Canadian Spirit Resources Inc. · TSXV:SPI

Canadian Spirit Resources — Investor Presentation (September 2009)

27 slides from Canadian Spirit Resources's investor presentation, September 2009

  1. Slide 1: Building Shareholder Value in British Columbia's Montney and Gething Plays

    Building Shareholder Value In British Columbia’s Montney and Gething Plays September 2009 TSX VENTURE: SPI

  2. Slide 2: 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 the

  3. Slide 3: Key Investment Considerations

    KEY INVESTMENT CONSIDERATIONS Staying power Large potential resource Exploration and development at no cost Leverage to natural gas price recovery Period of opportunity

  4. Slide 4: Location

    LOCATION FOCUSED ON UNCONVENTIONAL GAS IN BRITISH COLUMBIA

  5. Slide 5: Farrell Creek Stratigraphy

    FARRELL CREEK STRATIGRAPHY Approximate Depth Estimated Gas In Formation Lithology Shell/CSRI Joint Venture To Top (m) Place (Bcf/Section) Moosebar/Gates Shale 400 71 Bluesky Sandstone 650 ? Coal/Dirty Coal/Shale/Silt/Sandstone Gething "Organically Rich Rock Package" 700 281 Cadomin/Nikanassin Sandst

  6. Slide 6: Shell Joint Venture (Shallow Rights)

    SHELL JOINT VENTURE (SHALLOW RIGHTS)

  7. Slide 7: Canbriam Joint Venture (Deep Rights)

    CANBRIAM JOINT VENTURE (DEEP RIGHTS)

  8. Slide 8: Well Financed – Large Land Position

    WELL FINANCED – LARGE LAND POSITION $10.4 million working capital Joint ventures with Shell and Canbriam 54 sections of shallow rights (Gething) Combined with Shell lands - 150 sections (96,000 acres) 44 sections of deep rights (Montney) (28,320 acres) Gething and Montney Formations contain sweet ga

  9. Slide 9: Well Financed – Resource Potential

    WELL FINANCED – RESOURCE POTENTIAL 1.7 tcf discovered and undiscovered resource Shallow Gething/Moosebar/Gates Formations (35 bcf per section - Sproule) Potential of 4 tcf (Gething) Combined with Shell lands (across 150 sections) First sale of Gething gas achieved June 11, 2009 Potential of 2-4 tcf

  10. Slide 10: Well Financed – Capital Funding

    WELL FINANCED – CAPITAL FUNDING No debt Strong cash position $10.4 million/$0.21 share Gross Monthly G&A expense of approximately $150,000 Initial joint venture commitments Shell - $50 million Canbriam - $29 million Joint ventures proceeding at minimal cost to CSRI Share purchase warrants outstandin

  11. Slide 11: Shell Joint Venture Gething Pilot Project

    SHELL JOINT VENTURE GETHING PILOT PROJECT First sale of Gething gas achieved June 11, 2009 1.1 mmcf/d capacity (expandable)

  12. Slide 12: Shell Joint Venture Gething Pilot Project (Cont'd)

    SHELL JOINT VENTURE GETHING PILOT PROJECT (Cont’d)

  13. Slide 13: Shell Joint Venture Gething Pilot Project (Cont'd)

    SHELL JOINT VENTURE GETHING PILOT PROJECT (Cont’d) Up to seven Gething wells are planned to be on production by year end Allow Shell (Operator) to optimize the completion and production techniques that would be used in a commercial production situation Next step: Election by Shell whether to proceed

  14. Slide 14: Shell Joint Venture Development Phase

    SHELL JOINT VENTURE DEVELOPMENT PHASE Shell elects to proceed: 75% WI for Shell - 150 sections (96,000 acres) CSRI would retain 25% WI or 38 net sections (70% of original net ownership) Continued expenditure at minimal cost to CSRI Shell elects not to proceed: CSRI retains 100% of its original 54 se

  15. Slide 15: Canbriam Joint Venture Montney Deep Rights

    CANBRIAM JOINT VENTURE MONTNEY DEEP RIGHTS Canbriam earned a 65% WI with an initial commitment of up to $29 million Option to increase to 70% WI Two wells drilled on east side of Montney lands One well granted “New Pool Discovery” status Planning multi-well program on western Montney lands c-45-I, c

  16. Slide 16: B.C.'s Hottest Gas Play - Montney

    B.C.’S HOTTEST GAS PLAY - MONTNEY November 2008 sale yielded $105.6 million at Farrell Creek (up to $ 14,877/hectare) Talisman plans investment of $7.5 billion over next 10 years if their Montney Pilot Project is successful Construction of 30 mmcf/d gas processing facility (expandable) c-85-I vertic

  17. Slide 17: B.C.'s Hottest Gas Play - Montney

    B.C.’S HOTTEST GAS PLAY - MONTNEY

  18. Slide 18: Share Ownership

    SHARE OWNERSHIP Common Shares 48.4 million common shares outstanding 6.8 million warrants and 2.3 million options outstanding Options represent 5.0% of outstanding shares Major Shareholders Elmag Investments 17.5% Private investment firm Pinetree Capital 11.6% Including joint actors Sprott Asset Man

  19. Slide 19: Corporate Information

    CORPORATE INFORMATION Management TSX Venture Listing Resource Evaluator Donald R. (Don) Gardner Trading Symbol: SPI Sproule Unconventional Limited CEO & Corporate Secretary Corporate Office Bank Phillip D.C. (Phil) Geiger Suite 1950, Ford Tower The Bank of Nova Scotia President & COO 633 6th Avenue

  20. Slide 20: Appendix

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  21. Slide 21: CSRI Management Appendix

    CSRI MANAGEMENT APPENDIX Donald (Don) R. Gardner CEO & Corporate Secretary and Director Bachelor of Commerce, Master of Science (Bus. Admin.) Sr. VP & CFO – Rigel Energy Corp. Executive VP & CFO – Canadian 88 Energy Inc. Senior executive financial experience in the petroleum sector Phillip (Phil) D.

  22. Slide 22: Directors Appendix

    DIRECTORS APPENDIX George W. Watson (Chairman) Bachelor of Science (Engineering), MBA Executive Chairman – CriticalControl Solutions Corp. President & CEO – TransCanada PipeLines VP & CFO – Dome Petroleum Senior executive positions in banking and the petroleum sector Rudolf Cech J.R. Richard Couilla

  23. Slide 23: Farrell Creek Production Potential

    FARRELL CREEK APPENDIX PRODUCTION POTENTIAL MONTNEY GETHING Possible Well Locations Estimated range of 2 to 4 horizontal wells per section (based on 40 sections) 80-160 Estimated range of 4 to 8 vertical wells per section (based on 50 sections) 200-400 Estimated Productivity per Well Based on stabil

  24. Slide 24: Farrell Creek Reserve Potential

    FARRELL CREEK APPENDIX RESERVE POTENTIAL MONTNEY GETHING Gas-in-Place (Comprised of discovered and undiscovered resource) 4 tcf 4 tcf Estimated Potentially Recoverable* 30 to 50% Recovery factor 1.2-2 tcf 20 to 40% Recovery factor 0.8-1.6 tcf Net Potentially Recoverable* 35% WI 0.4-0.7 tcf 25% WI 0.

  25. Slide 25: Potential Gething Resource Values

    POTENTIAL GETHING APPENDIX RESOURCE VALUES $/Share Reserves 1.00 4.00 6.00 8.00 10.00 0.75 3.00 4.50 6.00 7.50 * Net ($/mcf) Present Value 0.50 2.00 3.00 4.00 5.00 0.25 1.00 1.50 2.00 2.50 Resource 20 30 40 50 Potential Recovery Factor ( % ) Assumptions: 4 tcf gas-in-place (comprised of discovered &

  26. Slide 26: Potential Montney Resource Values

    POTENTIAL MONTNEY APPENDIX RESOURCE VALUES $/Share Reserves 2.00 11.20 16.80 22.40 28.00 1.50 8.40 12.60 16.80 21.00 * Net Present ($/mcf) Value 1.00 5.60 8.40 11.20 14.00 0.50 2.80 4.20 5.60 7.00 Resource 20 30 40 50 Potential Recovery Factor ( % ) Assumptions: 4 tcf gas-in-place (comprised of disc

  27. Slide 27: Recent Financings

    RECENT FINANCINGS APPENDIX February 19, 2008 - Units Price: $0.50 Gross Proceeds: $5,610,000 Each unit consists of one common share & ½ of one share purchase warrant Number of Shares Issued: 11,220,000 Number of Warrants Outstanding: 5,570,000 Warrants Exercisable @ $0.80 per share for 2 years ($4.5

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