SPI Canadian Spirit Resources Inc

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 m3/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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Canadian Spirit Resources Inc.
(403) 539-5005
Fax: (403) 262-4177
Alfred Sorensen: alfred.sorensen@csri.ca
Phil Geiger: phil.geiger@csri.ca
www.csri.ca

Canadian Spirit Resources (TSXV:SPI)
Historical Stock Chart
From May 2024 to Jun 2024

Canadian Spirit Resources (TSXV:SPI)
Historical Stock Chart
From Jun 2023 to Jun 2024