Canada Energy Partners Inc. Due Diligence Report

Symbol: CE.H – on TSXV

Price: $0.17

Common Shares: 15,157,784 

Market Cap: $2.6 Million

Insider Holdings: 460,091 – From post rollback as seen on the 2020 information circular 

Company story: Canada Energy Partners was basically a shell company until a couple weeks ago. They wrapped up operations in British Columbia and did a 25:1 rollback with three separate financings over the past year. All financings were done at $0.125 and have a full warrant attached at $0.16. A total amount of $1,442,750 CAD has been raised in that time frame.

On May 11th 2021, Canada Energy Partners announced a confidentiality agreement in regards to a new oil and gas project that would be investigated by an advisory group named “Hades Energy Holdings E&P”. Then on September 22nd 2021, there was a news release pertaining to this project, which we now know is in Gabon, a small but established oil producing country. Gabon only has a population of 2.3 million people, but it’s national oil production rates hover around 200,000 barrels per day: https://www.eia.gov/international/analysis/country/GAB . Canada Energy Partners signed an LOI which would allow them to bring the Konzi oil field back into production. This was closed due to pipeline constraints and that issue has since been resolved. The company is now working with the government of Gabon on a profit-sharing agreement which would allow them to go in and upgrade equipment, along with workover some wells. 

Most recent financial results (ending July 31, 2021)

ASSETS

Cash: $557,465

Prepaid & Deposits: $20,381

Reclamation Deposit: $87,859 

Total Assets: $665,705

LIABILITIES

Accounts Payable: $153,239

Decommissioning Liability: $62,299

Total Liabilities: $215,538

Most recent news releases:

Canada Energy appoints Dzisiak as director

2021-09-28 07:08 MT - News Release

Mr. Grant Hall reports

CANADA ENERGY PARTNERS ANNOUNCES CHANGES TO THE BOARD OF DIRECTORS

Canada Energy Partners Inc. has appointed Robert Dzisiak to the board of directors of Canada Energy Partners. Mr. Dzisiak is an experienced executive who has successfully grown small start-ups and managed large organizations. He has been the chief executive officer of several IIROC member firms and founded CFG Futures. Mr. Dzisiak managed 120 retail brokers and the FX division at Refco Canada as well as RJO'Brien & Associates. He is a former chairman of the Winnipeg Commodity Exchange and served as a director of the Exchange and Clearing House for over 10 years. Mr. Dzisiak has significant public market experience and has served in the roles of CEO/chairman/director of multiple publicly listed companies in Canada. Mr. Dzisiak is currently a director of HapbeeTechnologies, chief executive officer of King Global Ventures and is the past chairman of Next Green Wave. Mr. Dzisiak has raised a very significant amount of capital from a large network of high-net-worth individuals and institutions that he continues to work with.

Grant Hall, president of Canada Energy Partners, commented: "I have known Rob Dzisiak for over 20 years and worked with him on several projects, both public and private. We are extremely fortunate to add Rob to our team as we continue to build Canada Energy Partners into a successful international oil and gas production and exploration company."

Canada Energy Partners also wishes to announce the resignation of Win Purifoy from the board of directors of the company. Mr. Purifoy has served the company and shareholders of Canada Energy Partners with distinction and integrity for many years. Canada Energy is a better company because Mr. Purifoy was involved. The company thanks him for the work he has done and wish him all the best in his present and future endeavours. He will be missed.

Canada Energy to develop Konzi oil field in Gabon

2021-09-22 11:36 ET - News Release

Mr. Grant Hall reports

CANADA ENERGY PARTNERS SIGNS DEVELOPMENT LOI IN GABON

Canada Energy Partners Inc. has executed a non-binding letter of intent with the government of Gabon, West Africa. Both parties have entered negotiations to conclude a binding profit-sharing agreement between Canada Energy and the government for the redevelopment of the Konzi oil field located nine kilometres off the coast of Gabon, close to the oil terminal and loading facilities at Port Gentil, Gabon.

The Konzi oil project is a former producing asset of TotalEnergies in Gabon which was taken offline due to pipeline constraints imposed by the Gabon Oil Company's Mboumba field located on shore, near the Konzi oil field. The pipeline capacity restraints have been resolved and capacity has been allocated to production from the region. During its production life, Konzi produced more than 18 million barrels of light (API 29) oil from 14 wells on two shallow water platforms. Konzi's production was 600 barrels of oil per day when operations were halted.

Canada Energy plans, upon a successful negotiation of a profit-sharing agreement with the government of Gabon, to upgrade the facilities and production equipment, rework three wells, and get meaningful production on line as soon as possible. Based on the company's initial due diligence, reserves and recovery of identified economic resources can be greatly enhanced with the use of modern oil and gas production techniques and equipment.

Canada Energy has commissioned McDaniel & Associates from Calgary, Alta., Canada, to produce a National Instrument 53-101 reserve report containing a development plan and an estimate of the economics for the project.