Corridor Releases Independent McCully Reserves Report
Halifax, Nova Scotia, December 22, 2005: Corridor Resources Inc. (CDH - TSX-V) (the "Corporation") announced today that the independent reserves report for its year end, August 31, 2005, has now been completed and is available for review in Corridor's offices and on Corridor's website (http://www.corridor.ca/). The report has been prepared by APA Petroleum Engineering Inc. (APA) and Petrel Robertson Consulting Ltd. in accordance with the requirements of National Instrument 51-101, and has an effective date of September 1, 2005.
The updated reserves report assigns current Proved Reserves of 17.2 billion standard cubic feet (Bscf) of natural gas for the field, of which Corridor's working interest share before royalty is 8.6 Bscf. Proved Reserves are limited to those for which there is an existing sales contract, in this case for local delivery to the potash mill owned and operated by Potash Corporation of Saskatchewan Inc. (PCS). The report estimates Proved Plus Probable Reserves of 119.3 Bscf (79.8 Bscf net to Corridor's interest) within the assessed area, stating that, "The forecast gas demand relating to the PCS contract is a small fraction of the estimated gas-in-place for the McCully Field... The available data indicate that the gas export scheme will be economically attractive and Corridor has a well-defined plan of action in pursuit of this development opportunity. APA therefore recognizes Probable Gas Reserves in relation to the gas export option."
The updated reserves report covers an area of less than 20% of the McCully structure, as limited by current 3-D seismic coverage and to the area where most of the McCully wells have been drilled to date (please refer to the accompanying map showing the assessed area in yellow within the overall McCully structure presented in red). Corridor expects to expand the area of assessment once additional 3-D seismic has been obtained and additional wells have been drilled in the field. The report takes account of activities up to Corridor's fiscal year end (August 31, 2005) and prior to certain subsequent drilling and frac activities later in the year.
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.
