CALGARY, AB, Aug. 14, 2024 /CNW/ - CanAsia Energy Corp. (TSXV:CEC), on behalf of its wholly owned subsidiary Andora Energy Corporation ("Andora"), is pleased to announce the results of the June 30, 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 evaluated by independent qualified reserves evaluator Sproule Associates Limited ("Sproule"). The Resources Report represents an update of Andora's December 31, 2023 Contingent Bitumen Resources Report to reflect, among other things, the previously announced increase of Andora's working interest at the Sawn Lake Central block from 75% to 100%. 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 June 30, 2024 Following a successful auction bid, in May 2024, Andora acquired certain assets (the "Assets") from two entities which were placed under receivership (the "Debtors") for a purchase price equal to $2.0 million (which includes the assumption of various obligations). The net consideration paid was approximately $1.3 million after offset of amounts due from the Debtors. The Assets include the Debtors' 25% working interest in Sawn Lake, within the central Alberta Peace River Oil Sands region. Following the acquisition, Andora's working interest in the Sawn Lake Central block increased from 75% to 100%. The Resource Report reflects Andora's 100% working interest at Sawn Lake Central and Sawn Lake South. The unrisked "Best Estimate" contingent resources for Andora's interests as at June 30, 2024 are 358 million barrels of bitumen recoverable with net present value discounted at 10% and 15% of $850 million and $356 million on an after-tax basis, respectively. The Resources Report assigned an 85% chance of development for Sawn Lake, and the risked "Best Estimate" contingent resources for Andora as at June 30, 2024 are 304 million barrels of bitumen recoverable. The risked "Best Estimate" net present value, discounted at 10% and 15%, for Andora's interests as at June 30, 2024 is $725 million and $304 million on an after-tax basis, respectively. The Resource Report at June 30, 2024 reflects the use of a 1,600 meter horizontal SAGD wellpair design with industry standard Inflow Control Devices ("ICDs") to reduce the number of required wellpairs to develop the contingent resources. The number of new wellpairs required to develop the contingent resources is 182. The Resources Report forecasts bitumen production from 2026 to 2097, with maximum unrisked "Best Estimate" production net to Andora of 26,658 BOPD in 2040. The unrisked "Best Estimate" evaluation indicates that the cumulative financing requirement (being cumulative cash flow of operating income less capital expenditures) to the end of 2026 is $11.3 million, and further development is to be funded by cash flow. Resources Report The Resources Report evaluated Andora's interests at the Sawn Lake Alberta oil sands project. Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by the application of development projects, but which are not currently considered to be commercially recoverable due to one or more contingencies. The contingent resources volumes estimated in the Resources Report are considered contingent until such time as there are additional delineation wells confirming reservoir quality and continuity, refinement of the commercial development plan, regulatory approval for full field development, corporate commitment to move forward and financing for commercial development. Contingent resources are further classified as "High", "Best" and "Low" in accordance with the level of certainty. Sproule classifies the project evaluation status of the contingent resource volumes to be at the Development Studies level. The contingent resource volumes are classified as Development Pending with respect to project maturity. Sproule evaluated Andora's development plan for the contingent resources to be Economically Viable in the aggregate, although there may be individual locations within the project which may be uneconomic. Contingent resource volumes in the Resources Report have been assigned an 85% chance of development by Sproule. This chance of development risk factor is an aggregation of risk factors attributable to the identified contingencies. There is uncertainty that it will be commercially viable to produce any portion of the reported contingent resources volumes. The Resources Report identified key positive and negative factors for development of the Bluesky formation in the Sawn Lake area. Key positive factors include: the abundance of well data available from penetrations on and surrounding Andora's lands (petrophysical, geophysical and production history); the presence of successful analog SAGD projects; and the successful pilot project at the 16-30-91-12W5M location. Key negative factors include: access to the funding required to develop the resource base; sensitivity to low commodity pricing which will impact the economics of development; environmental and regulatory approval for approval of bitumen development, pipelines and other infrastructure; higher Alberta or Federal Carbon tax, income tax or royalties; and market egress. The Resources Report represents an update of a December 31, 2023 Contingent Resources Report which was also prepared by Sproule. The Resources Report has been updated for: June 30, 2024 price forecasts for crude oil, bitumen, natural gas and exchange rates with inflation of 0% in 2025. An increase of Andora's working interest at Sawn Lake Central from 75% to 100%. Adjustment of the development stages for potential commencement of commercial production in 2026. Updates for Andora tax pools and non-capital loss carry-forwards of $65.4 million and the Alberta Oil Sands Royalties Pre-payout Cumulative Costs of $51.7 million for the Sawn Lake Project.Changes to income tax rates, carbon tax legislation and other factors. 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 74 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 ...