CALGARY, Alberta, Feb. 28, 2024 (GLOBE NEWSWIRE) -- Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSXV:SPI) (OTCBB:CSPUF) announces the release of its unaudited interim financial statements (the "Financial Statements") and management discussion and analysis (the "MD&A"), each for the three and six month periods ended December 31, 2023.
Second Quarter Financial Results
This news release summarizes certain information contained in the Financial Statements and MD&A and should not be considered a substitute for reading these full disclosure documents which are available on the Corporation's profile on SEDAR+ at www.sedarplus.com.
In accordance with the Corporation's change of year-end from December 31 to June 30 that was approved by the board of directors of the Corporation (the "Board") on August 25, 2023, the Financial Statements and MD&A provide a comparison of the financial performance of the Corporation for the three and six month periods ended December 31, 2023, to the three and six month periods ended December 31, 2022. The Corporation obtained approval for the change of its year-end from the Canada Revenue Agency on November 30, 2023.
Selected Financial Data
The following summarizes certain selected financial data from the Financial Statements for the three and six months ended December 31, 2023:
| Three months ended December 31, | Six months ended December 31, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Natural gas sales (net of royalties) | $ | 119,127 | $ | 248,195 | $ | 119,164 | $ | 273,462 | ||||
| Operating costs | (105,723 | ) | (241,099 | ) | (146,653 | ) | (324,878 | ) | ||||
| Operating netback (loss) | $ | 13,404 | $ | 7,096 | $ | (27,489 | ) | $ | (51,416 | ) | ||
| Other income and gains | 61,656 | 7,223 | 64,806 | 15,342 | ||||||||
| Other expenses | (534,425 | ) | (775,518 | ) | (919,645 | ) | (1,025,278 | ) | ||||
| Net comprehensive loss for the period | $ | (459,365 | ) | $ | (761,199 | ) | $ | (882,328 | ) | $ | (1,061,352 | ) |
The Corporation's gas production for the three and six months ended December 31, 2023 averaged 668 and 334mcf per day respectively (three and six months ended December 31, 2022: 1,084 and 593 mcf per day respectively). The Corporation's wells produced an average of 1,307 mcf per day (net to the Corporation) for 47 days they were on production during November and December 2023.
Review of Strategic Alternatives
The Corporation continues to work with Sayer Energy Advisors to review strategic alternatives and maximize the value of the Corporation's Montney resource base at Farrell Creek and Altares.
For further information regarding the strategic process, please contact CSRI's CEO, Louisa DeCarlo at 403-618-2113, or Tom Pavic at Sayer Energy Advisors at 403-266-6133.
Warrant Exercise
The Corporation also announces that Elmag Investments Inc. ("Elmag"), has exercised the remaining 10,000,000 warrants of the Corporation issued to Elmag on March 15, 2022 to purchase an additional 10,000,000 common shares in the capital of the Corporation (a "Common Share") at a price of $0.08 per Common Share.
Information regarding CSRI is available on SEDAR+ at www.sedarplus.com or the Corporation's website at www.csri.ca.
On behalf of the Board of Directors
CANADIAN SPIRIT RESOURCES INC.
"Louisa DeCarlo"
President and Chief Executive Officer
For further information, please contact:
Canadian Spirit Resources Inc.
Attention: Louisa DeCarlo
Telephone: (403) 618-2113
Email:louisa.decarlo@csri.ca
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
