I see Cancoil situation has improved greatly and it's on the verge of materializing the fundamental.
Cancoil Integrated Services Inc -
Cancoil second quarter results
Cancoil Integrated Services Inc CAN
Shares issued 12,075,000 2000-01-26 close $0.46
Thursday Jan 27 2000
Mr. Mark Andreychuk reports
Cancoil achieved second quarter revenue of $533,000 with its one operating coiled tubing unit as compared with first quarter revenue of $621,000. There is no comparable quarter in the previous fiscal year as the unit was still under construction.
Lower revenues resulted from accommodating customer requirements and operational circumstances in the course of further establishing the service capabilities of the unit in its initial fully operational year.
Net earnings for the second quarter were $54,000, down from net earnings of $276,000 achieved in the first quarter. This is due to the lower revenue and increased overhead costs arising primarily from costs incurred with the equity financing completed during the quarter. Because Cancoil has a tax loss carried forward of $705,000 it has not incurred any income taxes.
Cancoil completed its private placement as announced in Stockwatch Oct. 12 with ARC Canadian Venture Fund for net proceeds of $2.85-million whereby ARC received eight million shares immediately and warrants to acquire six million additional shares at 50 cents in the future. The proceeds of $2.85-million were used for the construction of coiled tubing units No. 2002 and 2003. Subsequent to the end of the second quarter, Cancoil obtained a credit facility of $3.74-million from the National Bank of Canada as announced in Stockwatch Dec. 8, 1999. This facility covers the cost of constructing coiled tubing unit No. 2004 and the retirement of a long-term debt obligation to Mercedes Benz. In addition, Cancoil now has an operating line of credit facility with the National Bank.
Cancoil's first unit, rig 2001 continues to operate successfully and efficiently and was employed primarily in coiled tubing fracturing during the second quarter. On Dec. 21, 1999, a U.S. patent for this unique rig was granted. The company currently has three coiled tubing rigs under construction scheduled to be operational after spring breakup.
Interest in Cancoil's unique coiled tubing technology remains high. It is anticipated that all four of Cancoil's units will be contracted and operational by June, 2000. The company continues to investigate new opportunities outside of Canada and expanded applications for its technology.
STATEMENT OF EARNINGS
Three months ended Nov. 30
1999 1998
Coiled tubing drilling
and service revenue $ 533,354 $ -
--------- ----------
Coiled tubing drilling
and service expense 270,172 -
General and admin-
istrative expense 120,640 30,461
Interest - short-term (5,970) (994)
Interest on long-term
debt 45,036 -
Amortization 49,142 -
--------- ----------
479,020 29,467
--------- ----------
Net earnings (loss) $ 54,334 $ (29,467)
========= ==========
Earnings (loss) per share $0.004 $(0.004)
STATEMENT OF EARNINGS
Six months ended Nov. 30
1999 1998
Coiled tubing drilling
and service revenue $1,154,159 $ -
---------- ---------
Coiled tubing drilling
and service expense 450,512 -
General and admin-
istrative expense 188,872 54,906
Interest - short-term (5,970) (5,371)
Interest on long-term
debt 92,126 -
Amortization 98,284 -
--------- ----------
823,824 49,535
--------- ----------
Net earnings (loss) $ 330,335 $ (49,535)
========= ==========
Earnings (loss) per share $0.024 $(0.007)
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