Cancoil Integrated Services Inc. Releases Its Audited Financial Statements for the Year Ended May 31, 2000.Business Editors CALGARY Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial , Alberta--(BUSINESS WIRE)--Sept. 5, 2000 Mr. Mark T. Andreychuk Andreychuk is a Ukrainian surname meaning Andrew's son. People
, the President of Cancoil Integrated Services In computer networking, IntServ or integrated services is an architecture that specifies the elements to guarantee quality of service (QoS) on networks. IntServ can for example be used to allow video and sound to reach the receiver without interruption. Inc. (CDNX CDNX See Canadian Venture Exchange (CDNX). :CAN.)(www.cancoil.com), is pleased to report audited financial results for the year ended May 31, 2000. These consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: results include those of the company and its 75% owned subsidiary, Technicoil Integrated Services Inc. Financial Review Cancoil operated with one rig until May 2000 when Rigs 2 and 3 were delivered on May 9th and 25th and immediately went into successful commercial operation. Despite these rigs having little time to impact revenues, Cancoil was able to generate earnings of $295,787 and cash flow of $499,474 for the year. At year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , five additional rigs were under construction. Once all the rigs are delivered, the company will have eight rigs in operation. Cancoil is currently assessing the market outlook with a view to further rig construction. The company's balance sheet at year-end reflects the significant capital expansion and associated financing completed during the year. The company ended the year with working capital of $1.7 million, long term debt of $1.0 million, a $1.5 million convertible debenture Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. and equity of $7.1 million. Capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) were $5.7 million at year-end and will increase once the construction of the additional 5 rigs is completed. Cancoil did not pay income tax in FY2000 and has non-capital losses carried forward of $1.3 million which are available to reduce taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. for the current and future years. Tax liability for 2001 will depend on the profitability of the company's operations and the magnitude magnitude, in astronomy, measure of the brightness of a star or other celestial object. The stars cataloged by Ptolemy (2d cent. A.D.), all visible with the unaided eye, were ranked on a brightness scale such that the brightest stars were of 1st magnitude and the of the capital expenditure program. Operational Review In FY2000 Cancoil expanded its coiled tubing Coiled tubing refers to metal piping, normally 1" to 2" in diameter, used for interventions in oil and gas wells, which comes spooled on a large drum. The main benefits over wireline are the ability to pump chemicals through the coil and the ability to push it into hole rather than rig fleet from one unit at May 31, 1999 to three units in commercial operations and had a further five units under construction by May 31, 2000. The second and third units did not commence operations until the last month of the fiscal year. Since year-end, Rig 4 has also been delivered and is operating successfully. All units have been engaged primarily on coil fracturing contracts, but also included underbalanced vertical extensions, conventional work and underbalanced directional drilling Directional drilling (sometimes known as slant drilling outside the oil industry) is the science of drilling non-vertical wells. Directional drilling can be broken down into three main groups: Oilfield Directional Drilling, Utility Installation Directional Drilling (commonly . Cancoil's patented technology continues to prove its efficiency and cost effectiveness in the field. Design changes to Rigs 2 and 3 have brought about improvements in efficiency, in that instead of using 3 operators, Cancoil operates the new rigs effectively and safely with two operators during fracturing with coil operations. The ability to mobilize mo·bi·lize v. 1. To make mobile or capable of movement. 2. To restore the power of motion to a joint. 3. To release into the body, as glycogen from the liver. in minutes, while managing all the coiled tubing procedures with two people, has greatly enhanced operational economics. In March 2000, Cancoil entered the U.S. marketplace with the formation of a U.S. subsidiary, Technicoil Integrated Services, Inc. based in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the under the direction of Mr. E.A. Andy Rike Jr., President and Chief Executive Officer of Technicoil. Mr. Rike is a well regarded coiled tubing expert. Before joining Technicoil he was employed in a senior position with an international oilfield service company. Technicoil is expected to commence active U.S. commercial rig operations as early as September September: see month. 2000. Subsequent to year-end, Cancoil exchanged Mr. Rike's 25% ownership in Technicoil for Cancoil shares which created greater efficiency in the two companies. Pending final exchange approval, 850,000 Cancoil shares will be issued to Mr. Rike and Technicoil will become a wholly-owned subsidiary of Cancoil. Strong energy prices continue to support busy drilling activity in the energy industry. We believe we are in a position to take full advantage of the expanding market for coiled tubing drilling, coil fracing and other services. Current demand is such that the company expects to further expand its fleet over the coming year.
SUMMARY OF YEAR ENDED MAY 31, 2000
CONSOLIDATED FINANCIAL POSITION AND OPERATION
CONSOLIDATED BALANCE SHEET
Assets
Current $ 2,732,569
Due from Shareholders 60,000
Deposits on capital assets under construction 2,224,906
Capital Assets 5,757,819
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$10,775,294
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Liabilities and Shareholders' Equity
Liabilities
Current $ 1,021,828
Long-term Debt 1,042,971
Convertible debenture 1,500,000
Non controlling interest 76,187
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3,640,986
Shareholder's equity
Capital Stock 7,189,998
Deficit (55,690)
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$10,775,294
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CONSOLIDATED STATEMENT OF OPERATIONS AND DEFICIT
Coiled tubing drilling and service revenue $ 2,345,378
Expenses
Operating 1,196,824
General and Administrative 509,625
Amortization 215,447
Interest on long-term debt 175,396
Interest income (35,941)
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2,061,351
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Net income before non-controlling interest 284,027
Non-controlling interest in net loss of
subsidiary 11,760
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Net income for the year 295,787
Deficit, beginning of year (351,477)
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Deficit, end of year $ (55,690)
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Net earnings per common share
Basic $ 0.02
Fully diluted $ 0.02
CONSOLIDATED STATEMENT OF CASH FLOWS
Cash provided by (used in):
Operating Activities:
Net income (loss) $ 295,787
Add non-cash items:
Amortization 215,447
Non-controlling interest (11,760)
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499,474
Change in non-cash working capital (443,360)
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56,114
Financing Activities:
Common shares and warrants issued 5,697,113
Contribution by non-controlling shareholder
of a subsidiary 87,947
Increase (decrease) in long-term debt (331,184)
Convertible debenture 1,500,000
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6,953,876
Investing Activities:
Acquisition of capital assets (3,088,545)
Advances to shareholder (60,000)
Deposits on capital assets under construction (2,224,906)
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(5,373,451)
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Increase in cash and cash equivalents 1,636,539
Cash and cash equivalents, beginning of year 56,560
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Cash and cash equivalents, end of year $ 1,693,099
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Information about Cancoil's technology can be obtained from our website at www.cancoil.com. The Canadian Venture Exchange The Canadian Venture Exchange (CDNX) is now a defunct stock exchange having been acquired by the TSX Group in 2001 and renamed the TSX Venture Exchange. History of the Canadian Venture Exchange (CDNX) has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
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