Canadian Spirit Resources Inc. Announces Third Quarter 2021 Financial Results

Canadian Spirit Resources Inc. Announces Third Quarter 2021 Financial Results

CALGARY, Alberta, Nov. 26, 2021 (GLOBE NEWSWIRE) — Canadian Spirit Resources Inc. (“CSRI” or the “Corporation”) (TSXV:SPI) (OTCBB:CSPUF) announces the release of its interim financial results and Management Discussion and Analysis (“MD&A”), for the nine month period ended September 30, 2021.

Third Quarter 2021
This news release summarizes information contained in the unaudited interim financial statements and MD&A for the nine months ended September 30, 2021, and should not be considered a substitute for reading these full disclosure documents which are available on SEDAR at www.sedar.com or the Corporation’s website at www.csri.ca.

The following summarizes certain selected financial data for the three and nine months ended September 30, 2021:

(all amounts are presented in Canadian dollars, unless otherwise indicated)

    Three months ended
September 30,
    Nine months ended
September 30,
 
    2021     2020     2021     2020  
                         
Natural gas sales $   $   $   $  
Operating costs   (45,437 )   (59,363 )   (186,596 )   (198,568 )
                         
Operating netback $ (45,437 ) $ (59,363 ) $ (186,596 ) $ (198,568 )
Other income and gains   44     44     131     23,203  
Other Expenses   (219,422 )   (286,856 )   (704,004 )   (942,020 )
Settlement of claims               (514,552 )
                         
Net comprehensive loss for the period $ (264,815 ) $ (346,175 ) $ (890,469 ) $ (1,631,937 )

The Corporation’s loss and comprehensive loss for the nine months ended September 30, 2021, was $890,469 (September 30, 2020 – $1,631,937). When compared to the prior period the decrease in loss of $741,648 for the nine months was due mainly to the transition from employees to consultants resulting in $199,982 in savings, the use of a virtual office resulting in these costs being reduced by $41,559 and a decrease in the use of Professional fees in the amount of $44,340; Settlement of claims due to accrued settlement expenses on the termination of two executive employment contracts during the prior period were extinguished in the prior period with the settlement totaling $555,513 made in January 2021. Offsetting the cost reduction was the loss of comparative income from interest and gain on the sale of idle property, plant and equipment accounting for a reduction of other income of $23,072 and share-based compensation which increased by 62,891. Other costs during the 9 months remained fairly consistent.

    As of September 30,     As of December 31,  
    2021     2020  
             
Working Capital:            
Current assets $ 1,342,940   $ 464,264  
Current liabilities   (320,663 ) $ (899,827 )
Working capital   1,342,940   $ 464,264  
Total assets $ 39,230,123   $ 39,132,048  
Shareholders’ equity $ 36,836,433   $ 36,047,484  
Number of common shares outstanding   248,177,583     196,177,583  


UPDATE

In light of the increasing gas demand and strong natural gas prices in North America, the Corporation and its joint venture partner continue to monitor natural gas prices and is evaluating the potential of re-activating its shut-in wells.

Through the provincially funded dormant site and well programs, the Corporation has abandoned 10 wells and expects to abandon 12 shallow (non-Montney) idle wells by Q4/2021, which represents approximately 70 % of the Corporation’s operated idle wells.

CSRI continues to actively pursue and assess strategic alternatives.

Information regarding CSRI is available on SEDAR at www.sedar.com or the Corporation’s website at www.csri.ca.

For further information, please contact:
Canadian Spirit Resources Inc.
Telephone (403) 618-2113
Louisa DeCarlo (louisa@danrichresources.com)

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