Sproule releases estimate of gas in Montney Formation

Canadian Spirit Resources Inc. (SPI) announced today that Sproule has estimated the total gross discovered and undiscovered resource in the Montney Formation to be 3.6 tcf on SPI’s lands at Farrell Creek. SPI has a 35% net interest in the Montney equaling 1.26 tcf. With a recovery rate of 20% and $0.49/mcf value, SPI’s net asset value is $3.55/share. With a 30% recovery rate, SPI’s net asset value is $4.80/share. Clearly, SPI is an undervalued company with a lot of upside potential that will be realized once the market sentiment for E&P natural gas companies improves.