Corridor Evaluating Gas Exploration Well Near Sussex, New Brunswick
Halifax, Nova Scotia, October 4, 2000: Corridor Resources Inc. (CDH - CDNX) announced today that it is continuing to evaluate natural gas encountered in the McCully #1 exploration well located approximately 11 kilometres northeast of the town of Sussex, New Brunswick. The Potash Corporation of Saskatchewan (PCS) is Corridor's partner and operator of the well. The well has been drilled to a depth of 2400 metres and flowed natural gas to the surface during air drilling operations. The well has been logged and cased to that depth. The well will be drilled to total depth, followed by production testing.
The CDNX has approved an amendment to the terms of a convertible debenture issued by Corridor on July 14, 1998. The conversion price of the remaining principal outstanding of $100,000 has been reduced from $1.60 per common share to $0.40 per common share. The principal amount is only convertible under certain limited circumstances and expires June 30, 2001 if not converted. The change in conversion price requires Corridor to reserve an additional 62,500 common shares for issuance.
Corridor is a junior oil and gas exploration company, headquartered in Halifax, Nova Scotia, with interests in more than 5 million acres of petroleum exploration licences in Quebec, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland.
The Potash Corporation of Saskatchewan Inc. is a public company trading on the Toronto and New York stock exchanges.
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.
