CALGARY, ALBERTA–(Marketwired – Apr 29, 2013) –Canadian Spirit Resources Inc. (“CSRI” or the “Corporation”) (TSX VENTURE:SPI) (CSPUF) announces the release of its financial results for the year ended December 31, 2012 and the filing of its 2012 annual audited Financial Statements, Management Discussion and Analysis (“MD&A”) and Forms 51-101F1, F2 and F3.
This news release summarizes information contained in the audited financial statements and MD&A for the year ended December 31, 2012 and should not be considered a substitute for reading these full disclosure documents, as well as the Forms 51-101F1, F2 and F3, which are available on SEDAR atwww.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 ANNUAL DATA|
|(all amounts are presented in Canadian dollars)|
|For the year ended, and as at, December 31,||2012||2011|
|Average sales volumes of natural gas (Mcf/d)||1,719||1,601|
|Average sales price of natural gas ($/Mcf)||$||2.28||$||3.30|
|Natural gas sales, before royalties||$||1,416,116||$||1,731,024|
|Operating netbacks, after royalty credits applied||$||480,904||$||745,879|
|Cash flow from operating activities||$||(1,510,030||)||$||(930,790||)|
|Net loss and comprehensive loss||$||(3,447,246||)||$||(17,575,219||)|
|Loss per share, basic & diluted||$||(0.04||)||$||(0.24||)|
|Net working capital||$||2,975,379||$||2,520,655|
|Common shares outstanding||90,548,661||76,238,661|
|Total capital expenditures||$||2,322,852||$||19,390,622|
CSRI’s natural gas sales volume averaged 1.7 MMcf/d (net) during the twelve months ended December 31, 2012 (2011: 1.6 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 OPERATIONAL HIGHLIGHTS
- In the second quarter 2012, CSRI acquired approximately 64,000 acres (100 sections) of shallow rights land directly offsetting the Corporation’s other shallow rights land in Farrell Creek. It is the Corporation’s intent to evaluate the capability of these formations for produced water disposal in an effort to reduce produced water disposal costs associated with its and other operators’ Montney production.
- The Williston Reservoir Water Pipeline Project (25% owned by CSRI) received approval during 2012 to deliver up to 10,000 m3/d of fresh water from the Williston Reservoir to the Farrell Creek/Altares area in northeastern British Columbia. The project will materially reduce the cost of delivering a secure supply of fresh water used in the fracture stimulation of both vertical and horizontal wells. The water pipeline was commissioned in July 2012.
- In the third quarter 2012, a previously drilled vertical well at 12-7-83-24W6 was successfully fracture stimulated and flow-tested. This well confirmed the prospectivity of natural gas in various zones of the Montney Formation and also enabled the Corporation to retain seven sections of land for an additional term of five years.
- 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.
The Corporation had C$3.0 million of working capital as at December 31, 2012 and has no debt.
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.