Highlights from SPI's presentation at the SEPAC Investor Showcase

Don Gardner, CEO of Canadian Spirit Resources Inc., presented at the recent SEPAC Fall Investor Showcase and made some interesting comments. He said that SPI sees 2010 to be the year they've been waiting for. He is quite encouraged with their developments and sees their story developing favorably in the next year. SPI expects that their Montney gas in place (prospective resource) will begin to move into the reserves category and expects production from their west block in 2010. SPI is well on their way to realizing their objective of developing 1 tcf of natural gas.

According to estimates made by Talisman at a Peter's & Co. conference in New York, there could be 300 bcf/section of gas in place in the Montney alone. According to Gardner, this is a "huge number." With SPI's 44 sections and their 35% net interest in the Montney, there is the possiblity of SPI having 4.6 tcf of gas in place in the Montney. Engineers are looking at 40% to 50% ultimate recoveries in the Montney east of Farrell Creek so SPI has a possible 1.8 to 2.3 tcf of recoverable gas.

Other highlights from the conference include 4.2 tcf of gas in place over 150 sections of land that is part of the potential pooled lands with Shell. If Shell elects to proceed, SPI would have a 25% interest equaling 1.1 tcf of gas in place in the Gething.

Just adding up SPI's share of gas in the Montney and Gething equals 5.7 tcf of gas in place. They have not even mentioned the possibility of productive gas from the Doig or Debolt zones which would only make their prospects even brighter. It's easy to see why SPI is so excited about their 2010 prospects.

SPI has financial strength as demonstrated by having almost $10 million dollars and no debt. Coupled with their two joint ventures proceeding at no cost to SPI, they are well leveraged to take advantage of a natural gas price recovery.