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CALGARY, ALBERTA--(Marketwired - Mar 21, 2016) - Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSX VENTURE:SPI) (OTCBB:CSPUF) and its joint venture partner, Canbriam Energy Inc., have elected to shut in their natural gas production at Farrell Creek effective March 31, 2016.
The continued deterioration in North American natural gas prices accompanied by the further discounted price experienced by producers in northeastern British Columbia producing into the Spectra main pipeline has resulted in a negative netback on joint venture natural gas production at Farrell Creek.
With no clear indication of a near term return to a positive natural gas pricing environment, this temporary shut in of production is viewed as a prudent business decision. The natural gas processing facility and associated wells will be reactivated once natural gas prices return to a profitable situation.
CSRI's net production over the past 60 days at Farrell Creek has averaged 625 Mcf/day.
In commenting on the shut in of production, Mr. Richard Couillard, President and Chief Executive Officer of CSRI stated: "This is an easy business decision. It makes no economic sense to produce our natural gas at a loss and at the same time deplete our reserves."
CSRI is a natural resource company focusing on the identification and development of opportunities in the unconventional natural gas sector of the energy industry.
On behalf of the Board of Directors
CANADIAN SPIRIT RESOURCES INC.
Richard Couillard, President & Chief Executive Officer
The corporate information contained in this news release may contain forward-looking forecast information. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonably accurate by CSRI at the time of preparation, may prove to be incorrect. The actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. Consequently there is no representation by CSRI that actual results achieved during the forecast period will be the same in whole or in part as those forecast.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE