Canadian Spirit Resources Inc. · TSXV:SPI

Canadian Spirit Resources — Investor Presentation (December 2017)

21 slides from Canadian Spirit Resources's investor presentation, December 2017

  1. Slide 1: Canadian Spirit Resources Inc. Corporate Presentation

    l Canadian Spirit Resources Inc. Corporate Presentation December 2017 TIMED FOR GROWTH

  2. 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

  3. Slide 3: Farrell Creek/Altares Location

    FARRELL CREEK/ALTARES LOCATION CSRI lands have all season access 3

  4. Slide 4: The Lands

    THE LANDS § CSRI lands consist of 100% working interest and joint venture (Canbriam Energy Inc.) lands § Pengrowth Energy’s April 2017 sale of 20,633 acres (32.6 sections) ~30 km north of CSRI East Block Attachie lands to ConocoPhillips, for $92.0 million, valued the land at $4,459 per acre § ARC

  5. 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 In

  6. Slide 6: Farrell Creek/Altares Core Area

    FARRELL CREEK/ALTARES 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 Energy

  7. 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 price increase. Earned four D-­‐40-­‐I 100% working interest sections 6.3 Bcf EUR § CSRI 100% WI c-­‐69-­‐H vertical test well drilled in Q1 2016. Extended tenure on 8.35 net sec

  8. 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 1-­‐31 vertical well tested at 42

  9. 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 have produced a combined 13-­‐14 & B13-­‐26 have produced a combined 175 mbbls of condensate in first 160 days. Average 340 bbls condensate/mcf. 275 Mboe since Q2 2017 •

  10. 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 § Borehole issues requires well to be abandoned § c-­‐81-­‐H/94-­‐B-­‐1

  11. Slide 11: Type Curve & Economics

    TYPE CURVE & ECONOMICS § Analog Canbriam/CSRI d-­‐40-­‐I well: Rig 6000 Type Well released April 2011, on production Oct (3.7 mmcf/d) 2011 from Upper Montney Improved Completion 4500 (5.5 mmcf/d) Production Rate, mcf/d § Adjacent third party wells (Progress/Sasol, Analogy Pengrowth, ARC, Crew) wit

  12. 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

  13. 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, PetroChina, ~3.1 Mitsubishi, Kogas. FID in 2018, rebidding of lead contractor and related project costs underway Woodfibre LNG approved. Construction ~0.3 to commence 2017 Seven Generations & Stee

  14. Slide 14: Financial Position

    FINANCIAL POSITION § Cash on hand: $1.9 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 gove

  15. 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

  16. Slide 16: Share Information

    SHARE INFORMATION TSX-­‐Venture Trading Symbol SPI Shares Outstanding – Basic (MM) 176.2 Market Capitalization @$0.15/share (MM) ~$26.4 Management/Director Ownership – Basic 6.9 % Major Shareholder: Elmag Investments Inc. 41.1 % 16

  17. 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 § Based

  18. 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

  19. Slide 19: Appendix

    APPENDIX Appendix 19

  20. 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

  21. 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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