Canadian Spirit Resources Inc. – GuruFocus.com
CALGARY, Alta., Aug. 25, 2022 (GLOBE NEWSWIRE) — Canadian Spirit Resources Inc. (“CSRI” or the “Company”) (TSXV: SPI, Financial) (OTCBB:CSPUF) announces the publication of its interim financial results and its management report (“Management report”), for the three- and six-month periods ended June 30, 2022.
Second quarter 2022
This press release summarizes the information contained in the unaudited interim financial statements and MD&A for the three and six month periods ended June 30, 2022 and should not be considered a substitute for reading these disclosure documents. complete information which is available on SEDAR at www.sedar.com. The following is a summary of selected financial data for the three and six months ended June 30, 2022:
|(all amounts are presented in Canadian dollars, unless otherwise indicated)|
ended on June 30,
ended on June 30,
|Natural gas sales||$||–||$||–||$||–||$||–|
|Operating payback (costs)||(273,760||)||(105,687||)||(315 210||)||(141 159||)|
|Net operating income||$||(273,760||)||$||(105,687||)||$||(315 210||)||$||(141 159||)|
|Other income and earnings||21,250||44||151,925||87|
|Overall net loss for the period||$||(542,577||)||$||(391,120||)||$||(764,600||)||$||(625,654||)|
The Company’s loss and comprehensive loss for the six months ended June 30, 2022 was $764,600 (June 30, 2021 – $625,654). Compared to the six months ended June 30, 2021, there is an increase in loss of $138,946 resulting mainly from the following:
- Increase in operating costs from $174,051 to $315,210 (June 30, 2021 – $141,159) resulting from the return to service of the Farrell Creek gas plant and associated facilities required to produce the Montney wells of the existing joint venture;
- Increase in professional fees from $53,225 to $132,471 (2021 – $79,246) mainly due to higher audit costs;
- Investor relations and filing fees, and insurance fees increase from $18,108 to $64,727 (2021 – $46,619);
- Stock-based compensation of $71,029 (2021 – $41,029) increase of $30,000 due to timing of vesting of stock options.
These cost increases were offset by the gain on sale of property, plant and equipment for proceeds of $147,750 on fully depreciated idle equipment at Farrell Creek Gething.
|Like a||Like a|
|June 30th,||The 31st of December,|
|Working capital||1,015,231||909 492|
|Number of common shares outstanding||268 177 583||248 177 583|
The Company and its joint venture partner are pleased to announce the completion of fieldwork required to reactivate the Farrell Creek natural gas processing facility and associated Montney wells. The Company anticipates final start-up of the field in late August or early September of this year, pending acceptable natural gas prices.
GRANT OF STOCK OPTIONS
The Company has granted certain directors and executive officers of the Company incentive stock options allowing them to purchase up to an aggregate of 2,600,000 common shares in the capital of the Company in accordance with the terms of the Company’s stock option plan. Stock options vest one quarter immediately, with one quarter each at 6 months, 12 months and 18 months after the effective date of grant. All stock options have a term of five years and are exercisable at a price of $0.105 per share. The grant of options will result in an aggregate total of 8,750,000 issued and outstanding stock options at a weighted average exercise price of $0.09 per stock option.
CSRI is a natural resources company focused on identifying and developing opportunities in the unconventional natural gas sector of the energy industry.
On behalf of the Board of Directors
CANADIAN SPIRIT RESOURCES INC.
President and CEO
For more information, please contact: Canadian Spirit Resources Inc.
Telephone (403) 618-2113
Louisa DeCarlo ([email protected])
avant-garde Information Precautionary Statement
This press release contains forward-looking statements. In particular, this news release contains statements regarding the Company’s planned reactivation of the Farrell Creek natural gas processing facility and associated Montney wells. The forward-looking statements contained in this press release are based on certain expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which forward-looking statements are based are reasonable, undue reliance should not be placed on forward-looking statements as the Company cannot guarantee that they will prove to be accurate. Because forward-looking statements address future events and conditions, they, by their very nature, involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, operational risks and risks associated with natural gas price volatility. Forward-looking statements are based on estimates and opinions of the Company’s management at the time the statements are made. The Company may, if deemed necessary in the circumstances, update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, but the Company undertakes no obligation to update update or revise forward-looking statements, except as required by applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS ITS TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE RELEVANCE OR ACCURACY OF THIS RELEASE. HURRY