Canadian Spirit Resources Inc. said March 21 it has elected to shut-in natural gas production at Farrell Creek in the Montney Shale play in Northeastern British Columbia.

The company's net production over the past 60 days at Farrell Creek has averaged 625 thousand cubic feet per day. The assets are strategically located along pipeline infrastructure that will deliver gas to proposed LNG facilities on the West Coast of British Columbia, according to the company's website.

The shut-in, made by the Canadian company and its joint venture (JV) partner Canbriam Energy Inc., is effective March 31.

The decision to shut-in production is due to the continued deterioration in North American gas prices, the release said. Additionally, the JV has experienced a negative netback from its Farrell Creek production because of the further discounted price experienced by operators producing into the Spectra main pipeline.

"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," said Richard Couillard, president and CEO of Canadian Spirit Resources, in a statement.

The natural gas processing facility and associated wells will be reactivated once gas prices return to a profitable situation, according to the release.