CORRIDOR ANNOUNCES FIRST QUARTER RESULTS
HALIFAX, Nova Scotia, May 14, 2009, (TSX - CDH): Corridor Resources Inc. ("Corridor") announced today its first quarter financial results.
The following table provides a summary of Corridor's financial and operating results for the three months ended March 31, 2009 with comparisons to the three months ended March 31, 2008. Corridor's financial statements and management's discussion and analysis for the three months ended March 31, 2009 have been filed on SEDAR at www.sedar.com and are available on Corridor's website at www.corridor.ca.
All amounts referred to in this press release are in Canadian dollars unless otherwise stated.
Selected Financial Information
| thousands of dollars, except per share amounts | Three months ended | |
|---|---|---|
| March 31, 2009 | March 31, 2008 | |
| Revenues | $23,812 | $20,179 |
| Net earnings | $6,816 | $6,081 |
| Net earnings per share - basic | $0.078 | $0.074 |
| Net earnings per share - diluted | $0.078 | $0.073 |
| Cash flow from operations (1) | $17,133 | $14,549 |
| Capital expenditures | $19,800 | $17,982 |
| Gross proceeds from capital stock issues | $- | $12 |
| Total assets | $318,840 | $242,483 |
| (1)Cash flow from operations is a non-GAAP measure. Cash flow from operations represents net earnings adjusted for non-cash items including depletion & depreciation, future income taxes, stock-based compensation and other non-cash expenses. See "Non-GAAP Financial Measures" in Corridor's management's discussion and analysis for the three months ended March 31, 2009. | ||
Highlights
- During Q1 2009, natural gas production averaged 17.9 mmscfpd net to Corridor (including production from penalty wells) with an average natural gas sales price of $14.38/mscf, resulting in net earnings of $6,816 thousand and basic and diluted net earnings per share of $0.078.
- Natural gas revenues for Q1 2009 increased to $23,212 thousand from $19,316 thousand for Q1 2008 due to the increase in the average natural gas sales price to $14.38/mscf resulting largely from forward sale contracts of 10,000 mmbtupd at an average sales price of $US14.95/mmbtu in effect between November 1, 2008 and March 31, 2009.
- Net earnings for Q1 2009 increased to $6,816 thousand from $6,081 thousand for Q1 2008, reflecting the increase in revenues partially offset by an increase in depletion expense.
- During Q1 2009, Corridor completed drilling the McCully C-29, P-47 and L-38 wells (3 net wells) in New Brunswick.
- On May 6, 2009 Corridor announced its intention to make a normal course issuer bid. Corridor intends to acquire 1,000,000 common shares during the period from May 11, 2009 to May 10, 2010.
Q1 2009 Netback Analysis
| thousands of dollars | Three months ended | |
|---|---|---|
| March 31, 2009 | March 31, 2008 | |
| Natural gas revenues | $23,212 | $19,316 |
| Royalty expense | (1,497) | (1,286) |
| Production expense | (990) | (1,188) |
| Transportation expense | (3,154) | (2,655) |
| Netback | $17,571 | $14,187 |
| Natural gas production (mmscf) | 1,614 | 1,870 |
| Natural gas production per day (mmscfpd) | 17.9 | 20.5 |
| Natural gas revenues ($/mmscf) | $14.38 | $10.78 |
| Royalty expense ($/mmscf) | 0.93 | 0.72 |
| Production expense ($/mmscf) | 0.61 | 0.64 |
| Transportation expense ($/mmscf) | 1.95 | 1.48 |
| Netback ($/mmscf) | $10.89 | $7.94 |
Netback increased to $17,571 thousand for Q1 2009 from $14,187 thousand for Q1 2008 due to the increase in the average natural gas sales price resulting from forward sale contracts of 10,000 mmbtupd at an average sales price of $US14.95/mmbtu in effect between November 1, 2008 and March 31, 2009.
Corridor is a junior resource company engaged in the exploration for and development and production of petroleum and natural gas onshore in New Brunswick, Prince Edward Island and Québec and offshore in the Gulf of St. Lawrence. Corridor currently has natural gas reserves in the McCully Field near Sussex, New Brunswick and has recently discovered crude oil reserves in the Caledonia Field, near Sussex, New Brunswick. In June 2007, Corridor completed the construction of a field gathering system, a gas plant and a pipeline lateral connecting the McCully Field to markets through the Maritimes & Northeast Pipeline.
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/