Corporate Acquisitions

Canadian Spirit Resources Inc. Announces Third Quarter 2010 Financial Results

Investors Business Daily |

In Brief...

CSRI" or the "Corporation") (SPI)(CSPUF) announces the release of its interim financial results and Management Discussion and Analysis for the three and nine month periods ended September 30, 2010. CSRI is now the operator of the Gething project and will retain 100% working interest in its 58 sections of shallow rights, and obtain the gas facility, the additional wells and the related infrastructure at no additional cost. The Corporation's (net) capital expenditures for the nine months ended September 30, 2010 relate to horizontal drilling and completion activity and the acquisition of additional land in the Montney Formation at Farrell Creek. The following table details the general and administrative expenses of the Corporation for the three and nine months ended September 30, 2010 and 2009: Three months ended Nine months ended September 30, September 30, ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- 2010 2009 2010 2009 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------. The increase in other general administration expenses for the three months ended September 30, 2010 is attributable to an increase in professional fees for joint venture and general corporate matters by the Corporation's legal counsel, and for reviews of quarterly interim financial statements by the Corporation's external auditors. During the nine months ended September 30, 2010, the Corporation capitalized $178,736 (2009: Natural gas capital expenditures for the three and nine months ended September 30, 2010 and 2009 are detailed in the following table: Three months ended Nine months ended September 30, September 30, ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- 2010 2009 2010 2009 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------. Following a successful vertical well test into the lower portion of the Montney Formation at the b-17-I location, the joint venture drilled a horizontal well into the lower Montney at the c-A48-I location. The joint venture has drilled and cased two upper Montney horizontal wells on the western block of the Montney lands at c-18-I/94-B-1 and c-A18-I/94-B-1 and re-entered the b-17-I/94-B-1 well to drill a short horizontal leg in the lower Montney. The joint venture has recently drilled and cased a horizontal well in the upper Montney at the c-45-I/94-B-1 location. Since the Sproule resource report, CSRI has purchased approximately 13 sections of 100% working interest lands and the joint venture has increased its Montney rights from 47 sections to 52 sections (gross). CSRI's share of capital expenditures on the Montney joint venture in 2010 is budgeted to be $14.5 million, of which $4.8 million was expended to September 30, 2010. As per the joint venture agreement, the Corporation is now the operator of the Gething project and will retain 100% working interest in its 58 sections of Shallow Rights, and obtain the gas facility, the additional wells and the related infrastructure at no additional cost.

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