Canadian Spirit Resources Inc.
TSX VENTURE : SPI
OTCBB : CSPUF

Canadian Spirit Resources Inc.

November 27, 2014 15:28 ET

Canadian Spirit Resources Inc. Announces Third Quarter 2014 Financial Results

CALGARY, ALBERTA--(Marketwired - Nov. 27, 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 nine month periods ended September 30, 2014.

This news release summarizes information contained in the unaudited interim condensed financial statements and MD&A for the three and nine month periods ended September 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. The Corporation has 5 (1.75 net) Montney wells being produced through its 10 MMcf/d (3.5 net) capacity joint venture gas plant located on its western lands at Farrell Creek, British Columbia.

SELECTED FINANCIAL DATA

(all amounts are presented in Canadian dollars, unless otherwise indicated)

For the three month periods ended September 30, For the nine month periods ended September 30,
2014 2013 2014 2013
Average sales volumes of natural gas (Mcf/d) 905 1,195 970 1,294
Average sales price of natural gas (per Mcf) $ 3.70 $ 2.64 $ 4.43 $ 3.02
Natural gas sales, before royalties $ 308,338 $ 290,704 $ 1,174,400 $ 1,070,916
Operating netbacks, after royalty credits applied $ 154,571 $ 133,376 $ 741,301 $ 536,574
Cash flow from operating activities $ (285,609 ) $ (92,534 ) $ (300,889 ) $ (367,205 )
Net loss and comprehensive loss $ (463,418 ) $ (409,923 ) $ (3,021,886 ) $ (1,398,645 )
Loss per share, basic & diluted $ (0.01 ) $ (0.01 ) $ (0.03 ) $ (0.02 )
Gross capital expenditures (recoveries) $ 3,692,373 $ (22,753 ) $ 9,640,778 $ 1,100,990
As at September 30,
2014 2013
Net working capital $ 4,692,898 $ 1,481,064
Total assets $ 73,767,781 $ 61,029,689
Shareholders' capital $ 71,343,315 $ 59,180,491
Number of common shares outstanding 128,850,592 90,548,661

HIGHLIGHTS

  • CSRI's 100% working interest horizontal well at c-81-H/94-B-1, that was successfully drilled and cased in July 2014, will, subject to financing, be hydraulically fracture stimulated and tied-in for production in 2015. Repairs and modifications at the jointly owned water pipeline facility and high industry utilization of fracture stimulating equipment have contributed to this new schedule.
  • In addition to extending the term on six sections of land a minimum of five years, the c-81-H/94-B-1 well earned an additional 1,850 acres of land and increased CSRI's 100% working interest to 16,960 acres or 26.5 sections. CSRI's Montney acreage position at Farrell Creek is now 26,507 acres or 41.4 net sections.
  • A third party well, approximately 3.3 kilometers east of CSRI's 100% working interest lands was flow tested up casing at an announced steady rate of 7.9 MMcf/d at a pressure of 1,250 psi. This well further highlights the Montney potential in the area of CSRI's eastern block lands.
  • On October 21, 2014, the government of British Columbia announced the terms of its liquefied natural gas (LNG) tax. Response from industry has been positive especially from the companies most advanced in their final investment decision schedule.
  • TransCanada Pipelines Limited has submitted the re-routing plan for their proposed Prince Rupert Gas Transmission pipeline. The new route follows the current Spectra pipeline right-away going through CSRI lands.

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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