Corridor Provides Update On McCully Farmout Discussions
Halifax, Nova Scotia, January 5, 2005: Corridor Resources Inc. (CDH - TSX-V) announced today that it is continuing farmout discussions with a prospective partner interested in participating with Corridor in the further development of the McCully natural gas field located near Sussex in south central New Brunswick. These discussions have taken an extended amount of time as a result of the complexity of the issues and the number of parties involved, and there is no assurance at this time that a deal will ultimately be consummated. Recently, a second party has commenced reviewing Corridor's McCully data with a view to making a farmin proposal. An update on McCully farmout activities will be provided when significant new information becomes available.
The McCully A-67(#1) and P-66(#2) wells continue to demonstrate excellent production performance. After producing for more than 18 months, the wells have produced more than 1.1 billion cubic feet (bcf) of gas at an average daily production rate of 2 million cubic feet and sustained average wellhead pressures of approximately of 1500 pounds per square inch. In December, 2004, APA Petroleum Engineering updated its independent engineering report covering the northwest flank of the McCully Field. The report estimates that portion of the field contains proven and probable gas reserves of 119 bcf, and proved, probable and possible reserves of 163 bcf, of which approximately two-thirds are net to Corridor's interest (please refer to Corridor's website http://www.corridor.ca/ for map of reserves study area).
Corridor is a junior oil and gas exploration and production 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.
