CanAsia Energy Corp. completes acquisition of oil sands assets in Alberta

In a significant development for Alberta’s oil sands sector, CanAsia Energy Corp. (TSXV: CEC), through its subsidiary Andora Energy Corporation, has successfully completed the acquisition of key assets from Northern Alberta Oil Ltd. (NAOL) and Deep Well Oil & Gas (Alberta) Ltd. (Deep Well). The deal, valued at $2 million, includes the assumption of various obligations and a credit bid component of approximately $0.7 million.

Details of the Acquisition

The acquired assets consist of a 25% working interest in 11 sections of heavy oil sands leases located in Sawn Lake, situated within the central Alberta Peace River Oil Sands region. This strategic purchase, facilitated by Ernst & Young Inc., as receiver and manager of the Debtors, was approved by the Court of King’s Bench of Alberta on May 14, 2024, following Andora’s selection as the successful bidder in late April.

CanAsia Energy Corp. finalizes a $2 million acquisition of oil sands assets in Alberta, boosting its stake and operational control in the Sawn Lake project.

Impact and Expansion of Andora’s Operations

Post-acquisition, Andora’s working interest in the Sawn Lake Central block has increased from 75% to a full 100%, establishing Andora as the sole operator with a complete working interest across four heavy oil sands leases encompassing 27 sections at Sawn Lake. This expansion marks a significant consolidation of Andora’s operational footprint in one of Alberta’s key oil sands regions.

The acquisition by CanAsia and the subsequent expansion of Andora’s working interest in Sawn Lake represent a critical advancement in the operational capabilities and strategic positioning of CanAsia within the Western Canadian energy market. This move not only strengthens their asset base but also enhances their influence in the competitive oil sands sector, offering potential for increased production and revenue in the future.