Canadian Spirit Resources Inc.
TSX VENTURE : SPI

Canadian Spirit Resources Inc.

October 20, 2005 16:38 ET

Canadian Spirit Resources Drills Four NGC Wells

CALGARY, ALBERTA--(CCNMatthews - Oct. 20, 2005) - Canadian Spirit Resources Inc. (TSX VENTURE:SPI) ("CSRI" or the "Company") announces that it has finished the drilling of four natural gas from coal ("NGC") wells in the Bittern Lake area of central Alberta in conjunction with its joint venture partner Lynden Ventures Ltd. The Company operates and holds a 50 percent working interest in this play.

The first well, 12-06-47-26W4M was completed in the Horseshoe Canyon formation on October 8, 2005 and produced commercial quantities of natural gas and small amounts of formation water during the initial flow-back period. A downhole pump is currently being installed in order to determine the productive capability of the well. Following a production test of up to thirty days, the well will be shut-in to measure pressure build-up which will assist in the determination of reserves attributable to the Company's wells at year end. A further announcement regarding expected production rates from the 12-06 well will be made in late November once the testing of this well is complete.

Based on preliminary results from the 12-06 well, an additional three wells were drilled and cased on the same section. Subject to regulatory approval, these wells will be completed when facilities are available to move the natural gas to market. Gas transportation and electrical power agreements have been signed with the tie-in of all four wells expected to occur in the first quarter of 2006. The potential for additional drilling is being evaluated.

Canadian Spirit Resources Inc. is a natural resources company focusing on the exploration and development of opportunities in the unconventional gas sector of the energy industry (including natural gas from coal, also referred to as coalbed methane or "CBM", shale gas and tight gas sands).



On behalf of the Board of Directors,
Canadian Spirit Resources Inc.

"Phil Geiger"

Phillip D.C. Geiger, President & COO


The corporate information contained in this news release contains 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