Corridor To Drill Magdalen Islands Natural Gas Prospect
Halifax, Nova Scotia, June 7, 1999: Corridor Resources Inc. (CDH - ASE) announced today that it has signed a farmout agreement with Foothills Minerals Inc. of Tampa, Florida to undertake exploration drilling on Corridor's Magdalen Islands permits in the Gulf of St. Lawrence. Under the terms of the farmout agreement, Foothills has paid Corridor US$100,000 in cash and will finance 75% of the cost of an initial "slim hole" exploration well in order to earn a 25% working interest in Corridor's Magdalen licences. Subject to receiving required approvals from Quebec Natural Resources, the well will be drilled onshore near Fatima on Cap-aux-Meules to a planned depth of 8000 feet (2438 metres) at an estimated cost of $720,000 ($Cdn.), commencing in late August of this year. Corridor will finance 25% of the well cost and will operate the well.
Upon completion of the initial well, Foothills will have the option until December 1, 2000, to earn an additional 25% working interest in the licences by financing 75% of the cost of a second "conventional" earning well to be drilled on the licences up to a total estimated cost of US$1,400,000.
Corridor's Magdalen licences cover an area of 285,000 acres on the Magdalen Islands and adjacent waters.
Corridor is a junior oil and gas exploration company, headquartered in Halifax, Nova Scotia, holding more than 5 million acres of petroleum exploration licences in Quebec and Atlantic Canada.
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.
