Drilling Completed At Second Anticosti Well
Halifax, Nova Scotia, August 24, 1998: Corridor Resources Inc. (CDH - ASE) announced today the Jupiter #1 exploration well on Anticosti Island has encountered shows of natural gas in several intervals but no apparent commercial quantities of hydrocarbons. The well is the second of two wells drilled this summer as part of a four well farm-in by Shell Canada Limited and Encal Energy Ltd. on licences held by Corridor. Following completion of evaluation activities, the well will be abandoned. "We are encouraged by the presence of hydrocarbons in this well," said Norm Miller, Corridor's president. "The data obtained from the Jupiter and Roliff wells, combined with Shell/Encal's new seismic data, will be extremely valuable in Shell/Encal's selection of the next two drilling locations."
Shell and Encal have completed acquisition of approximately 400 kilometres of new seismic data in the central and eastern parts of the Island this summer. As part of their farm-in program on Corridor's licences, Shell and Encal are financially committed to drill the third well by year end 1999 and the fourth well by year end 2000. The farm-in program (4 wells and 500 kilometres of seismic) is being conducted at Shell/Encal's sole risk and expense, with Shell as the operator.
Corridor is a junior natural resource corporation focussing on oil and gas exploration in eastern Canada. The head office of Corridor is located in Halifax, Nova Scotia, and its common shares trade on the Alberta Stock Exchange under the symbol CDH.
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.
