EOG Elects To Discontinue Farmin Operations At The McCully Field Near Sussex, New Brunswick
Halifax, Nova Scotia, October 22, 2002: Corridor Resources Inc. (CDH - TSX-V) announced today that EOG Resources Canada Inc. (EOG) has elected not to continue activities with respect to its farmin agreement with Corridor in the McCully field area, southern New Brunswick. Earlier this year EOG had drilled, completed and tested three exploratory wells in the McCully field area as the commitment part of its farmin agreement with Corridor. EOG has not earned any of Corridor's interests in the McCully field area subject to the farmout agreement.
The results of the McCully D-48, H-28 and J-65 wells drilled in compliance with the commitment phase of the EOG farmin program have now become materially significant to Corridor for two reasons:
- EOG, the operating partner, has elected not to continue its participation in the farmin program, and
- Corridor now has twice the interest it would have had if EOG had continued their participation in the project.
Consequently, Corridor plans to release additional information regarding the results of the three EOG McCully wells as soon as practicable once a review of the well data has been completed.
Corridor is developing a plan for the further completion, delineation and development of the McCully field, building on the initial production and cash flow from the sale of natural gas to Potash Corporation of Saskatchewan, expected to commence in February, 2003. As an initial step, Corridor plans to commence workover operations and re-test the McCully D-48 well, the first well drilled by EOG, as soon as equipment can be mobilized to the field. Workover plans for the other EOG McCully locations will be developed following the re-completion and testing operations at the D-48 well. Results will be released as these activities are completed. Corridor intends to drill and complete future McCully wells with air or nitrogen in order to avoid the formation damage caused by water-based drilling and completion fluids.
Corridor is a junior oil and gas exploration company, headquartered in Halifax, Nova Scotia, with interests onshore in New Brunswick, Prince Edward Island and Quebec, 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.
