Corridor Resources Inc. Announces An Agreement With Hydro-Québec
Halifax, Nova Scotia, August 7, 2003: Corridor Resources Inc. (CDH - TSX-V) and Hydro-Québec have agreed to join forces in the evaluation of the oil and gas potential of the Old Harry and Cape Ray prospects in the Laurentian Channel and to enable exploration drilling to be undertaken in the Québec sector of the Gulf of St. Lawrence.
Hydro-Québec has agreed to make a payment to Corridor in the amount of $500,000. in order to secure an option to earn a minimum of 18.75% working interest in the farmout lands covering the Old Harry and Cape Ray prospects. Corridor will provide Hydro-Québec with access to modern seismic and reprocessed older seismic data related to the farmout lands.
Terms for the farmout will be finalized when an agreement is reached with one or more other participants, one of whom will act as operator for the farmout lands. Corridor will remain the operator of the farmout lands until a formal farmout agreement is concluded with an operating participant.
Corridor holds Québec exploration permits and Newfoundland offshore exploration licences in the Laurentian Channel region covering and in the vicinity of the Old Harry and Cape Ray prospects, and is seeking federal licences coincident with the Québec Old Harry licenses.
Corridor and Hydro-Québec will work diligently and cooperatively together in an effort to secure all requisite approvals for Corridor to drill an initial exploratory well on the Québec side of the Old Harry prospect.
"This partnership is strategic for Hydro-Québec given the large estimated potential of the Old Harry and Cape Ray structures", said Jean A. Guérin, Vice President - Oil and Gas Exploration at Hydro-Québec.
"We are please to have the support of Hydro-Québec in our efforts to open up the large potential oil and natural gas resources of the Gulf of St. Lawrence", said Norm Miller, President of Corridor Resources Inc.
Corridor is a junior oil and gas exploration company, headquartered in Halifax, Nova Scotia, with interests onshore in New Brunswick, Prince Edward Island and Québec and offshore in the Gulf of St. Lawrence where the Company holds Québec exploration permits and Newfoundland exploration licences and has identified a world-class exploration prospect on the farmout lands.
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.
