CALGARY, ALBERTA–(Marketwired – Oct. 14, 2016) – Canadian Spirit Resources Inc. (“CSRI” or the “Corporation”) (TSX VENTURE:SPI)(OTCBB:CSPUF) is pleased to announce that production from the Montney formation at Farrell Creek/Altares was restarted on October 4, 2016. Production had been suspended as of March 31, 2016 due to extremely low natural gas prices. With prices at Station 2 exceeding $2.75/Mcf in recent weeks, CSRI and its joint venture partner Canbriam Energy Inc. made the decision to bring the production back on line. Current average production is 4.4 Mmcf/d with CSRI’s 35% share being 1.5 Mmcf/d.
At the c-69-H/094-B-01 well that was drilled in the first quarter 2016, recently retrieved pressure recorder information shows that the Montney formation is over pressured but not to the extreme values encountered while drilling. The overlying Doig formation appears to be the cause of the extreme high pressures and could be a candidate for investigation in the future. The information gained from the c-69-H/094-B-01 well has further delineated the Montney resource on CSRI’s 100% working interest lands.
The Federal Government’s recent environmental approval of the Pacific NorthWest LNG project at Prince Rupert, British Columbia, as well as the strong, positive improvement in natural gas prices and the further delineation of CSRI’s Montney formation resources on its 26,000 net acres at Farrell Creek (strategically located along the current and proposed major pipeline routes) serve to reinforce the Corporation’s value as a supplier of natural gas to North American and potential Asian markets.
The Corporation will continue to review strategic options to enhance shareholder value.