Canadian Spirit Resources Inc. · TSXV:SPI
Canadian Spirit Resources — Investor Presentation (July 2018)
21 slides from Canadian Spirit Resources's investor presentation, July 2018
Slide 1: Canadian Spirit Resources Inc. Corporate Presentation
l Canadian Spirit Resources Inc. Corporate Presentation July 2018
Slide 2: Investment Considerations
INVESTMENT CONSIDERATIONS ▪ CSRI represents a significant option value either as a stand alone company or combined with another entity to supply natural gas to the expanding North American markets as well as the proposed LNG projects on the Pacific West Coast ▪ Montney natural gas resource focused i
Slide 3: Farrell Creek/Altares/Attachie Location
FARRELL CREEK/ALTARES/ATTACHIE LOCATION CSRI lands have all season access 3
Slide 4: The Lands
THE LANDS ▪ CSRI lands consist of 100% working interest and joint venture (Canbriam Energy Inc.) Montney mineral rights lands ▪ At a BC Crown land sale held on June 13, 2018, LandSolutions GP Inc. (a confidential land broker) purchased a 4,562 acre land block ~18 miles north of CSRI’s East Block Att
Slide 5: The Resource & Reserves
THE RESOURCE & RESERVES ▪ GLJ - Company Resource Assessment, December 31, 2016 Natural Gas Resource Categories Resource Net (Bcf) Total Petroleum Initially in Place (TPIIP) 9,044 • (Total Shale Gas Initially in Place) Discovered Petroleum Initially in Place (DPIIP) 4,029 Undiscovered Petroleum Initi
Slide 6: Farrell Creek/Altares/Attachie Core Area
FARRELL CREEK/ALTARES/ATTACHIE CORE AREA ▪ Strategically located in the Montney resource fairway ▪ 55% net working interest in 76.2 gross sections (48,742 acres) ▪ 9.0 Tcf total net Petroleum Initially in Place (TPIIP) ▪ CSRI lands contiguous with dominant Montney players (Progress/Sasol, Canbriam E
Slide 7: West Block
WEST BLOCK ▪ CSRI 100% WI c-81-H horizontal well, drilled in Q3 2014; timing of completion dependent on natural gas prices. Earned four 100% D-40-I working interest sections 7.2 Bcf EUR ▪ CSRI 100% WI c-69-H vertical test well drilled in Q1 2016. Extended tenure on 8.35 net sections for 10 c-81-H ye
Slide 8: East Block
EAST BLOCK ▪ Adjacent to ARC Resources Attachie liquids-rich production pilot with liquids averaging 340 bbls/MMcf ▪ Progress/Sasol 13-28 vertical well with three stage frac flowed at 3.3 MMcf/d. Seven hz well locations licensed, pipeline tie in approved ▪ JV 01-31 vertical well tested at 425 Mcf/d
Slide 9: West Attachie
West Attachie July 26, 2017 Land Sale $77 million • ARC Resources new growth area in liquids rich oil / wet gas window • Two wells produced a combined 220 13-14 & B13-26 have produced a combined 220 Mbbls of condensate in first 225 days. Total Mbbls in first 225 days of production production 370 Mbo
Slide 10: Operations & Production
OPERATIONS & PRODUCTION Drilling: ▪ c-69-H/94-B-1 vertical stratigraphic test well cased and rig released March 2016 ▪ 2,762 m well extended tenure on 8.35 sections for 10 years ▪ Over pressured Montney encountered ▪ Extreme borehole pressure conditions required well to be abandoned ▪ c-81-H/94-B-1
Slide 11: Type Curve & Economics
TYPE CURVE & ECONOMICS ▪ Analog Canbriam/CSRI d-40-I well: Rig 6000 Type Well (3.7 mmcf/d) released April 2011, on production Oct Improved Completion 2011 from Upper Montney 4500 (5.5 mmcf/d) Production Rate, mcf/d ▪ Adjacent third party wells with Analogy significantly improved completion 3000 tech
Slide 12: Montney – Frac Water Source Pipeline
MONTNEY – FRAC WATER SOURCE PIPELINE ▪ CSRI owns a 25% WI (Canbriam 75% WI) in a $21.3 million water pipeline that extends 25 km from the Williston Lake Reservoir to the Montney JV gas plant ▪ Access to water is becoming the greatest industry challenge ▪ BC Government licence allows CSRI up to 10,00
Slide 13: West Coast LNG Projects - Closer to Reality
WEST COAST LNG PROJECTS - CLOSER TO REALITY Capacity Proposed LNG Projects (Bcf/d) LNG Canada: Shell, Kogas, PetroChina, ~3.1 Mitsubishi; FID expected in H2 2018, contracts have been awarded for site work and TCPL Coastal Interlink pipeline Woodfibre LNG approved. Construction ~0.3 to commence 2018
Slide 14: Financial Position
FINANCIAL POSITION ▪ Cash on hand: $1.2 million ▪ No debt ▪ Net burn rate < $85 k per month ▪ Cash secured $1.75 million LMR abandonment deposit placed with British Columbia Oil & Gas Commission; recoverable upon achieving production operator status in BC ▪ $3.4 million of British Columbia governmen
Slide 15: Recent Financings
RECENT FINANCINGS ▪ Recent financings: ▪ December 2016 - Units ▪ Price: $0.12, via Private Placement ▪ Total Gross Proceeds: $0.5 million ▪ Number of Shares Issued: 4,166,668 ▪ Each Unit consisted of one common share & ½ of one share purchase warrant with a term of one year at $0.12 ▪ June 2017 – Ex
Slide 16: Share Information
SHARE INFORMATION TSX-Venture Trading Symbol SPI Shares Outstanding – Basic (MM) 177.5 Market Capitalization @$0.15/share (MM) ~$26.6 Management/Director Ownership – Basic 6.9 % Major Shareholder: Elmag Investments Inc. 44.0 % 16
Slide 17: Investment Summary
INVESTMENT SUMMARY ▪ The Montney Formation is one of the leading natural gas shale plays in North America ▪ CSRI’s Montney assets represent a significant source natural gas supply into the expanding North American gas markets either as a stand alone company or combined with another entity ▪ CSRI’s M
Slide 18: Corporate Information
CORPORATE INFORMATION Management TSX Venture Listing Reserve Evaluator J. Richard (Rich) Couillard Trading Symbol: SPI GLJ Petroleum Consultants Ltd. President & CEO Corporate Office Bank Dean G. Hill First Alberta Place ATB Corporate Financial Services VP Finance & CFO #1520, 777 - 8th Ave. S.W. Pa
Slide 19: Appendix
APPENDIX Appendix 19
Slide 20: Disclosure Statement
DISCLOSURE STATEMENT The corporate information contained in this presentation contains forward- looking forecast information. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonably accurate by Canadian Spirit Resources Inc. (“CSRI”) at th
Slide 21: Definitions of Oil & Gas Resources and Reserves
DEFINITIONS OF OIL & GAS RESOURCES AND RESERVES Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on the analysis of drilling, geological, geophysical and engineering data; the u
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