Canadian Spirit Resources Inc. announces the release of its interim financial results and Management Discussion and Analysis (“MD&A”), for the nine month period ended September 30, 2021.
The following summarizes certain selected financial data for the three and nine months ended September 30, 2021:
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.
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.
