Canadian Spirit Resources Inc.
TSX VENTURE : SPI
PINK SHEETS : CSPUF

Canadian Spirit Resources Inc.

September 29, 2009 16:49 ET

Canadian Spirit Resources Inc. Announces Canbriam Energy Inc. Spuds Vertical Well Targeting the Montney Formation at Farrell Creek, B.C.

CALGARY, ALBERTA--(Marketwire - Sept. 29, 2009) - Canadian Spirit Resources Inc. ("CSRI" or the "Company") (TSX VENTURE:SPI) (PINK SHEETS:CSPUF) is pleased to announce that joint venture partner Canbriam Energy Inc. ("Canbriam"), operator of the Montney project, has spud a vertical well at the Farrell Creek b-17-I location targeting the Montney Formation. It is anticipated that the b-17-I well will be drilled and completed by Canbriam by late November and is part of a multi-well program planned for the area. Canbriam will fund the cost of this well pursuant to the joint venture agreement.

The b-17-I well is located on the western portion of the Company's Farrell Creek lands approximately 500 meters west of the Spectra Energy pipeline. The Company's Farrell Creek Montney lands are comprised of 21 sections in the Western portion of the Farrell Creek lands and 23 sections in the eastern portion of the Farrell Creek lands for a total of 44 gross sections (15.4 net sections to CSRI) of deep rights.

There are currently 21 horizontal and 10 vertical Montney wells either drilled or licensed by other operators in Farrell Creek and areas adjacent. Immediately north of the Company's lands, Talisman Energy Inc. is in the process of completing several horizontal wells and is constructing an expandable central (sweet) gas processing facility with a capacity of up to 30 mmcf/d. CSRI benefits from successful drilling activity in the area as it reduces the exploration risk associated with its Farrell Creek Montney project.

CSRI is a natural resources company focusing on the identification and development of opportunities in the unconventional gas sector of the energy industry. The mission of the Company is to develop 1 trillion cubic feet of natural gas from unconventional resource plays in western Canada.

The Company is currently evaluating the productive capability of both its shallow Gething play and its deeper Montney play through joint ventures with two well-capitalized partners. Both of these plays are located on the Company's principal resource property at Farrell Creek, British Columbia. Currently, CSRI is well funded with C$10.1 million of working capital (C$0.21 per share) and no debt and has minimal capital commitments associated with the Farrell Creek property through the end of 2009.

Information regarding CSRI is available on SEDAR at www.sedar.com or the Company's website at www.csri.ca.

On behalf of the Board of Directors,

CANADIAN SPIRIT RESOURCES INC.

Chief Executive Officer & Secretary

The corporate information contained in this news release may contain forward-looking forecast information. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonably accurate by CSRI at the time of preparation, may prove to be incorrect. The actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. Consequently there is no representation by CSRI that actual results achieved during the forecast period will be the same in whole or in part as those forecast.

THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE INFORMATION CONTAINED HEREIN AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

Contact Information

  • Canadian Spirit Resources Inc.
    Phil Geiger
    (403) 539-5005
    (403) 262-4177 (FAX)
    phil.geiger@csri.ca
    or
    Canadian Spirit Resources Inc.
    Don Gardner
    Chief Executive Officer & Secretary
    (403) 539-5005
    (403) 262-4177 (FAX)
    don.gardner@csri.ca
    or
    Canadian Spirit Resources Inc.
    Adam Buchanan
    Investor Relations
    (403) 539-5005
    (403) 262-4177 (FAX)
    adam.buchanan@csri.ca
    www.csri.ca