| ||Wed Apr 25, 2012|
Canadian Phoenix Releases Fourth Quarter and Annual Results
| ||CANADIAN PHOENIX RESOURCES CORP. ("Canadian Phoenix" or the "Corporation"), a junior oil and gas exploration, development and production company seeking to invest its cash holdings of over $79 million, announces the results for the final quarter of its fiscal year ended December 31, 2011.|
2011 FOURTH QUARTER AND ANNUAL HIGHLIGHTS
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.
- The Corporation held $79.4 million in cash and cash equivalents and maintained a working capital surplus of $79.2 million as at December 31, 2011.
- The Corporation's cash and cash equivalents per common share and net asset value per common share were $1.37 as at December 31, 2011.
- During the year ended December 31, 2011, the Corporation repurchased for cancellation 500,300 of its common shares at a volume-weighted average price of $1.22 per share by way of a Normal Course Issuer Bid. Since December 31, 2011, an additional 104,200 common shares at a volume-weighted average price of $1.19.
- The Corporation earned $258 thousand in interest income in the fourth quarter of 2011 and over $1.0 million for the full year.
- Net and comprehensive income was $7 thousand - or $nil per share - for the fourth quarter of 2011, and a net and comprehensive loss of $461 thousand - or $0.01 per share - was incurred for the full year.
- As at December 31, 2011, the Corporation has $63.1 million in capital and non-capital loss carry-forwards and other income tax pools for which no deferred income tax asset has been recognized.
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 second 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 $7 thousand for the three months ended December 31, 2011. On a full-year basis, net loss and comprehensive loss of $461 thousand was incurred in 2011 as a result of operating costs incurred on certain oil and gas assets prior to their disposal in the second quarter of the year.
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.
The Corporation's audited consolidated financial statements and related MD&A for the three and year ended December 31, 2011 can be found at www.sedar.com and on the Corporation's website at www.canadian-phoenix.com.
About Canadian Phoenix
Canadian Phoenix Resources Corp. is a publicly-traded junior oil and gas exploration, development and production company seeking investment opportunities in Western Canada. Canadian Phoenix's shares trade on the TSX Venture Exchange under the symbol "CXP".
For further information please contact:
|Michael Atkinson||John Downes|
|President & CEO||Interim Chief Financial Officer|
|Phone: (604) 689-1428||Phone: (604) 488-5415|
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.
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