Energy Co. Forms High-Value Alberta Oil Project Partnership with Korea

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

On May 6, 2026, CanAsia Energy Corp. (CEC:TSX.V) announced that it has entered into a Cooperative Research and Development Agreement with the Korea Institute of Geoscience and Mineral Resources (KIGAM) in regard to the company's pilot oil project in Andora's Sawn Lake, Alberta. Both CanAsia and its wholly-owned subsidiary, Andora Energy Corporation, will partake in the agreement.

Andora has a 100% interest in and operates four oil sands leases with 27 gross sections at Sawn Lake, with a risked Best Estimate contingent bitumen resource of 299 million barrels recoverable. The press release said: "Andora commenced a steam-assisted gravity drainage demonstration project at Sawn Lake in 2013, consisting of one SAGD well pair and a SAGD facility for steam generation, water handling, and bitumen treating.  Steam injection commenced at the demonstration project in May 2014 and produced bitumen from September 2014 to February 2016.  During this time, the demonstration project successfully achieved its objectives by proving that bitumen production from the Blue Sky Formation sandstone reservoir could be achieved at commercial rates and steam oil ratios."

Key terms of the agreement include:

• KIGAM will commit CA$26 million to the installation of three SAGD modules (a produced Water boiler ("PWB") and a partial upgrader and solvent steam flood (the "KIGAM Modules")) and associated operating costs for the recommissioning of the existing plant site at Sawn Lake and start-up of existing well pair #1 ("WP1").
• KIGAM will, at its own cost, which is excluded from the CA$26 million commitment above, fabricate and transport these three SAGD modules to the Sawn Lake site.  Upon successful delivery of the PWB, CanAsia will assign 50% ownership of its PWB patent to KIGAM, and both parties will share 50% of the royalties collected from any future projects utilizing the PWB technology
• Andora will be the Project operator.
• Project term of 3 years, with an optional 1-year extension if both parties mutually agree.
• CanAsia's costs during the Project are anticipated to be minimal.
• An estimated production of approximately 600 barrels of bitumen per day is expected from WP1 once it is brought on production post-restart of the existing plant site.
• WP1 production profits will be split 50/50 between KIGAM and CanAsia until the end of the Project term, after which CanAsia will retain 100% of the production profits.
• Ownership of the solvent steam flood and partial upgrader modules will remain with KIGAM to the end of the 3+1 year project term, at the end of which KIGAM will have the option of transferring ownership to CanAsia, along with any associated abandonment liabilities, for C$1.00 or removing these modules at KIGAM's cost.
• Ownership of WP1, all existing facilities, the new PWB, and the underlying bitumen resource will remain 100% owned by CanAsia at the beginning and end of the Project.
• CanAsia has the right to conduct 100% working interest activities on the non-KIGAM Project lands that may include an extended horizontal SAGD well pair targeting 1,200 bopd utilizing steam capacity from CanAsia's 100% owned existing steam plant.
• Produced water recycle, the most capital-intensive portion of a full-scale commercial development at Sawn Lake will be substantially reduced in upfront cost with the successful testing of Andora's patented PWB design, providing the ability to stage capital expenditures over time towards full development of a future multi-battery, 20,000 bopd project.

While Andora will be the project operator, KIGAM has agreed to fund up to CA$26 million over the project's pilot term. If the project is extended to include a fourth year, any profits from production revenues for the Project will first be applied to cover any overages exceeding the Project Budget, and thereafter, any remaining profits will be split 50/50 between Andora and KIGAM.  

Regarding the partnership, CanAsia CEO Jeff Chisolm said, "The upcoming KIGAM/CanAsia SAGD project will be testing innovative SAGD technology and could be one of the most significant SAGD projects undertaken in Alberta in quite some time. The environmental footprint of this project will be reduced by utilizing CanAsia's PWB-produced water recycle technology and KIGAM's solvent steam flood technology with recycling. This is intended to substantially reduce the project steam oil ratio and carbon dioxide emissions. A successful demonstration of the PWB will provide the technical platform for a modular, staged 20,000 bopd SAGD development."  

CanAsia Energy Corp. is a Canadian oil company focused on projects in Alberta, Canada, and Thailand.

Oil Prices Staying High

Oil prices have shot up significantly over the past year, going from US$67.04 to US$110.43 per barrel as of May 13, 2026. Americans are seeing gas prices at the pump of US$4.50 and up and have been feeling the tightening of their wallets since the U.S.-Iran War started several weeks ago. The closure of the Strait of Hormuz has impacted oil reserves in the West, leaving the U.S. scrambling to fulfill domestic needs.

A predictive article by LiteFinance said that the next 30 days are looking to be just as steep, if not more so. It said that prices could reach as high as US$138.97 per barrel next month unless a ceasefire is agreed upon and maintained.

Still, some bright news on the horizon is that demand for oil may slightly lessen this year. A May 13 article by Trading View said, "OPEC’s latest assessment shows OECD demand nearly flat, with growth of just 100,000 bpd. The Americas are expected to see a modest increase of 200,000 bpd, led by LPG and gasoline, but Europe is forecast to contract slightly by 30,000 bpd due to weaker industrial activity and consumer demand."

If prices are to remain elevated, lessened consumption may alleviate some financial pressure for consumers.

Expert Says Stock Had a "Big Pop"

On May 11, 2026, Chen Lin of What is Chen Buying? What is Chen Selling? spoke about CanAsia, saying: "CEC.v had a big pop last week while I was away. The big news is that the Korean Institute of Geoscience and Mineral Resources (KIGAM) is committing CA$26 million to build three SAGD modules using CEC technology. I talked to the management, and they think the total commitment from the Koreans is north of CA$200 million as they have a team of scientists working in Korea to make sure of the successes, as well as a commitment to build facilities to ship the oil out. The Koreans love the CEC patented technology and plan to first demonstrate it working, then use it throughout Canada and the world, to extract heavy oil. CEC and KIGAM will share the patent royalties."

Lin went on to say, "The first module is planned to be operational next year. The cost to extract oil will be in the US$20-30/barrel range. They were negotiating with the Koreans since last year, and this technology works at pre-Iran war oil price. If this is proven to be working, CEC will likely be taken over by the Korean or big oil companies. This deal does not exclude another company from coming in and bidding for CEC. Also, the Thailand bidding round should be awarded any time now. CEC has 30% of the concession and a few-year deposit is prepaid by its partner." 

24 Months of Planning Laid Out

Per the company announcement, a substantial amount of project engineering has already been completed during the KIGAM Sawn Lake evaluation by a joint team of KIGAM/Andora engineers and geoscientists, and project approval will be filed with the AER in approximately 6-8 months.

All three key modules are currently planned to commence fabrication, generally in parallel, in 6-8 months' time. Module installation is anticipated to commence in approximately 16-24 months.

Ownership & Share Information¹

CanAsia Energy Corp. has a market cap of CA$41.73 million, with 112.79 million shares outstanding. The company's 52-week range is CA$0.06-CA$0.45.

Strategic Investors own 17.73% of shares, while Management & Insiders own 20.29%.

The remaining 61.98% of shares are held by Retail.