Corridor Announces Third Quarter Earnings
Halifax, Nova Scotia, November 13, 2007, (TSX - CDH): Corridor Resources Inc. (CDH - TSX) announced today net earnings of $1.1 million for Q3, 2007 compared to a net loss of $0.1 million for the three months ended August 31, 2006. The increased net earnings results from the commencement of natural gas production to Maritimes & Northeast Pipeline (M&NP) on June 28, 2007. Corridor's net earnings per share were $0.013 for Q3, 2007 compared to a net loss per share of $0.001 for the three months ended August 31, 2006. Cash flow provided by operating activities increased by $4.8 million to $6.2 million in Q3, 2007. "The third quarter marked an important milestone for the Company as it represented the first full quarter of McCully natural gas production to M&NP" said Norman Miller, President and Chief Executive Officer.
For the nine months ended September 30, 2007, a net loss of $0.6 million was incurred compared to a net loss of $0.2 million for the nine months ended August 31, 2006. The decreased earnings primarily reflects the increased general and administrative expenses necessary for the preparation of natural gas production to M&NP. The Corporation changed its financial year end in 2006 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 financial results for the three and nine months ended September 30, 2007 to financial results for the three and nine months ended August 31, 2006.
Other activities
In other activities, the McCully J-76 well has been drilled, logged and cased to a total measured depth of 3100 meters. The well encountered 15 meters of net porous "B" sand, while the "A" sand was thin and tight at this location. The well also penetrated 237 meters into the Frederick Brook formation and has been suspended as a potential gas producer from the Frederick Brook shale and possibly the "B" sand. Corridor expects the earliest time the well will be completed and tied-in to the gas plant would be during next summer's frac campaign. The results of the J-76 and H-76 wells confirm that the western limit of the McCully Field has been reached in these particular fault blocks. In respect of the current frac campaign, Corridor expects to provide an update on test results in early December. While the program has taken longer to implement than anticipated it remains on budget.
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 has completed construction of a field gathering system, a gas plant, and a pipeline lateral connecting the McCully Field to markets through the Maritimes & Northeast Pipeline (M&NP). The Company initiated natural gas production to M&NP on June 28, 2007 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.
