New Brunswick Natural Gas flowing from Corridor's McCully Gas Field
Project will mean $6 million in royalties for New Brunswick Annually
Halifax, Nova Scotia, June 27, 2007, (TSX - CDH): Today New Brunswick Premier Shawn Graham and Corridor Resources CEO Norman Miller officially turned the valve and started the flow of New Brunswick natural gas towards homes and businesses connected to the Maritimes & Northeast Pipeline in Canada and the Northeastern United States.
At a ceremony that took place at the Corridor Resources McCully Gas Field gas began flowing into the gas plant and pipeline leading to the Maritimes & Northeast Pipeline.
A gas flare marked the start of production of approximately 35 million cubic feet of gas per day flowing from the Penobsquis, New Brunswick field. Production is expected to grow to 45 million cubic feet per day by November - enough energy to heat 250,000 homes.
At today's event, members of Corridor's staff, government officials, contractors and community members joined representatives from the Corridor board of directors to celebrate the start of production. Officials and special guests were given the opportunity to tour Corridor's well sites, gas plant and one of its drilling rigs.
"This is the culmination of a long journey," said Norman Miller, "but we've had many partners with us on the journey including our contractors, the community members who have worked with us, Potash Corporation of Saskatchewan Inc and the Province of New Brunswick. With their support we have arrived at this event."
The $200 million project will generate approximately $6 million in royalty revenues for the project annually, based on the planned initial rate of production.
The project has so far injected approximately $15 million directly into the local economy, and has created up to 20 permanent jobs in Penobsquis.
"We're committed to working with local suppliers and contractors in our development activities and production operations.," says Norman Miller. "We've worked with the community from the beginning, and we will continue to make that a priority."
"Our initial production at this facility is just the beginning. We have a continuous development drilling program underway to add gas reserves and production. This will include evaluation of deeper sediments at McCully, as well as other prospects in the region. In many ways this announcement is a stepping stone to potential future projects," said Miller.
The McCully Natural Gas project is operated by Corridor Resources Inc., a natural gas exploration and production company based in the Maritimes. Corridor has been exploring for natural gas in southern New Brunswick since 1995, encountering and overcoming many challenges on the road towards production of natural gas from depths of more than a mile and a half below Penobsquis, New Brunswick in the Kennebecasis Valley.
The project includes 13 initial production wells, a field gathering system, gas plant, and a 50 kilometer pipeline lateral connection to M&NP.
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/
Or
Contact: Sarah Moses
Tel: (902) 425-1860 ext. 258
Mobile: (902) 225-5812
smoses@mtlpr.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.
