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Message: NR lower Montney results

CALGARY, ALBERTA--(Marketwire - July 22, 2010) - Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSX VENTURE:SPI) (PINK SHEETS:CSPUF) is very pleased to announce preliminary results of a lower Montney Formation horizontal well at the c-A48-I/94-B-1 location in the Farrell Creek area of northeastern British Columbia. The c-A48-I well flowed gas from two stages at an initial production (IP) rate of over 3.5 mmcf/d and stabilized at approximately 2 mmcf/d after a period of seven days. With flow rates of approximately 1 mmcf/d per stage, the results compare favorably with upper Montney horizontal wells in Talisman Energy's (TSX:TLM) commercial Montney play in the area. On a per-stage basis, these results significantly exceeded the Corporation's expectations of what the lower Montney could contribute to the economics of its overall Montney project.

Operational issues are currently preventing the flow-back from the first three fracture stages. Having demonstrated the potential viability of the lower Montney from only two stages at c-A48-I, Canbriam Energy BC Partnership, the operator, is considering further fracture stimulation of the unstimulated horizontal section in addition to possible remediation to access the first three stages. This is the first known horizontal well drilled into the lower Montney in the Farrell Creek area and is expected to add to the total productivity and reserve potential in the Montney Formation. Consistent with current industry practice in the upper Montney, future wells may exploit the lower Montney using ten or more fracture stimulation stages per horizontal well.

Drilling of the first of two horizontal wells into the upper Montney at the c-18-I location is ongoing. Drilling and casing operations of this first well is expected to be completed by the end of July.

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