Oil And Gas Exploration To Commence On Anticosti Island (Backgrounder)
May 19, 1998: The loadout of the Ralex#4 drilling rig on the MV Avik at Becancour, Quebec on May 19, 1998 represents an historic point in the exploration for indigenous petroleum resources in Quebec. Renewed petroleum exploration interest in this area has been stimulated by Corridor Resources Inc. which obtained exploration licences on the Island in 1995 and conducted a modern seismic survey in the south/central part of the Island in 1996 and 1997.
Corridor's interest in exploring Anticosti Island was initiated by shows of oil and/or gas that had been reported in seven wells drilled between 1963 and 1970. Modern seismic obtained by Corridor in 1996 and 1997 demonstrated the presence of promising structures in the subsurface with the potential to trap large volumes of hydrocarbons. The attractive geology unveiled by these surveys was influential in helping Corridor to attract the right partner to undertake exploration drilling on the Island.
On December 1, 1997, Corridor announced that it had executed an agreement with Shell Canada Limited whereby Shell agreed to spend up to $20 million to drill four exploration wells and conduct 500 kilometres of seismic on Anticosti island to earn an interest in Corridor's Anticosti licences. Corridor is extremely pleased to have attracted a partner of Shell's stature and capability to operate the Anticosti exploration program. On May 6, 1998, Encal Energy Ltd. of Calgary announced that it has joined Shell and Corridor in the upcoming exploration activities on Anticosti Island. Encal Energy Ltd. (TSE:ENL, NYSE:ECA) is a Calgary-based, intermediate exploration and development company, with an emphasis on successfully finding and efficiently producing light oil and natural gas reserves.
The government of Quebec has been both proactive and supportive in promoting and facilitating the resurgence of petroleum exploration on Anticosti Island and in stimulating interest in other prospective areas of Quebec. The Department of Natural Resources has played a central role in making available data from previous exploration work in the regions, in managing the exploration permitting process, and in overseeing the responsible conduct of exploration activities. Quebec's Department of Environment is working closely with the Department of Natural Resources and with the industry in achieving these resource management objectives. Additionally, SEPAQ Anticosti and the town of Port Menier are working cooperatively with other government departments and the oil companies in ensuring that exploration activities are undertaken in a manner that does not compromise important fishing, hunting, forestry and other interests on Anticosti island.
Beyond Anticosti Island, there are several other areas of Quebec which are attracting the interest of petroleum explorers, including the Quebec Lowlands, the Gaspé Peninsula, the Magdalen Islands and offshore in the Gulf of St. Lawrence. The startup of drilling activities on Anticosti Island, symbolized by the loadout of the drilling rig at Becancour today, could be the spark that leads to expanded and ongoing petroleum exploration and potentially production in these extensive and vastly underexplored regions of Quebec.
Corridor Resources Inc. is a Halifax based oil and gas exploration company whose shares trade on the Alberta Stock Exchange (ASE:CDH). The Company has Quebec exploration licences on Anticosti Island, on the Magdalen Islands, in the Gaspé Peninsula and offshore in the Gulf of St. Lawrence.
This press release contains certain forward looking statements relating to, but not limited to, Corridor's operations, anticipated financial performance, business prospects and strategies, including expectations relating to production levels; capital expenditure programs; the quantity of natural gas reserves; projections of market prices; projections of costs; supply and demand for natural gas; expectations regarding the ability to raise capital and to continually add to reserves through exploration and development; and treatment under governmental regulatory regimes. These statements are based on current expectations that involve numerous assumptions regarding factors and risks that could cause actual results to vary materially, including, without limitation to, the following factors: risks associated with oil and gas exploration, financial risks, substantial capital requirements, bank financing, government regulation, environmental, prices, markets and marketing, dependence on key personnel, dependence on Potash Corporation of Saskatchewan, Inc., availability of drilling equipment and access, risks may not be insurable, management of growth, expiration of licenses and leases, reserves estimates, seasonality, competition, conflicts of interest, Kyoto Protocol, issuance of debt, title to properties and hedging. There is no representation by Corridor that actual results achieved will be the same in whole or in part as those set out in the forward looking information. Furthermore, the forward looking statements contained in this press release are made as of the date hereof, and Corridor undertakes no obligation, except as required by applicable securities legislation, to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise.
