Welcome To The Canadian Spirit Resources Inc. HUB On AGORACOM
Exploration and development of opportunities in the unconventional gas sector - JV - Shell Canada Energy.
Message: NR Shell backs out..is this a bad sign or an opportunity for CSRI, I say a plus
they pick up land....a gas facility...we know the shale is good...look at Talisman and Cambrea
CALGARY, ALBERTA--(Marketwire - June 18, 2010) - Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSX VENTURE:SPI) (PINK SHEETS:CSPUF) announces that Shell Canada Energy ("Shell) has elected not to proceed with pooling of the respective Shell and CSRI lands at Farrell Creek, British Columbia and will transfer operatorship and certain assets to CSRI pursuant to the terms of the Joint Venture Agreement.
As a result of the Shell election, CSRI will retain a 100% working interest in approximately 55 sections (35,200 acres) of rights from surface to the base of the Cadomin/Nikanassin Formation ("CSRI lands") which Sproule Unconventional Limited has estimated holds 1.8 tcf of discovered and undiscovered natural gas resource initially in place. CSRI also holds a right-of-first-refusal on approximately 95 sections (60,800 acres) of rights acquired by Shell in 2008 ("Shell lands"). These Shell lands are contiguous to the CSRI lands and if combined, would represent 150 sections (96,000 acres) of rights from surface to base of the Cadomin/Nikanassin Formation.
In addition, CSRI will assume at no cost, ownership of the Farrell Creek Gething pilot project developed by Shell since September 2008. These assets include an expandable 1.1 million cubic feet per day pilot gas facility; a pipeline capable of up to 60 mmcf/d connecting the pilot facility to the Spectra Energy sales pipeline; plus five additional Gething wells drilled by Shell and infrastructure related to the project.
CSRI is considering a number of options regarding the use of existing infrastructure and the timing and funding of future evaluation work on its lands in the Farrell Creek area. The Corporation will minimize expenditures on the Gething pilot project until a development program and funding strategy have been determined. The Corporation believes that while the development of the Gething Formation is sensitive to natural gas prices, the opportunity to apply an enhanced completion technique to potentially over 150 contiguous sections is a unique and valuable proposition.
Commenting on Shell's election, Don Gardner, Chief Executive Officer of CSRI, stated that "the Corporation wishes to acknowledge Shell's contribution to the joint venture's knowledge of the Gething Formation which will assist in future development efforts. Our staff has enjoyed the opportunity to work closely with an industry leader such as Shell".
Regarding current activity targeting the Montney Formation at Farrell Creek, the Corporation is also pleased to report that the c-18-I horizontal well in the upper portion of the Montney Formation has spud and that preparation for the fracture stimulation of the c-A48-I horizontal well in the lower portion of the Montney Formation has begun and will be concluded during the next two weeks. These activities, operated by Canbriam Energy BC Partnership, represent the continuation of the C$49 million capital program planned for 2010 by the Montney joint venture.
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 Corporation is to develop 1 trillion cubic feet of natural gas from resource plays in western Canada.
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