Canadian Spirit Resources, a natural resources exploration company focusing on the identification and development of natural gas opportunities, has received the drilling license for the first of up to five wells targeting the Gething formation in Canada.
Pursuant to the previously announced joint venture, Shell Canada Energy, as operator, will be drilling these wells for the benefit of the joint venture.
The first well is expected to be spud in September 2008. These five wells, along with one deep water disposal well, form part of the initial capital program that Shell Canada will be conducting. This capital program is intended to advance the development of the Gething formation in the Farrell Creek area of northeast British Columbia.
Shell Canada holds approximately 95 sections of petroleum and natural gas rights to base of the Cadomin-Nikanassin formation and Canadian Spirit Resources (CSRI) holds approximately 50 sections of contiguous shallow rights in the area.
Upon completion of the pilot expansion commitment, Shell Canada may elect to proceed with pooling of the respective regional shallow rights holdings. Such pooling will create a large contiguous land base of approximately 145 sections or 92,800 acres of shallow rights.