Canbriam Successfully Concludes HZ Montney Well

Canadian Spirit Resources announced that Canbriam Energy, operator of the Company's Montney joint venture, has drilled and cased the c-A48-I/94-B-1 horizontal well in the lower portion of the Montney Formation at Farrell Creek, British Columbia. This well will be stimulated using multi-stage fracture technology after the removal of spring road bans.

The c-A48-I well builds on the successful test of the lower Montney Formation at the b-17-I well  with the objective of determining if the lower portion of the Montney Formation can contribute economically to the total productivity of the Montney at Farrell Creek.

Talisman Energy Inc. has announced that they have begun commercial development of their Montney shale play located immediately north of CSRI's Montney lands and expects to exit 2010 producing 40-60 mmcf/d of natural gas.

In addition to the completion of the c-A48-I well, Canbriam has indicated they plan to drill the c-18-I horizontal well targeting the Montney Formation commencing in late June. The c-18-I well is expected to be followed by additional drilling locations targeting the Montney Formation.

Engineering of a natural gas compressor/dehydration facility has begun with a planned capacity of up to 20 mmcf/d with a target completion date and commercial operation in the fourth quarter of 2010.


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