Canadian Spirit Resources Inc. and its joint venture partner, Canbriam Energy Inc., have elected to shut in their natural gas production at Farrell Creek effective March 31, 2016.
The continued deterioration in North American natural gas prices accompanied by the further discounted price experienced by producers in northeastern British Columbia producing into the Spectra main pipeline has resulted in a negative netback on joint venture natural gas production at Farrell Creek.
With no clear indication of a near term return to a positive natural gas pricing environment, this temporary shut in of production is viewed as a prudent business decision. The natural gas processing facility and associated wells will be reactivated once natural gas prices return to a profitable situation.
CSRI's net production over the past 60 days at Farrell Creek has averaged 625 Mcf/day.
In commenting on the shut in of production, Mr. Richard Couillard, President and Chief Executive Officer of CSRI stated: "This is an easy business decision. It makes no economic sense to produce our natural gas at a loss and at the same time deplete our reserves."
CSRI is a natural resource company focusing on the identification and development of opportunities in the unconventional natural gas sector of the energy industry.
Source: Canadian Spirit Resources Inc.
Date: Mar 21, 2016