Dundee Securities issued an updated research report on Canadian Spirit Resources Inc. (SPI) today (click here to view). SPI has reached the milestone of first production and is now producing natural gas from three Montney horizontal wells. SPI joins Canbriam and Talisman Energy as the only Montney natural gas producers.
SPI expects to complete two previously drilled upper Montney wells, one in February and one after spring break up. There are also plans to drill an additional Montney well by the end of the first quarter. The company is also expecting to receive its reserve report by the end of the first quarter.
Entering the production phase is a big milestone for SPI. Dundee says that future results from their next two wells will be a big catalyst for the company's stock price should they be in the 6 to 8 mmcf/d range.
Tuesday, February 1, 2011
Canandian Spirit Resources Inc. announces first Montney production!
Canadian Spirit Resources Inc. (SPI) announced today that they have entered into the production phase in their Farrell Creek Montney project (click here to see the release). They have tied in three previously completed Montney horizontal wells and it is expected that the plant will be close to its 10 mmcf/d capacity.
Don Gardner, SPI's CEO, says "the commisioning of the new Farrell Creek gas plan and our first production from the Montney Formation are milestone events for CSRI and our shareholders."
Don Gardner, SPI's CEO, says "the commisioning of the new Farrell Creek gas plan and our first production from the Montney Formation are milestone events for CSRI and our shareholders."
Wednesday, January 26, 2011
CSRI releases updated Corporate Presentation
Canadian Spirit Resources Inc. (SPI) has posted an updated Corporate Presentation to their website titled "Moving Montney Resources to Reserves in British Columbia" (click here to view the presentation).
Highlights include:
1. SPI now holds 34.4 net Montney sections
2. First production and gas plant on stream by the end of January
3. $21.1M working capital
4. "Game Changing" results demonstrate the ability of the lower Montney to add to the total productivity and reserve potential
5. Reserve Report expected by the end of March
6. Summary of recent Montney transactions including the Talisman/Sasol deal, Monterey Exploration and Storm Energy demonstrate similar transaction metrics. SPI states that their potential Montney value is $10.20/share unrisked based upon the Talisman/Sasol deal and implies "significant upside".
Highlights include:
1. SPI now holds 34.4 net Montney sections
2. First production and gas plant on stream by the end of January
3. $21.1M working capital
4. "Game Changing" results demonstrate the ability of the lower Montney to add to the total productivity and reserve potential
5. Reserve Report expected by the end of March
6. Summary of recent Montney transactions including the Talisman/Sasol deal, Monterey Exploration and Storm Energy demonstrate similar transaction metrics. SPI states that their potential Montney value is $10.20/share unrisked based upon the Talisman/Sasol deal and implies "significant upside".
Monday, January 24, 2011
ProspEx enters Montney Play in NE BC
ProspEx Reources Ltd. announced today (click here to see the release) that it has entered into the Montney play in the Birch area of NE BC. They have accumulated a 25,000 acre land position through Crown land sales and a farm-in. This is further evidence that the Montney play is still attracting interest.
Friday, January 21, 2011
Updated Montney Shale Map
With today's announcement from Canadian Spirit Resources Inc. (SPI), the company now has over 21,800 net acres in the Montney in Farrell Creek. As can be seen in the updated map, SPI's 100% lands (yellow) and JV lands (orange) are immediately adjacent to the Talisman/Sasol land. Byron Capital Securities recently calculated the value of the Talisman/Sasol land at $31,000/acre based upon their recent deal which translates to over $9/share for SPI.
Canadian Spirit Resources Inc. increases Montney acreage at Farrell Creek
Canadian Spirit Resources Inc. (SPI) announced today that they have acquired additional Montney lands adjacent to their existing lands at Farrell Creek. This acquisition increases their net land position to over 34 net sections. Using the recent Sasol/Talisman valuation metrics from their Farrell Creek deal as calculated by Byron Securities on SPI's land results in a potential per share value of $9.40/share. (22,000 acres x $31,000/acre + $21.1 M cash)/74.9 million shares = $9.40/share.
Tuesday, January 11, 2011
Byron updates research on SPI
Byron Capital Markets released research on Canadian Spirit Resources Inc. (SPI) reiterating their speculative buy rating and $3.25/share target price. Highlights from the research include:
1. Analysis of the recent Sasol/Talisman Energy deal resulting in transaction metrics equalling $31,000/acre for Talisman's Farrell Creek property adjacent to SPI's land.
2. Significance to SPI - $31,000/acre multiplied by SPI's net Montney land position of 19,700 acres yields a value for the company of $8.20/share.
3. Byron concludes that SPI is "undervalued and the shares have significant upside potential from current levels.
1. Analysis of the recent Sasol/Talisman Energy deal resulting in transaction metrics equalling $31,000/acre for Talisman's Farrell Creek property adjacent to SPI's land.
2. Significance to SPI - $31,000/acre multiplied by SPI's net Montney land position of 19,700 acres yields a value for the company of $8.20/share.
3. Byron concludes that SPI is "undervalued and the shares have significant upside potential from current levels.
Tuesday, January 4, 2011
Rising oil prices renew interest in converting natural gas to diesel
An article was published by the Midland Reporter-Telegram called "Rising oil prices renew interest in converting natural gas to diesel." It talks about the possibility of turning natural gas into liquid fuels and Sasol's recent deal with Talisman Energy. Because of the huge spread between oil and gas prices, the article states that the technology could be a "money maker for whoever is a first mover in that space."
With Sasol acquiring a 50 percent interest in Talisman's Farrell Creek shale gas assets, increased attention is being paid to the area benefitting companies like Canadian Spirit Resources Inc. (SPI). SPI has a large Montney resource land base in Farrell Creek equalling over 19,700 net acres.
With Sasol acquiring a 50 percent interest in Talisman's Farrell Creek shale gas assets, increased attention is being paid to the area benefitting companies like Canadian Spirit Resources Inc. (SPI). SPI has a large Montney resource land base in Farrell Creek equalling over 19,700 net acres.
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