Corridor To Redeem Convertible Notes
Halifax, Nova Scotia, September 22, 2005: Corridor Resources Inc. (CDH - TSX-V) (the "Corporation") announced today that it will redeem all of its $3 million 10% Convertible Unsecured Subordinated Notes (the "Notes") on October 21, 2005 (the "Redemption Date") unless such Notes are converted into common shares by the holders of such Notes prior to the Redemption Date. The principal amount of the Notes is convertible into common shares of Corridor at a conversion price of $1.60 per common share.
The Notes were issued on October 8, 2002 to finance Corridor's 50% interest in the gathering lines and processing plant necessary to enable the sale of natural gas from the McCully field to the potash mill owned by Potash Corporation of Saskatchewan Inc. near Sussex, New Brunswick. The Notes mature on October 15, 2007 unless earlier redeemed or converted and are redeemable in whole or in part at par, together with accrued and unpaid interest thereon, at any time after October 15, 2005.
A notice of redemption has been sent today to the registered holders of the Notes advising of the Redemption Date. Holders of the Notes will receive their semi-annual interest payment when due on October 15, 2005. As described in the notice of redemption, holders of the Notes who wish to convert the principal amount of their Notes into common shares and also receive their semi-annual interest payment will be required to send a notice of conversion, together with their Notes, to Corridor after the interest payment date on October 15 and prior to the Redemption Date.
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 Québec, 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.
