HALIFAX, NOVA SCOTIA–(Marketwire – Dec. 21, 2011) – Corridor Resources Inc. (TSX:CDH) Corridor Resources Inc. reported today that, to date, it has not been successful in attracting a joint venture partner for its shale gas resource exploration prospect near Elgin, N.B. The predominant reason given has been the current economic environment, and specifically the current low level of natural gas prices. Corridor will continue its search for a joint venture partner in 2012.
Corridor is currently considering a plan to stimulate multiple intervals of the vertical Corridor Will DeMille O-59 shale gas appraisal well using liquid propane. This fracture stimulation technique proved to be successful in the Green Road G-41 well as reported in previous press releases. Corridor is very pleased with the results to date from the Will DeMille O-59 shale gas appraisal well. The completion of this well would be part of Corridor’s continuing program to advance a shale gas pilot project in the Elgin area.
The Corporation will exit 2012 with working capital of approximately $6 million and no debt and will announce its 2012 capital expenditure program in the first quarter of 2012.
Corridor is an Eastern Canadian 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 and production in the McCully Field near Sussex, New Brunswick and discovered crude oil reserves in the Caledonia Field near Sussex, New Brunswick in 2008. In addition, Corridor has contingent resources and discovered resources of shale gas in Elgin, New Brunswick.
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 business plans and strategies, the continued search for a joint venture partner, stimulation plans, the timing of drilling completion and testing, the working capital and debt at the end of the year and the timing of an announcement of its 2012 capital expenditure program.
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 the characteristics of the Frederick Brook shale, 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. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Unknown risks and uncertainties include, but are not limited to risks associated with oil and gas exploration, financial risks, substantial capital requirements, bank financing, government regulation, environmental, prices, risks may not be insurable and reserves and resources estimates. Further information regarding these factors and additional factors may be found under the heading “Risk Factors” in Corridor’s Annual Information Form for the year ended December 31, 2010.
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.