McCully Production Wells, Natural Gas Reserves Report
Halifax, Nova Scotia, September 16, 2003: Corridor Resources Inc. (CDH - TSX-V) announced today that APA Petroleum Engineering Inc. (APA) of Calgary has completed an independent engineering report for the natural gas reserves assigned to the producing McCully A-67 and P-66 wells (50% CDH / 50% PCS) located near Sussex, New Brunswick. Natural gas production from these two wells commenced in April at a rate of approximately 2.2 million cubic feet per day to meet energy requirements of the nearby Potash Corporation of Saskatchewan (PCS) potash mill. A scheduled four-week potash plant shutdown for routine maintenance in late July provided an opportunity to determine gas reserves estimates based on pressure build-up information while the wells were shut- in.
The APA report assigns gross proven reserves of 1.4 billion cubic feet (bcf) to the A-67 well and 5.4 bcf to the P-66 well, for a gross proven total of 6.8 BCF. (3.4 bcf net to CDH). The report also indicates gross probable additional reserves of 6.7 BCF, for a gross proven plus probable of 13.5 bcf (6.75 bcf net to CDH). Previously, no probable reserves were assigned to these two wells.
Corridor expects that this APA reserves report will assist in presentations with prospective farmin partners for the next stage of drilling and development at the McCully Field, and a lateral connection to the Maritimes & Northeast gas transmission line approximately 45 kilometres to the north of McCully.
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.
