Corridor Updates Current Activities
Halifax, Nova Scotia, August 25, 2004: Corridor Resources Inc. (CDH - TSX-V) today reported an update of its activities on Prince Edward Island, on Anticosti Island and at the McCully gas field in New Brunswick. On Prince Edward Island, Corridor has acquired two new exploration permits covering a total area of 264,129 acres in the west central part of the Island. The permits cover a number of natural gas prospects, including the gas-bearing Green Gables structure. The permits are valid for a period of six years.
On Anticosti Island, Corridor is abandoning the re-entry of the Chaloupe well after encountering a flow of salt water following drilling out the abandonment plugs above the Trenton-Black River (TBR) formation. The high pressure and salinity of the salt water indicate that it is sourced from the underlying Romaine formation, known to be fractured and water bearing in the Chaloupe well. The fact that the salt water from the Romaine is apparently in wellbore communication with the lower pressured TBR formation has negated the prospect of testing the TBR for oil at this location. The TBR formation remains prospective for oil at other well locations on the Chaloupe structure and at other prospects on Anticosti Island.
Corridor is in discussions with candidates to provide contractor services for the drilling and completion of future wells at the McCully gas field. The Company is also in discussions with potential parties who may farm in and/or finance Corridor's interests at McCully during the next stage of drilling and completion activities. Pending satisfactorily concluding these discussions, Corridor expects to commence a five-well exploration and development drilling program this fall aimed at developing sufficient natural gas production capacity to initiate a pipeline lateral connection to the main Maritimes & Northeast Pipeline located 30 miles north of the McCully field.
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.
