CALGARY, ALBERTA--(Marketwired - May 29, 2013) - Canadian Spirit Resources Inc. (TSX VENTURE:SPI)(OTCBB:CSPUF) ("CSRI" or the "Corporation") announces the release of its interim financial results and Management Discussion and Analysis ("MD&A") for the three month period ended March 31, 2013.
This news release summarizes information contained in the unaudited interim condensed financial statements and MD&A for the three month period ended March 31, 2013 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 three months ended, and as at, March 31, | 2013 | 2012 | ||
| Average sales volumes of natural gas (Mcf/d) | 1,400 | 1,934 | ||
| Average sales price of natural gas (per Mcf) | $ | 3.00 | $ | 2.11 |
| Natural gas sales, before royalties | $ | 378,014 | $ | 372,252 |
| Operating netbacks, after royalty credits applied | $ | 197,758 | $ | 87,174 |
| Cash flow from operating activities | $ | (182,312) | $ | (271,242) |
| Net loss and comprehensive loss | $ | (516,790) | $ | (942,567) |
| Loss per share, basic & diluted | $ | (0.01) | $ | (0.01) |
| Net working capital | $ | 1,928,244 | $ | 1,885,895 |
| Total assets | $ | 62,169,311 | $ | 62,118,639 |
| Shareholders' capital | $ | 60,020,347 | $ | 58,554,046 |
| Common shares outstanding | 90,548,661 | 76,238,661 | ||
| Total capital expenditures | $ | 836,776 | $ | 359,732 |
PRODUCTION
CSRI's natural gas sales volume averaged 1.4 MMcf/d (net) during the three months ended March 31, 2013 (2012: 1.9 MMcf/d (net)). 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
CSRI continues to focus on its eastern lands due to their prospectivity for natural gas liquids. A vertical well at 3-24-83-25W6 was drilled in March 2013 and allowed CSRI to retain 8 sections of land for an additional term of 5 years. This well was designed to be re-entered at a later date subject to improved natural gas prices. Gas analysis taken from 3-24 indicated that processed liquids would be in the range of 5-10 BBls per MMcf. Should this well be re-entered, frac water for the completion activities would be supplied by the water pipeline (25% owned by CSRI) that the operator, Canbriam Energy, has constructed from the Williston Reservoir. CSRI is also continuing to evaluate the capability of using shallower formations as produced water disposal zones.
Being able to create a solution for produced water disposal, combined with CSRI's 25% working interest in the 10,000 m 3 /d source water pipeline from the Williston Reservoir, will provide the Corporation with a fully integrated approach to water handling in the Farrell Creek area. With both access to fresh water and an environmentally safe plan to dispose of produced water, CSRI is capable of ramping up a Montney Formation drilling program quickly should natural gas prices improve in the near future.
FINANCIAL RESOURCES
The Corporation had C$1.9 million of working capital as at March 31, 2013 and has no debt.
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.
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