HALIFAX, NOVA SCOTIA–(Marketwired – June 3, 2016) – Corridor Resources Inc. (“Corridor”) (TSX:CDH) wishes to comment on the May 27, 2016 Government of New Brunswick’s decision to continue a moratorium on hydraulic fracturing for an indefinite period.
Corridor is profoundly disappointed with this decision.
Corridor has always believed in the hydrocarbon potential of New Brunswick. It has operated safely and responsibly in New Brunswick since 1998, and proudly stands behind its health and safety track record. During that time, Corridor has worked collaboratively with several governments, both Liberal and Progressive Conservative, and has earned strong support for its continued business operations in the Sussex, Penobsquis and Elgin communities.
Since its inception, Corridor and its partners have invested over $500 million dollars of risk capital in New Brunswick exploring for oil and natural gas. It has drilled 40 wells, completed 109 fracture stimulations, and has constructed and operates a gas plant and 50 kilometres of pipeline. Corridor and its partners have paid over $20 million in royalties to the Government of New Brunswick and another $6.5 million to local landowners and municipalities.
Corridor recently advised the Government of our intention to spend approximately $70 million in new capital drilling and completing 11 development wells from 2018 to 2021, assuming the moratorium was lifted in the near term. This capital program is now postponed indefinitely, as are efforts to recruit a joint venture partner to conduct further exploration to unlock the vast potential of the Frederick Brook shale.
Corridor has always widely promoted the hydrocarbon potential of New Brunswick and, with the initial moratorium announcement, Corridor accepted the challenge to promote greater public education and awareness of the practice of hydraulic fracture stimulation. Accordingly, Corridor led the establishment of an education program under the auspices of the New Brunswick Responsible Energy Development Alliance (http://nbnaturalgas.ca). We are grateful for the support of many organizations in this endeavor, including but not limited to, the Atlantic Chamber of Commerce, the Saint John, Moncton and Fredericton Chambers of Commerce, Miramichi Valley Business Association, the Canadian Manufacturers and Exporters, and Spark (formerly the Metal Working Association of New Brunswick). The most recent independent public opinion polls conducted in New Brunswick indicate a majority of New Brunswickers support hydraulic fracturing.
Corridor is currently contemplating its next steps in light of the New Brunswick Government’s decision to continue the moratorium on fracturing indefinitely. As part of this process, Corridor will assess the impact of this decision on its business, operations and financial condition, which will include consultation with its independent reserves evaluators to assess the extent of the impact on Corridor’s oil and gas reserves.
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 which has undiscovered resources on Anticosti Island, Québec.
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. In particular, this press release contains forward-looking statements pertaining to: Corridor’s business plans and strategies, exploration and development plans, including timing and costs of such plans (including drilling plans in New Brunswick); natural gas prices in New Brunswick; the expectations regarding the supply of natural gas in New Brunswick.
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 Corridor’s current beliefs as well as assumptions made by, and information currently available to, Corridor concerning anticipated financial performance, business prospects, strategies, regulatory developments, future natural gas commodity prices, future natural gas production levels, the ability to obtain equipment in a timely manner to carry out development activities, the ability to market natural gas successfully to current and new customers, the impact of increasing competition, the ability to obtain financing on acceptable terms, and the ability to add production and reserves through development and exploration activities. 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.
Steve Moran
President and CEO
(902) 429-4511
(902) 429-0209 (FAX)
www.corridor.ca