Corridor Updates Drilling Activities On Anticosti Island
Halifax, Nova Scotia, July 29, 2005: Corridor Resources Inc. (CDH - TSX-V) (the "Corporation") announced today that it has temporarily suspended drilling operations at the Chaloupe #1 well after the well encountered a flow of salt water just below the shoe of the 7" intermediate casing string. Following unsuccessful attempts at shutting off the water influx with successive cement squeezes, Corridor plans to run and cement a 4-1/2" casing liner to seal off the water zone before penetrating the oil-prospective Black River formation.
While awaiting delivery of the Chaloupe casing liner, the rig has been moved to the MacDonald well location and has commenced drilling operations at that site. Following completion of drilling and evaluation operations at MacDonald, expected to be about the third week of August, the rig will be moved back to the Chaloupe location to run the casing liner and to drill and evaluate the Black River target formation.
Corridor holds a 75% interest in the Chaloupe well and a 50% interest in the MacDonald well, with Hydro-Quebec holding the balance of the interest in these wells.
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.
