Exploration & Production

Canadian Spirit Production Declines; 4Q Results

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Canadian Spirit Resources Inc. has announced the release of its financial results for the year ended December 31, 2013 and the filing of its 2013 annual audited Financial Statements, Management Discussion and Analysis and Forms 51-101F1, F2 and F3.

Production

CSRI's natural gas sales volume averaged 1.25 MMcf/d (net) during the twelve months ended December 31, 2013 (2012: 1.72 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.

Highlights

• A vertical well at 3-24-83-25W6 was drilled in March 2013 which 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.
• In March 2014, CSRI drilled a 100% working interest horizontal well at its 1-1-83-25W6 location. The well, which qualified for Canadian Exploration Expense treatment, was drilled for land retention purposes and will allow the Corporation to retain 9 sections of land for an additional term of 5 years.
• In December 2013, the Corporation raised gross funding totaling $6.1 million. The funding was comprised of units ($1.0 million), Flow-through shares ($2.1 million), and a convertible debenture ($3.0 million) which was converted into units in February 2014. The use of proceeds included the drilling of the 1-1-83-25W6 well and for general corporate purposes.

Financial Resources

The Corporation had $3.6 million of working capital as at December 31, 2013.