CALGARY, ALBERTA--(Marketwire - Aug. 15, 2012) - Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSX VENTURE:SPI)(OTCBB:CSPUF) announces the release of its interim financial results and Management Discussion and Analysis ("MD&A") for the three and six month periods ended June 30, 2012.
This news release summarizes information contained in the unaudited interim condensed financial statements and MD&A for the three and six month periods ended June 30, 2012 and should not be considered a substitute for reading these full disclosure documents which are available on SEDAR at www.sedar.com or the Corporation's website at www.csri.ca.
CSRI is a natural resources company focusing on the identification and development of opportunities in the unconventional natural gas sector of the energy industry.
| SUMMARY QUARTERLY DATA | |||||||
| (all amounts are presented in Canadian dollars) | |||||||
| For the six months ended, and as at, June 30, | 2012 | 2011 | |||||
| Average sales volumes of natural gas (Mcf/d) | 1,882 | 1,478 | |||||
| Average sales price of natural gas ($/Mcf) | $ | 1.98 | $ | 3.44 | |||
| Natural gas sales, before royalties | $ | 678,235 | $ | 756,576 | |||
| Operating netbacks, after royalty credits applied | $ | 145,096 | $ | 394,249 | |||
| Cash flow from operating activities | $ | (1,177,030 | ) | $ | (470,321 | ) | |
| Net loss and comprehensive loss | $ | (2,247,750 | ) | $ | (1,702,873 | ) | |
| Loss per share, basic & diluted | $ | (0.03 | ) | $ | (0.02 | ) | |
| Net working capital | $ | 4,704,624 | $ | 14,927,507 | |||
| Total assets | $ | 63,334,637 | $ | 76,304,148 | |||
| Shareholders' capital | $ | 61,498,754 | $ | 73,658,037 | |||
| Common shares outstanding | 90,548,661 | 74,233,761 | |||||
| Total capital expenditures | $ | 863,803 | $ | 3,496,269 | |||
PRODUCTION
CSRI's natural gas sales volume averaged 1.9 MMcf/d (net) during the six months ended June 30, 2012. The Corporation has 5 (1.75 net) Montney wells being produced through its 10 MMcf/d (3.5 net) gas plant located on its western lands at Farrell Creek, British Columbia.
FARRELL CREEK OUTLOOK
Due to the depressed state of natural gas prices, and the fact that the natural gas currently being produced has no associated natural gas liquids, the Corporation has no immediate plans for further development activity on its western lands.
CSRI continues to focus on its eastern lands due to their prospectivity for natural gas liquids. Along with the operator, Canbriam Energy, the Corporation intends to frac and test the previously drilled vertical well at 12-7 in the third quarter 2012. This well will be used to help optimize where future horizontal wells will be placed into the Montney Formation (upper, middle, lower) such that natural gas and natural gas liquids production can be maximized.
With a successful test at 12-7, the Corporation intends to drill and frac a new horizontal well on its eastern lands at 1-25. Frac water for these activities will be supplied by the water pipeline (25% owned by CSRI) from the Williston Reservoir which was commissioned recently.
FINANCIAL RESOURCES
The Corporation currently has no debt, and has C$4.7 million of working capital as at June 30, 2012.
Information regarding CSRI is available on SEDAR at www.sedar.com or the Corporation's website at www.csri.ca.
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 news release
Contact Information:
Alfred Sorensen
(403) 539-5005
(403) 262-4177 (FAX)
alfred.sorensen@csri.ca
Canadian Spirit Resources Inc.
Phil Geiger
(403) 539-5005
(403) 262-4177 (FAX)
phil.geiger@csri.ca