CALGARY, ALBERTA -- (Marketwired) -- 04/28/16 -- Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSX VENTURE: SPI)(OTCBB: CSPUF) announces the release of its financial results for the three and twelve months ended December 31, 2015 including the filing of its 2015 annual audited Financial Statements, Management Discussion and Analysis ("MD&A"), and Forms 51-101F1, F2 and F3.
This news release summarizes information contained in the audited Financial Statements and MD&A for the year ended December 31, 2015 and should not be considered a substitute for reading these full disclosure documents, and the Forms 51-101F1, F2 and F3, which are available on SEDAR at www.sedar.com or the Corporation's website at www.csri.ca.
CSRI is a natural resources company focusing on the identification and development of opportunities in the unconventional natural gas sector of the energy industry.
SELECTED FINANCIAL DATA
(all amounts are presented in Canadian dollars, unless otherwise indicated)
For the three month For the twelve month
periods ended December periods ended December
31, 31,
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2015 2014 2015 2014
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Average sales
volumes of natural
gas (Mcf/d) 575 814 721 931
Average sales price
of natural gas (per
Mcf) $ 1.06 $ 3.17 $ 1.76 $ 4.11
Natural gas sales,
before royalties $ 54,340 $ 235,660 $ 471,622 $ 1,410,060
Operating netbacks,
after royalty
credits applied $ (20,143) $ 155,027 $ 28,495 $ 896,328
Net cash flows from
operating
activities $ (213,447) $ 93,835 $ (829,324) $ (354,010)
Net loss and
comprehensive loss $ (376,069) $ (441,846) $ (2,247,485) $ (3,463,732)
Loss per share,
basic & diluted $ (0.01) $ - $ (0.02) $ (0.03)
Gross capital
expenditures $ 228,411 $ 419,192 $ 797,866 $ 10,059,970
As at December 31,
--------------------------
2015 2014
----------------------------------------------------------------------------
Net working capital $ 3,142,299 $ 4,256,090
Total assets $ 73,618,363 $ 73,538,821
Total debt $ - $ -
Shareholders'
capital $ 70,886,144 $ 71,044,335
Number of common
shares outstanding 141,367,192 128,867,192
HIGHLIGHTS
-- CSRI ended the year with a strong working capital position and no debt.
-- Despite difficult equity markets, in December 2015 and January 2016 the
Corporation raised a total of $3.5 million of equity capital to drill,
in the first quarter 2016, a 100% working interest vertical
stratigraphic test well at c-69-H/94-B-1 in West Farrell Creek for land
retention and resource delineation, and for general corporate purposes.
-- The c-69-H/94-B-1 well was successfully drilled and cased, and was rig
released on March 6, 2016 at a final total depth of 2,762 metres. The
tenure on 8.35 sections of lands, CSRI (8 sections at 100%) and joint
venture (1 section at 35%), has been extended for an additional 10
years. While drilling through the Doig and Montney formations, extremely
high pressures were encountered. Although validation through further
testing will be required, the presence of these higher pressures could
result in a larger natural gas resource in place than currently
recognized on CSRI's 100% working interest lands. The proximity of this
land base to the Spectra Energy pipeline and existing, expandable
infrastructure has the potential to match some of the most prolific
natural gas production in the region.
-- On March 31, 2016, the Corporation and its joint venture partner shut in
their natural gas production at Farrell Creek. The continued
deterioration in North American natural gas prices accompanied by the
further discounted price experienced by producers in northeastern
British Columbia producing into the Spectra Energy pipeline (in March
2016, natural gas spot prices at Station 2 averaged $0.89 per Mcf) has
resulted in a negative netback on the joint venture natural gas
production at Farrell Creek. The natural gas processing facility and
associated wells will be reactivated once natural gas prices return to a
profitable situation.
-- Management and the Board of Directors of CSRI are continuing to focus on
and pursue strategic alternatives for the Corporation. These include but
are not limited to considering alternative financing methods and meeting
with potential acquirers or merger partners.
Information regarding CSRI is available on SEDAR at www.sedar.com or the Corporation's website at www.csri.ca.
The corporate information contained in this news release may contain forward-looking forecast information. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonably accurate by CSRI at the time of preparation, may prove to be incorrect. The actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. Consequently there is no representation by CSRI that actual results achieved during the forecast period will be the same in whole or in part as those forecast.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
Contacts:
Canadian Spirit Resources Inc.
(403) 539-500
Rich Couillard (rich.couillard@csri.ca)
