HALIFAX, Nova Scotia, July 28, 2016 (TSX – CDH): Corridor Resources Inc. (“Corridor”) wishes to provide a brief comment on recent developments regarding oil and gas exploration on Anticosti Island.
By way of background, on April 1, 2014, Corridor announced the establishment of the Anticosti joint venture with Pétrolia Inc., Ressources Québec, a subsidiary of Investissements Québec, an affiliate of the Government of Québec (“RQ”) and Maurel & Prom S.A., inclusive of its subsidiary, Saint-Aubin E&P Québec Inc. (“M&P”). The foregoing parties formed the Anticosti Hydrocarbons L.P. (the “Anticosti L.P.”) with the purpose to appraise and potentially develop hydrocarbon resources on Anticosti Island. Corridor has a 21.67% partnership interest.
On July 12, 2016, Pétrolia Inc. subsidiaries, Pétrolia Anticosti Inc. (operator for Anticosti L.P.) and Investissements PEA (a partner of the Anticosti L.P.) (collectively, Pétrolia) filed an injunction application with the Québec Superior Court seeking an order requiring RQ and M&P to comply with their contractual obligations in respect of Anticosti L.P., including that RQ and M&P make payments to Pétrolia, as the operator of Anticosti L.P., to fund the planned drilling program for three horizontal wells on Anticosti Island to be completed during the summer of 2016.
On July 22, 2016, the Court partially allowed the application but declined to order RQ and M&P to fund the planned drilling program at this time. Rather, the Court ordered RQ and M&P to advance to Pétrolia the funds necessary to maintain the employees dedicated to Anticosti L.P. until May 31, 2017 and build the drilling locations for the three wells chosen for the planned drilling program.
As a result of the Court’s decision and other developments, Corridor believes it is unlikely that Anticosti L.P.’s planned drilling program will be undertaken in 2016.
Corridor believes the delays in undertaking Anticosti L.P.’s planned 2016 drilling program are the direct result of comments by the Premier of Québec, who has repeatedly spoken out in opposition in the media against the exploitation of oil and gas on Anticosti Island. Corridor is reviewing its options to ensure the value of its investment in Anticosti L.P. is protected.
Corridor is a Canadian junior resource company engaged in the exploration for and development and production of petroleum and natural gas onshore in New Brunswick and Québec and offshore in the Gulf of St. Lawrence. Corridor currently has natural gas production and reserves in the McCully Field near Sussex, New Brunswick. In addition, Corridor has a shale gas prospect in New Brunswick, an offshore conventional hydrocarbon prospect in the Gulf of St. Lawrence and an unconventional hydrocarbon prospect through a 21.67% interest in Anticosti Hydrocarbons L.P., a joint venture with undeveloped lands on Anticosti Island, Québec.
For further information:
Contact: Steve Moran, President and CEO
Corridor Resources Inc.
#301, 5475 Spring Garden Road, Halifax, Nova Scotia B3J 3T2
Ph: (902) 429-4511 F: (902) 429-0209
Forward Looking Statements
This press release contains certain forward-looking statements and forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of Canadian securities laws. All statements other than statements of historical fact are forward-looking statements. Forward-looking information typically contains statements with words such as “anticipate”, “believe”, “plan”, “continuous”, “estimate”, “expect”, “may”, “will”, “project”, “should”, or similar words suggesting future outcomes. These statements include statements regarding programs to be undertaken by Anticosti L.P., the financing of such programs, and Corridor’s plans in respect to Anticosti L.P.
Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized. Actual results will differ, and the difference may be material and adverse to Corridor and its shareholders.
Forward-looking statements are based on agreements governing the Anticosti joint venture and Corridor’s current beliefs as well as assumptions made by, and information currently available to, Corridor including information concerning business prospects, strategies, regulatory developments, and the ability to add production and reserves through development and exploration activities and the terms of agreements with third parties, such as the Anticosti joint venture. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that forward-looking statements will not be achieved. These factors may be found under the heading “Risk Factors” in Corridor’s Annual Information Form for the year ended December 31, 2015.
The forward-looking statements contained in this press release are made as of the date hereof and Corridor does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.