Corridor Enters Option Agreement With PetroWorth Regarding Exploration Licences On PEI
Halifax, Nova Scotia, May 11, 2007, (TSX - CDH): Corridor Resources Inc. (CDH - TSX) announced today that it has entered into an option agreement with PetroWorth Resources Inc. (CNQ:PTWR)(Frankfurt:T3F) regarding certain exploration licences held by PetroWorth on Prince Edward Island. Under the terms of the agreement, each of Corridor and PetroWorth will make available to the other party seismic information relating to certain properties on Prince Edward Island and in New Brunswick. Prior to August 12, 2007, Corridor will have the option to elect to drill an exploration well to a minimum depth of 2800 metres on PetroWorth's Exploration Licence 02-03, located towards the eastern end of the Island. If the option is exercised, drilling operations at the well are to be commenced prior to February 1, 2008, although Corridor may elect to drill and evaluate the well this summer, including a frac stimulation treatment if the well is successful. Corridor would then have the option, prior to October 1, 2008, to drill two more wells on the licence and to pay 50% of the costs of these wells to earn a 50% working interest in the licence. Subject to completion of the earning program described above, Corridor will have a further option to finance and drill a total of two more wells on four other PetroWorth licences on PEI in order to earn a 50% working interest in those additional licences. In total, Corridor has the option to earn a 50% interest in more than 400,000 acres on Prince Edward Island if drilling and frac stimulation operations prove to be successful in producing natural gas at commercial rates in PEI. Activities on PetroWorth's lands, if undertaken, would be additional to the planned drilling, evaluation and completion of a well on Corridor's Green Gables structure this summer.
Corridor Resources Inc. is a Halifax, Nova Scotia based company focused on exploring and developing natural gas resources in the McCully Field and surrounding areas of southern New Brunswick. The Company is in the latter stages of constructing a field gathering system, a gas plant, and a pipeline lateral to connect the McCully Field to markets through the Maritimes & Northeast Pipeline (M&NP). The Company plans to initiate natural gas production to M&NP by mid June, 2007, at a planned initial gross rate of 35 mmscf/day (approximately 63% net to Corridor), and has a continuous development drilling program underway to add reserves and production capacity as field development expands. Corridor also has a number of potentially high impact exploration projects planned in New Brunswick and elsewhere in eastern Canada.
For further information:
Corridor Resources Inc.#301, 5475 Spring Garden Road,
Halifax, Nova Scotia
B3J 3T2
Contact: Norman W. Miller, President and CEO
Tel: (902) 429-4511
Fax: (902) 429-0209
Web: http://www.corridor.ca/
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.
