CEC
CANASIA ENERGY CORP
stock CVE

Great question. This is why I posted this because I'm looking to try to see this from different angles.
Per the press release KIGAM does and at the end of 4 years either decommissions them at their own cost or can sell them to CEC for $1. In the meantime CEC gets 50% of the profits from operating the modules. The cost of the modules versus the cost to pack them up and decommission them I don't know, but with a optional sale price for $1 I had assumed it likely they would exercise this to avoid decomissioning obligations that are 100% their cost if they dont.
Ownership of what's already there, the well pair drilled in the past and facilities already there, the minieral leases, remains with CEC. Remember they are restarting up an old pilot well here on their lands.
However keep in mind value here:
1. The patent and future royalties is now 50% owned by each party. KIGAM has committed to expended all of this to get this benefit implying they see that value there for their expenditures. Discussion of future royalties shows a path to future additional monitization.
2. This is on top of the cash generated in this time and on top of still owning the mineral leases they can develop as the PR says up to 20,000 BOE/D. While this is far out I discount its benefits accordingly, it could also be turned into a sale to monetize when its running again.
3. CEC has a 30% interest in a bid in Thailand for a new concession overseas. This was originally the news I was waiting for and is overdue at this point (I think maybe the February Thailand election delayed this due to no fault of CEC). See July 2025 PR and subsequent annual reports issued that speak to this. If you look into their past this is what they have done before and have experience with.
Risks? Sure, but risks with further upsides versus current market value of CEC which is quite low in comparison. It continues to feel like a undervalued bet with multiple chance to explode.

Wait, so KIGAM owns the modules until the end? If they pull out, CEC is back to square one. High risk

Great question. This is why I posted this because I'm looking to try to see this from different angles.
Per the press release KIGAM does and at the end of 4 years either decommissions them at their own cost or can sell them to CEC for $1. In the meantime CEC gets 50% of the profits from operating the modules. The cost of the modules versus the cost to pack them up and decommission them I don't know, but with a optional sale price for $1 I had assumed it likely they would exercise this to avoid decomissioning obligations that are 100% their cost if they dont.
Ownership of what's already there, the well pair drilled in the past and facilities already there, the minieral leases, remains with CEC. Remember they are restarting up an old pilot well here on their lands.
However keep in mind value here:
1. The patent and future royalties is now 50% owned by each party. KIGAM has committed to expended all of this to get this benefit implying they see that value there for their expenditures. Discussion of future royalties shows a path to future additional monitization.
2. This is on top of the cash generated in this time and on top of still owning the mineral leases they can develop as the PR says up to 20,000 BOE/D. While this is far out I discount its benefits accordingly, it could also be turned into a sale to monetize when its running again.
3. CEC has a 30% interest in a bid in Thailand for a new concession overseas. This was originally the news I was waiting for and is overdue at this point (I think maybe the February Thailand election delayed this due to no fault of CEC). See July 2025 PR and subsequent annual reports issued that speak to this. If you look into their past this is what they have done before and have experience with.
Risks? Sure, but risks with further upsides versus current market value of CEC which is quite low in comparison. It continues to feel like a undervalued bet with multiple chance to explode.

Wait, so KIGAM owns the modules until the end? If they pull out, CEC is back to square one. High risk