Canadian Spirit Resources Inc.

TSX VENTURE : SPI
OTCBB : CSPUF


Canadian Spirit Resources Inc.

August 19, 2014 17:40 ET

Canadian Spirit Resources Inc. Announces Second Quarter 2014 Financial Results

CALGARY, ALBERTA--(Marketwired - Aug. 19, 2014) - 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, 2014.

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, 2014 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.

SELECTED QUARTERLY DATA
(all amounts are presented in Canadian dollars)
For the three months ended, and as at, June 30, 2014 2013
Average sales volumes of natural gas (Mcf/d) 952 1,289
Average sales price of natural gas (per Mcf) $ 4.40 $ 3.43
Natural gas sales, before royalties $ 380,992 $ 402,198
Operating netbacks, after royalty credits applied $ 200,094 $ 205,440
Cash flow from operating activities $ (55,066 ) $ (92,359 )
Net loss and comprehensive loss $ (402,123 ) $ (471,932 )
Loss per share, basic & diluted $ (0.00 ) $ (0.00 )
Net working capital $ 8,309,664 $ 1,622,727
Total assets $ 75,000,431 $ 61,441,824
Shareholders' capital $ 71,508,034 $ 59,581,077
Common shares outstanding 128,050,592 90,548,661
Total capital expenditures $ 1,355,007 $ 286,967

PRODUCTION

The Corporation has 5 (1.75 net) Montney wells being produced through its 10 MMcf/d (3.5 net) joint venture gas plant located on its western lands at Farrell Creek, British Columbia.

HIGHLIGHTS

  • In June 2014, the Corporation raised total gross funding proceeds of $7.8 million. The funding was comprised of units ($2.6 million), Flow-through shares ($3.5 million), and the exercise of share purchase warrants ($1.7 million). The proceeds were used for the drilling of the c-81-H/94-B-1 well in June/July 2014 and for general corporate purposes.

  • CSRI successfully drilled and cased its 100% working interest horizontal well at c-81-H/94- B-1. The well commenced drilling on June 23, 2014 and was cased and rig released on July 31, 2014. Preparations are now underway, subject to financing, to hydraulically fracture and tie-in the well for production.

  • As a result of the drilling of the 1-1-83-26W6 well in the first quarter 2014 and the c-81-H/94- B-1 well as per above, the Corporation has extended the tenure on 9,961 gross acres (4,031 gross hectares) of land.

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

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