Drilling Commences On Corridor Lands - Anticosti Island
Halifax, Nova Scotia, June 23, 1999: Corridor Resources Inc. (CDH - ASE) announced today that Shell Canada Limited, as Operator, and its partner Encal Energy Ltd. (ENL-TSE, ECA-NYSE) have spudded the Chaloupe #1 well located in the eastern portion of Anticosti Island. Chaloupe is the first of three wells to be drilled this summer by Shell as part of a farmin program on Corridor's licences. The wells will be located on three distinctly different styles of prospects identified by new seismic run by Shell last summer towards the eastern end of the Island.
Upon completion of the three wells to be drilled this summer, Shell and Encal will earn a 100% working interest in licences covering most of Anticosti Island, subject to a 10% gross overriding royalty payable to Corridor on the first 5 million barrels equivalent of oil produced and removed from the Island. This royalty would be convertible to a 30% Corridor carried working interest, with no capital payback, once the 5 million barrel production threshold has been achieved.
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.
