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

Canadian Spirit Resources Inc.

February 22, 2011 14:01 ET

Canadian Spirit Resources Inc. Announces Operational Update at Farrell Creek, B.C.

CALGARY, ALBERTA--(Marketwire - Feb. 22, 2011) - Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSX VENTURE:SPI) (PINK SHEETS:CSPUF) is pleased to provide an update to its operations at Farrell Creek, B.C.

Further to the Corporation's news release dated February 1, 2011, CSRI is flowing natural gas from three wells through the Farrell Creek gas plant. Since going on-stream at the end of January, gross daily production has averaged approximately 8 million cubic feet per day. CSRI's working interest is 35% or approximately 460 boepd.

Drilling of a horizontal well targeting the upper Montney was recently spud and is currently being drilled. This well, c-B18-I/94-B-1 is the sixth Montney horizontal well drilled on the joint venture lands by Canbriam Energy BC Partnership (the "Operator"). With spring break-up approaching and as a means of reducing costs, the c-B18-I/94-B-1 well is expected to be fracture stimulated and tied-in for production early in the third quarter together with two existing upper Montney horizontal wells that are waiting on completion. The drilling of up to three additional horizontal wells is planned by the Operator during the second half of 2011.

CSRI and its joint venture partner have made significant progress in demonstrating the potential value of the natural gas resource at Farrell Creek and are working effectively together to optimize the completion of Montney horizontal wells in the area.

CSRI is a natural resources company focusing on the identification and development of opportunities in the unconventional gas sector of the energy industry.

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

On behalf of the Board of Directors,

CANADIAN SPIRIT RESOURCES INC.

Don Gardner, Chief Executive Officer

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.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS 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
    (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