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Exploration and development of opportunities in the unconventional gas sector - JV - Shell Canada Energy.

Message: NR Canbriam results

NR Canbriam results

posted on Mar 05, 2010 11:46AM
Canadian Spirit Resources Inc.

Mar 04, 2010 11:00 ET

Canadian Spirit Resources Inc. Announces Drilling of Horizontal Montney Well Concluded

CALGARY, ALBERTA--(Marketwire - March 4, 2010) - Canadian Spirit Resources Inc. ("CSRI" or the "Company") (TSX VENTURE:SPI) (PINK SHEETS:CSPUF) is pleased to announce that Canbriam Energy Inc. ("Canbriam"), operator of the Company's Montney joint venture, has drilled and cased the c-A48-I/94-B-1 horizontal well (the "c-A48-I well") in the lower portion of the Montney Formation at Farrell Creek, British Columbia. This well will be stimulated using multi-stage fracture technology after the removal of spring road bans.

The c-A48-I well builds on the successful test of the lower Montney Formation at the b-17-I well (see News Release dated December 23, 2009) with the objective of determining if the lower portion of the Montney Formation can contribute economically to the total productivity of the Montney at Farrell Creek.

Talisman Energy Inc. has announced that they have begun commercial development of their Montney shale play located immediately north of CSRI's Montney lands and expects to exit 2010 producing 40-60 mmcf/d of natural gas.

In addition to the completion of the c-A48-I well, Canbriam has indicated they plan to drill the c-18-I horizontal well targeting the Montney Formation commencing in late June. The c-18-I well is expected to be followed by additional drilling locations targeting the Montney Formation.

Engineering of a natural gas compressor/dehydration facility has begun with a planned capacity of up to 20 mmcf/d with a target completion date and commercial operation in the fourth quarter of 2010.

The Company's cash position currently stands at C$13.1 million with no debt. The Company continues to be carried for capital expenditures in both the Gething and Montney projects but expects to begin funding its working interest share of the Montney program in mid to late 2010.

CSRI is a natural resources company focusing on the identification and development of opportunities in the unconventional gas sector of the energy industry. The mission of the Company is to develop 1 trillion cubic feet of natural gas from unconventional resource plays in western Canada. The Company is currently evaluating the productive capability of both its shallow Gething play and its deeper Montney play through joint ventures with two well-capitalized partners. Both of these plays are located on the Company's principal resource property at Farrell Creek, British Columbia.

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