in currency exchange rates; changes in government legislation and regulations, including royalty and tax laws; the results of commercial negotiations; the timing and outcome of applications for government approvals; the factors for development set forth in the Resources Report and other technical and economic factors or revisions.  Although CanAsia believes that the expectations reflected in its forward-looking information are reasonable, it can give no assurances that those expectations will prove to be correct.  CanAsia undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

Neither 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. 

SOURCE CanAsia Energy Corp.

SOURCE: CanAsia Energy Corp.

FOR FURTHER INFORMATION, PLEASE CONTACT: CanAsia Energy Corp., Jeff Chisholm,
President and CEO (located in Bangkok, Thailand), Email: jeff@canasiacorp.com;  or
Marcel Nunes, Vice President Finance and CFO, Email: marcel@canasiacorp.com,
Telephone: (403) 294-1770

COMTEX_463519353/2197/2025-03-11T18:59:00