Canadian Spirit Resources Inc. · TSXV:SPI

Canadian Spirit Resources — Investor Presentation (August 2016)

20 slides from Canadian Spirit Resources's investor presentation, August 2016

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

    l Canadian Spirit Resources Inc. Corporate Presentation August 2016 TIMED FOR GROWTH

  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 th

  3. Slide 3: Investment Considerations

    INVESTMENT CONSIDERATIONS  CSRI represents a significant option value to supply natural gas to the proposed LNG projects on Canada’s West Coast, either as a stand alone company or combined with another entity  Montney natural gas resource focused in one core area at Farrell Creek/Altares  10.5 Tc

  4. Slide 4: Farrell Creek/Altares Location

    FARRELL CREEK/ALTARES LOCATION CSRI lands have all season access Strategically located on pipeline infrastructure that will service LNG facilities 4

  5. Slide 5: The Lands

    THE LANDS  CSRI lands consist of 100% working interest and joint venture (Canbriam Energy Inc.) lands SECTIONS NET AVERAGE GROSS NET ACRES CSRI WI (%) CSRI 100% WI 25.4 25.4 16,248 100 JV (Canbriam) 49.9 15.3 9,796 31 TOTAL 100% & JV 75.3 40.7 26,044 54  JV partner (Canbriam) is amenable to a land

  6. Slide 6: The Resource & Reserves

    THE RESOURCE & RESERVES  GLJ ‐ Company Resource Assessment, February 29, 2012* Natural Gas Resource Categories Resource (Bcf) Total Petroleum Initially in Place (TPIIP) 5,550 • (Total Shale Gas Initially in Place) Discovered Petroleum Initially in Place (DPIIP) 1,928 Undiscovered Petroleum Initiall

  7. Slide 7: Farrell Creek/Altares Core Area

    FARRELL CREEK/ALTARES CORE AREA  Strategically located in Montney resource fairway  Interest in 75.3 gross sections (48,178 acres)  5.6 Tcf total Petroleum Initially in Place (TPIIP)  CSRI lands contiguous with dominant Montney players (Petronas/Petronas, Crew Energy CSRI c‐69‐H Inc., Arc Resour

  8. Slide 8: West Block

    WEST BLOCK  CSRI 100% WI c‐81‐H horizontal well, drilled in July 2014; timing of completion dependent on natural gas price increase. Earned four 100% working interest sections  c‐69‐H vertical test well drilled in Q1 2016. Extended tenure on 8.35 sections for 10 years. Extreme bottom hole pressure

  9. Slide 9: East Block

    EAST BLOCK  Adjacent to Arc Resources Attachie liquids‐rich production pilot  188 bbls/MMcf NGLs & free condensate  Progress 13‐28 vertical well with three stage frac flowed at 3.3 MMcf/d. Pipeline tie in approved  JV 1‐31 vertical well tested at 425 Mcf/d from a single zone frac with highly ove

  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  Extremely high bottom hole pressures encountered while drilling. If validated through current testing, a significant inc

  11. 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, frac’d Sept 2011, on Improved Completion production Oct 2011 from Upper 4500 (5.5 mmcf/d) Production Rate, mcf/d Montney Analogy  Adjacent third party wells 3000 (Petronas/Progress, Pengr

  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  Secure access to water  Government licence allows up to 10,000 cubic meters of water per day (gross) to be

  13. Slide 13: West Coast LNG Projects - Closer to Reality

    WEST COAST LNG PROJECTS ‐ CLOSER TO REALITY Capacity Proposed LNG Projects (Bcf/d) Pacific Northwest LNG : Petronas, ~2.6 Japex, Mitsubishi, Sinopec, Indian National Oil Co., PetroBrunei. FID anticipated H2 2016, First delivery 2021‐22 LNG Canada : Shell, PetroChina, ~3.2 Mitsubishi, Kogas. FID defe

  14. Slide 14: Financial Position

    FINANCIAL POSITION  Cash on hand: $1.2 million, no debt  Net burn rate approximately $100k per month  Approximately $100 million of tax pools available  Recent financings:  December 2015 ‐ Flow‐Through Shares (CEE) + January 2016 ‐ Units  Price: $0.20, via Private Placement  Total Gross Proce

  15. Slide 15: Share Information

    SHARE INFORMATION TSX‐Venture Trading Symbol SPI Shares Outstanding – Basic (MM) 152.6 Market Capitalization @$0.15/share (MM) ~$23 @$0.20/share (MM) ~$31 Management/Director Ownership – Basic 6.4 % Major Shareholder: Elmag Investments Inc. 36.5 % 15

  16. Slide 16: Investment Summary

    INVESTMENT SUMMARY  The Montney is one of the leading shale natural gas plays in North America that will tap into new potential LNG export markets  will require a significant natural gas reserve base  CSRI’s Montney assets represent a significant source for long term LNG natural gas supply, eithe

  17. Slide 17: 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

  18. Slide 18: Appendix

    APPENDIX 18

  19. Slide 19: 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

  20. Slide 20: Lower Cretaceous Resource Play

    LOWER CRETACEOUS RESOURCE PLAY  100% WI – 35,856 net acres to base of Jurassic Nikanassin Formation  Lower Cretaceous Gething, Moosebar and Gates tight sand and shale resource potential  100% WI  1.1 MMcf/d Pilot Gas Facility, scalable to 60 MMcf/d  Pipeline, 14 wells and Gathering System  Met

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