Canadian Spirit Resources Inc.
COMPANY DATA | INTRODUCTION
| PROJECT IN HAND | MANAGEMENT
NEWS UPDATE | CHINESE
| Address: | Suite 1950, Ford Tower 633 6th Avenue S.W. Calgary, Alberta Canada T2P 2Y5 |
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| Tel No.: | (403) 539-5005 | |
| Fax No.: | (403) 262-4177 | |
| Web Site: | www.csri.ca | |
| Email: | info@csri.ca | |
| Contact Person: | Phillip D.C. Geiger (or) | Donald R. Gardner |
| Position: | President & COO | CEO & Secretary |
| Traded Market: | TSX-V; OTCBB |
| Traded Symbol: | SPI; CSPUF |
| Outstanding Shares: | 76.2 million |
| Public Float: | 76.2 million |
| 52 Week High: | $ 1.90 |
| 52 Week Low: | $ 0.55 |
| Present Price: | Click Here |
INTRODUCTION
Canadian Spirit Resources Inc. (“CSRI”) is a natural resources company focusing on the identification and development of opportunities in the unconventional gas sector of the energy industry. The principal asset of CSRI is its Montney joint venture with Canbriam Energy (“Montney JV”) located in the Farrell Creek area of northeastern British Columbia, Canada. The ultimate objective is the sale of CSRI to a larger company.
PROJECT IN HAND
Montney JV, Farrell Creek area, British Columbia
CSRI and its JV partner brought their Montney JV into production in January 2011. Five Montney wells are currently tied-into the 10 MMcf/d gas facility. All of these wells are located on the west portion of the JV’s Montney lands. Following other area operators that include Talisman Energy (purple), Terra Energy (dark green) and ARC Energy (dark yellow), the JV is moving a portion of its capital program to the east Farrell Creek lands to test the potential for NGLs with a vertical well. Currently, NGLs sell for approximately the same value as oil on a per barrel basis.
Like other Montney shale operators, the Montney JV uses trucks to transport water for the fracture stimulation of its wells. To reduce costs, the JV is currently building a water pipeline project. The water pipeline will extend from the Williston Lake Reservoir to the Farrell Creek Montney play with Canbraim holding a 75% WI and CSRI retaining a 25% WI. The Montney JV has secured access of up to 10,000 cubic meters of water per day (gross) on a year-round basis over the next 20 years. The project will have the capability for approximately 180 typical horizontal Montney well completions per year equivalent using 20,000 cubic meters of water per well and is planned to be fully operational by year-end 2011. The JV estimates that the savings could be up to C$500,000 per well if the Montney JV is fully developed. There are over 900 well locations estimated for full development of the Montney JV. This water pipeline project is unique to any junior unconventional gas play in Canada.
As you can see from the map, the Montney JV is located in close proximity to the Talisman Montney shale play. Early in 2011, Talisman announced that Sasol had agreed to acquire a 50% WI in 80 sections (51,200 acres) of Montney rights in the Farrell Creek area and another 50% WI in 85 sections (54,400 acres) approximately 25 km north of their “Cypress A” play for a total of $2.1 billion. Taking into account the existing production, CSRI estimates that Sasol paid Talisman approximately $17 million/section. CSRI has 40.8 net sections of Montney rights (26,112 acres).
The Talisman/Sasol JV is planning to expand their Farrell Creek processing plant capacity to 280 MMcf/d and increase gross average production to 100-120 MMcf/d.
LNG EXPORT – OPERATORS ACCESSING THE ASIAN MARKETKitimat LNG is planning on having an operating LNG export terminal on the coast of British Columbia by 2015. Other companies that are studying the feasibility of exporting LNG to the Asian market include Shell, Progress/Petronas and Talisman.
WHY INVEST IN CSRI?
On April 30, 2012, Canadian Spirit Resources Inc. announced results of an independent Montney resource assessment of CSRI's Farrell Creek lands in British Columbia. These results include a significant volume of natural gas liquids being identified within the Company's Montney formation lands. The resource assessment was prepared by GLJ Petroleum Consultants. Highlights include:
Natural gas liquids: GLJ's best estimate (P50) of company interest economic contingent liquids resource is 766,000 barrels (high and low estimates of 6,711,000 and nil).
On April 2, 2012, Canadian Spirit Resources Inc. announced that it has appointed Alfred Sorensen, currently a member of the board of directors of CSRI, as interim chief executive officer of the corporation, effective immediately.
Don Gardner, formerly chief executive officer, will continue to be involved in the corporation's affairs on a reduced basis as he recovers from recent health issues. During this interim period, Mr. Gardner will assist and report to Mr. Sorensen.
On March 30, 2012, Canadian Spirit Resources Inc. announced its 2011 financial results and filing of annual disclosure documents. Canadian Spirit Resources loses $17.57-million in 2011.
On February 27, 2012, Canadian Spirit Resources Inc. announced that it has obtained a new $3.5-million revolving credit facility with ATB Corporate Financial Services.
On January 30, 2012, Canadian Spirit Resources Inc. announced that its board of directors has approved a grant of 1,195,000 options to acquire shares of the corporation. Independent directors of the corporation were granted a total of 300,000 options. Officers and employees were granted a total of 895,000 options. All the options have a term of five years and may be exercised at a price of 75 cents per share.
On January 9, 2012, Canadian Spirit Resources Inc. announced that has appointed Alfred Sorensen, CA, of Calgary, Alberta, as a Director of the Corporation effective immediately. Mr. Sorensen is currently an independent consultant.
On January 3, 2012, Canadian Spirit Resources Inc. announced that the TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered private placement announced November 18, 2011, and December 7, 2011.
On December 30, 2011, Canadian Spirit Resources Inc. announced that Rudolf Cech will retire as a director effective immediately to focus on his consulting and private company activities. Mr. Cech has agreed to continue his relationship with the corporation in a consulting capacity.
On December 28, 2011, Canadian Spirit Resources Inc. announced that it has placed a total of 2.46 million units at a price of 75 cents per unit for gross proceeds of $1.84-million pursuant to a private placement announced on Nov. 18, 2011, and amended on Dec. 7, 2011.
On December 12, 2011, Canadian Spirit Resources Inc. announced initial closing of $1.2-million private placement. The Company has placed 1.6 million units at a price of 75 cents per share for gross proceeds of $1.2-million.
On December 7, 2011, Canadian Spirit Resources Inc. announced that further to the news release of November 18, 2011, announcing a non-brokered private placement of units, Canadian Spirit has amended the offering price and has extended the closing date of the private placement. The Company decreased the private placement to $3-million. Subject to TSX Venture Exchange approval, the Company anticipates closing the non-brokered private placement of up to 4.0 million units at a price of 75 cents per unit on or about December 12, 2011. Each unit will consist of one common share and one-half of one share purchase warrant.
CSRI ANNOUNCES 3Q 2011 INTERIM FINANCIAL RESULTS
CSRI has filed its Interim Financial Statements and MD&A for the period ended September 30, 2011 and the related news release dated November 30, 2011. These documents will be available on SEDAR at www.sedar.com or can be viewed on the Company’s website at www.csri.ca.
On November 30, 2011, Canadian Spirit Resources Inc. announced its interim financial results and management's discussion and analysis (MD&A) for the three- and nine-month periods ended Sept. 30, 2011.
Highlights
On November 18, 2011, Canadian Spirit Resources Inc. announced that it is proposing to undertake a $3.4-million non-brokered private placement. The corporation proposes to issue up to four million units at a price of 85 cents per unit. Each unit will consist of one common share and one-half of one share purchase warrant.
On November 8, 2011, Canadian Spirit Resources Inc. announced that it has appointed Joseph Iannicelli of Montreal, Que., as a director of the Company, effective immediately. Mr. Iannicelli is currently the president and chief executive officer of Standard Life Assurance Co. of Canada.
On October 31, 2011, Canadian Spirit Resources Inc. announced that its director, Robert P. Winnitoy, has advised the corporation that he will retire as a director effective November 1, 2011, to focus on his consulting activities. Mr. Winnitoy has agreed to continue his relationship with the corporation in a consulting capacity.
On October 17, 2011, Canadian Spirit Resources Inc. announced that its horizontal Montney well, c-B18-I/94-B-1, was recently placed on production at a flow rate of approximately five million cubic feet per day.
The c-B18 well exhibited strong flow characteristics during the two-week test period prior to being placed on production, and the performance appears to be consistent with other typical middle Montney wells completed in the immediate Farrell Creek area. Together with three Montney wells brought on stream in January, 2011, and a fourth in September, 2011, the Farrell Creek gas facility is approaching its capacity. The addition of the c-B18 well is expected to double the Company's net share of production in the fourth quarter of 2011.
On August 31, 2011, Canadian Spirit Resources Inc. announced that it is participating in a water pipeline project that will result in significant cost reductions during the development of the corporation's Farrell Creek Montney play. This project is a joint venture between the corporation and Canbriam Energy B.C. Partnership Inc.
The Project, to be operated by Canbriam, has approval to deliver up to ten thousand cubic meters of water per day from the Williston Reservoir to the Farrell Creek/Altares area in northeastern British Columbia on a year-round basis over the next twenty years. CSRI will retain a 25% working interest in the water pipeline project with Canbriam holding a 75% working interest.
MANAGEMENT & DIRECTORS
Management
Donald R. Gardner, CEO & Corporate Secretary
Phillip D.C. Geiger, President & COO
Dean G. Hill, V.P. Finance & CFO
Paul A. Smolarchuk, V.P. Engineering & Operations
Sean A. Kleiner, New Ventures Manager
Directors
Alfred B. Sorensen
J.R. Richard Couillard
Donald R. Gardner
Phillip D.C. Geiger
Philip H. Grubbe
Susannah S. Tam
George W. Watson, Chairman
Joseph Iannicelli
NEWS UPDATE
Shares: 2,455,300
Price: 75 cents
Warrants: 1,227,650 share purchase warrants to purchase 1,227,650 common shares
Exercise price: $1.10 for a period of one year