Canadian Spirit Resources Inc.
TSX VENTURE : SPI

Canadian Spirit Resources Inc.

November 03, 2005 14:17 ET

Canadian Spirit Resources Plans Five Well Program

CALGARY, ALBERTA--(CCNMatthews - Nov. 3, 2005) - Canadian Spirit Resources Inc. (TSX VENTURE:SPI) ("CSRI" or the "Company") announces that based on positive preliminary test results from the Gething formation and the availability of drilling equipment, the Company plans to drill up to five wells in the West Farrell area of northeastern British Columbia. Applications to license the first two wells in this planned five well program have been submitted with drilling scheduled for the current fall and winter season. Four of these wells, to be drilled in close proximity to the c-83-H test well, are designed to confirm the productive capability of the Gething formation and to gather data for the purpose of optimizing the drilling and completion of future wells. Each of these wells is expected to cost approximately C$600,000 to drill and case. The fifth well is a contingent exploratory well and if needed, would further delineate the resource potential of the Company's 37,000 gross acres in the greater Farrell Creek area.

Applications for the remaining wells will be submitted during November. A rig has been contracted to drill up to five wells in the December 2005 and January 2006 period, subject to receipt of regulatory approval which is expected before the end of November. All sites have been surveyed and lease locations will be built upon approval.

Evaluation of the productive capability of the Gething formation in the Company's c-83-H well is proceeding as planned. Fourteen of the more than twenty prospective intervals within the c-83-H bore hole have been evaluated with encouraging results from a number of these intervals. A down-hole pump has been installed and is currently removing small quantities of saline formation water in order to measure the unstimulated, combined production from the well. The fracture stimulation of a selected number of intervals is scheduled for early December 2005 and will be followed by a final test of the well's productive capability.

Testing of the Bluesky formation at both the c-48-I and c-A83-H locations has yielded both natural gas and water in varying quantities. To-date, the results are inconclusive and have not met the threshold required for the stand-alone development and production. Down-hole pumps have been installed at both locations in order to determine if the Bluesky formation is capable of making a contribution to production from the Gething formation should commingling of these two zones be permitted. The Company expects that the Bluesky formation is present on most of the Farrell Creek lands and is therefore worthy of further evaluation. A consultant has been retained to provide a review of available technical data with a view to optimizing the completion methods used by the Company.

The current evaluation and drilling program is designed to provide the Company's independent qualified reserves evaluator with as much data as possible by mid-February 2006 when the annual reserve evaluation process is scheduled to begin.

The Company has sufficient working capital to complete the current program planned for the Farrell Creek area and the base capital and administration budget for 2006.

Canadian Spirit Resources Inc. is a natural resources company focusing on the identification and development opportunities in the unconventional gas sector of the energy industry. Since 2002, the mission of the Company has been to develop 1 Tcf of natural gas over a five year period from unconventional resource plays in western Canada. Within three years, the Company has identified several large resource plays, assembled a unique, high working interest land position in over 39,000 gross acres (of which 37,000 are located in British Columbia) and is currently evaluating the productive capability of its principal resource property.

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

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