Corridor Announces First Quarter Earnings
Halifax, Nova Scotia, May 11, 2007, (TSX - CDH): Corridor Resources Inc. announced today a net loss of $825 thousand for Q1, 2007 compared to a net loss of $307 thousand for the three months ended February 28, 2006. Corridor's net loss per share was $0.011 for Q1, 2007 compared to a net loss per share of $0.005 for the three months ended February 28, 2006. The decrease in earnings primarily reflects higher general and administrative expense relating to the increase in management resources needed for the preparation of natural gas production to Maritimes & Northeast Pipeline in mid-June. The Corporation recently changed its financial year end from August 31 to December 31 to be consistent with most reporting issuers in the oil and gas industry and as a result Corridor is comparing Q1, 2007 results to the three months ended February 28, 2006.
Corridor has entered into an amending agreement with the Royal Bank of Canada to increase its credit facility from $30 million to $40 million to fund the increases in the projected final costs of the midstream facilities reported in the press release dated March 23, 2007.
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.
