Canadian Spirit Resources Inc. · TSXV:SPI

Canadian Spirit Resources — Investor Presentation (February 2020)

22 slides from Canadian Spirit Resources's investor presentation, February 2020

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

    l Canadian Spirit Resources Inc. Corporate Presentation February 2020

  2. Slide 2: Investment Considerations

    INVESTMENT CONSIDERATIONS  CSRI is a closely held public company that provides a significant investment value option either as a stand-alone company or combined with another entity to supply natural gas to the approved LNG projects on the Pacific West Coast and the expanding markets in North Americ

  3. Slide 3: Farrell Creek/Altares/Attachie Location

    FARRELL CREEK/ALTARES/ATTACHIE 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 (Pacific 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 B

  5. Slide 5: The Resource & Reserves

    THE RESOURCE & RESERVES  GLJ - Company Resource Assessment as at 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

  6. Slide 6: Farrell Creek/Altares/Attachie Core Area

    FARRELL CREEK/ALTARES/ATTACHIE CORE AREA  Strategically located in the Montney resource fairway ALTARES  55% net working interest in 76.2 ATTACHIE gross sections (48,742 acres) Progress Energy 320 mmcf/d gas plant  9.0 Tcf total net Petroleum Initially in Place (TPIIP)  CSRI lands contiguous wit

  7. Slide 7: West Block

    WEST BLOCK  JV wells and Talisman (Petronas) wells to north drilled and frac’d in 2010-2011 using 8-12 stage frac’s  CSRI 100% WI c-81-H horizontal d-40-I 7.2 Bcf EUR well, drilled in Q3 2014; 39 stage frac completion dependent on CSRI Gas Sales natural gas prices. Earned four line 60mmcf/d JV Pla

  8. Slide 8: East Block

    EAST BLOCK ARC ATTACHIE  Adjacent to ARC Resources Attachie liquids-rich production pilot with liquids averaging 265 bbls/MMcf JV 1-31 Progress/Sasol 13-28  Petronas 13-28 vertical well (2014) with three zones frac’d flowed at 3.4 MMcf/d. Two hz well locations Crew 1-27 Hz licensed, pipeline tie i

  9. Slide 9: West Attachie

    West Attachie July 26, 2017 ARC Land Sale purchase $77 • ARC Resources new growth area in million ($5,558/acre) liquids rich oil / wet gas window • July 26, 2017 land sale: ARC paid $77.0 million for 5,542 ha (13,855 acres) or $13,894/ha ($5,558/acre) • Seven well pad Q4 2019 production at a restric

  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 Doig and Montney encountered  Extreme borehole pressure conditions required well to be abandoned  c-81-

  11. Slide 11: Type Curve & Economics

    TYPE CURVE & ECONOMICS  Analog Canbriam/CSRI d-40-I well: on 6000 Type Well production Oct. 2011 from U. Montney (3.7 mmcf/d)  Adjacent recent third party wells with Improved Completion 4500 (5.5 mmcf/d) significantly improved completion Production Rate, mcf/d Analogy techniques have resulted in h

  12. Slide 12: Montney – Frac Water Source Pipeline

    MONTNEY – FRAC WATER SOURCE PIPELINE  CSRI owns a 25% WI (Pacific 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

  13. Slide 13: Westcoast LNG Projects - Now a Reality

    WESTCOAST LNG PROJECTS-NOW A REALITY Shell Canada On March 16, 2019 Shell indicated a high likelihood that LNG Canada will proceed with the second LNG train at Kitimat before the first train has been completed. Faceplate of two trains is 4.3 bcf/day. LNG partners currently produce 1.4 bcf/day and wi

  14. Slide 14: West Coast LNG Projects – Now a Reality (2)

    WEST COAST LNG PROJECTS – NOW A REALITY(2) Capacity Proposed LNG Projects (Bcf/d) LNG Canada: Shell, Petronas, Kogas, ~1.9-4.3 PetroChina, Mitsubishi; FID October 2, 2018, TCPL Coastal GasLink pipeline approved for construction. In service date 2023 Kitimat LNG: Chevron, Woodside; NEB ~2.7 applicati

  15. Slide 15: Westcoast LNG Projects - Now a Reality (3)

    WESTCOAST LNG PROJECTS-NOW A REALITY(3) LNG Demand: 7 bcf/d Current NEBC Production : 6 bcf/d As current NEBC production is supplying the demand of existing on shore markets, the onset of the LNG demand will require significant consolidation of reserves and new drilling. CSRI IS UNIQUELY POSITIONED

  16. Slide 16: Financial Position

    FINANCIAL POSITION  No debt  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 government royalty credits available to offset against future royalties

  17. Slide 17: Share Information

    SHARE INFORMATION TSX-Venture Trading Symbol SPI Shares Outstanding – Basic (MM) 196.2 Market Capitalization @ $0.05/share (MM) ~$10 Management/Director Ownership – Basic 7% Major Shareholder: Elmag Investments Inc. 47 % 17

  18. Slide 18: 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 of natural gas supply for the approved LNG projects on the Pacific West Coast and the expanding North American gas markets either as a stan

  19. Slide 19: 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 Carrie Yuill #1200, 707 - 7th Ave. S.W. ATB Corporate Financial Services VP Finance & CFO Calgary, AB T2P 3H6 Pa

  20. Slide 20: Appendix

    APPENDIX Appendix 20

  21. Slide 21: Cautionary Statement

    CAUTIONARY STATEMENT Certain statements included in this presentation constitute forward‐looking statements or forward‐looking information under securities legislation. Such forward‐looking statements or information are provided for the purpose of providing information about management's current exp

  22. Slide 22: 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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