is pleased to announce that its Board of
Directors has approved a capital budget of up to C$18.0 million for 2010, up significantly from
C$1.2 million in 2009.
The 2010 capital budget will be principally directed toward the development of the Company’s
Montney lands at Farrell Creek, British Columbia as part of an established Montney joint venture
partnership with Canbriam Energy Inc. (“Canbriam”). Commenting on the substantially
increased budget, Don Gardner, CSRI’s Chief Executive Officer stated, “Canadian Spirit is very
pleased with the increased level of activity and commitment in the 2010 Montney program as
proposed by our joint venture partner. Canbriam and CSRI have a substantial capital program
focused on their Montney lands that should achieve a meaningful level of production, revenue
and reserves by the end of 2010”.
Canbriam has advised CSRI that it plans a capital investment of up to C$49.0 million (gross) in
the Farrell Creek Montney program for 2010. CSRI’s share of these capital expenditures in
2010 is expected to range from C$6.0 million to C$14.5 million conditional upon an election by
Canbriam in 2010 to increase its working interest share of the Montney joint venture properties
from 65 percent to 70 percent. In the event Canbriam makes this election, CSRI will retain a 30
percent working interest in the Montney joint venture and will be carried through an additional
C$21.0 million (gross) of capital expenditures. The Company expects to begin funding its share
of the Montney program in mid to late 2010.
The CSRI 2010 budget also includes C$3.5 million (net) that will be utilized to pursue other
opportunities that the Company has identified.
Canbriam’s planned capital program at Farrell Creek includes:
