Natural Gas Production Commences At McCully
Halifax, Nova Scotia, April 23, 2003: Corridor Resources Inc. (CDH - TSX-V) announced today that natural gas production has commenced from the first two wells in the McCully Field, located near Sussex, New Brunswick. The gas is being delivered by two pipelines to a gas plant where it is being processed prior to fueling Potash Corporation of Saskatchewan's (PCS) potash mill located two kilometres from the wells. The planned natural gas production rate to meet expected mill demand is 2.3 million cubic feet per day. Corridor's 50% share of the gas production will be priced monthly based on the equivalent cost of #2 fuel oil.
The natural gas production from McCully is the first to occur in New Brunswick since production from Stoney Creek, New Brunswick's only other gas field, ended in 1991.
The gas devoted to the PCS Potash mill from the first two McCully wells represents only a small fraction of the natural gas reserves and production potential of the McCully Field. Corridor is in discussions with several prospective farmin partners to undertake the next stage of drilling and development of the field, with a view to connecting the field by pipeline to the main Maritimes & Northeast trunkline passing approximately 45 kilometres to the north of McCully. Timing for the resumption of drilling at McCully will depend upon the outcome of these discussions.
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.
