Corridor Resources Inc.
TSX : CDH

Corridor Resources Inc.

March 26, 2010 16:07 ET

Corridor Announces 2009 Year End Results

HALIFAX, NOVA SCOTIA--(Marketwire - March 26, 2010) - (TSX:CDH): Corridor Resources Inc. ("Corridor") announced today its 2009 year end financial results.

Year End Financial Results

The following table provides a summary of Corridor's financial and operating results for the three and twelve months ended December 31, 2009 with comparisons to the three and twelve months ended December 31, 2008. Corridor's annual financial statements and management's discussion and analysis for the year ended December 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

  Three months ended December 31 Twelve months ended December 31
thousands of dollars except per share amounts 2009   2008 2009 2008
Revenues $11,389   $25,890 $48,989 $81,509
Net earnings (loss) $(1,825 ) $8,380 $1,667 $22,151
Net earnings (loss) per share - basic $(0.021 ) $0.096 $0.019 $0.260
Net earnings (loss) per share - diluted $(0.021 ) $0.096 $0.019 $0.259
Cash flow from operations(1) $5,664   $20,193 $27,829 $58,404
Capital expenditures $5,781   $20,411 $38,361 $79,735
Gross proceeds from capital stock issues $-   $- $131 $55,546
Total assets $300,605   $321,398 $300,605 $321,398
(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 and amortization, 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 year ended December 31, 2009.

Highlights

  • Natural gas revenues for the year ended December 31, 2009 decreased to $45,479 thousand from $75,839 thousand for the year ended December 31, 2008 due to a decrease in natural gas sales prices to $7.34/mscf in 2009 from $11.21/mscf in 2008 and to a decrease in Corridor's average daily gas production to 17.0 mmscfpd from 18.8 mmscfpd for the year ended December 31, 2008.
  • Net earnings for the year ended December 31, 2009 decreased to $1,667 thousand from $22,151 thousand for the year ended December 31, 2008 principally due to the decrease in natural gas revenues.
  • During Q4 2009, natural gas production averaged 19.5 mmscfpd net to Corridor (including production from penalty wells) with an average natural gas sales price of $5.53/mscf, resulting in a net loss of $1,825 thousand and basic and diluted net loss per share of $0.021.
  • Natural gas revenues for Q4 2009 decreased to $9,936 thousand from $22,667 thousand for Q4 2008 due to the decrease in the average natural gas sales price to $5.53/mscf from $13.01/mscf in Q4 2008 resulting largely from forward sale contracts of 10,000 mmbtupd at an average sales price of $US14.95/mmbtu in effect from November 1, 2008 to March 31, 2009.
  • Net earnings for Q4 2009 decreased to a net loss of $1,825 thousand from net earnings of $8,380 thousand for Q4 2008, reflecting a decrease in natural gas revenues.

Filing of Annual Information Form

Corridor also announced today that it has filed on SEDAR its Annual Information Form for the year ended December 31, 2009, which includes Form 51-101F1: Statement of Reserves Data and Other Oil and Gas Information, Form 51-101F2: Report of Independent Qualified Reserves Evaluator and Form 51-101F3: Report of Management and Directors under National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. Copies of the filings can be obtained electronically through the SEDAR system at www.sedar.com and are available on Corridor's website at www.corridor.ca.

Q4 2009 Netback Analysis

  Three months ended December 31   Twelve months ended December 31  
thousands of dollars except $/mscf 2009   2008   2009   2008  
Natural gas revenues $9,936   $22,667   $45,479   $75,839  
Royalty expense (294 ) (1,599 ) (1,979 ) (5,001 )
Production expense (1,134 ) (1,100 ) (3,493 ) (4,174 )
Transportation expense (2,848 ) (2,485 ) (10,509 ) (10,920 )
Netback $5,660   $17,483   $29,498   $55,744  
                 
Natural gas production (mmscf) 1,797   1,743   6,196   6,897  
Natural gas production per day (mmscfpd) 19.5   18.9   17.0   18.8  
                 
Natural gas revenues ($/mscf) $5.53   $13.01   $7.34   $11.21  
Royalty expense ($/mscf) (0.16 ) (0.83 ) (0.32 ) (0.72 )
Production expense ($/mscf) (0.63 ) (0.63 ) (0.56 ) (0.61 )
Transportation expense ($/mscf) (1.58 ) (1.43 ) (1.70 ) (1.58 )
Netback ($/mscf) $3.16   $10.12   $4.76   $8.30  

Natural gas revenues decreased to $9,936 thousand in Q4 2009 from $22,667 thousand in Q4 2008 due to the decrease in the average natural gas sales price to $5.53/mscf from $13.01/mscf in Q4 2008 resulting largely from forward sale contracts of 10,000 mmbtupd at an average sales price of $US14.95/mmbtu in effect from November 1, 2008 to March 31, 2009. The decrease in revenues was partially offset by the increase in Corridor's average daily gas production in Q4 2009 to 19.5 mmscfpd from 18.9 mmscfpd in Q4 2008.

The decrease in the royalty expense per mscf for Q4 2009 to $0.16/mscf from $0.83/mscf for Q4 2008 is due to the significant decrease in the natural gas revenues in Q4 2009 while the deductions allowable in the royalty calculation remained generally consistent.

The increase in transportation expense for Q4 2009 to $2,848 thousand from $2,485 thousand in Q4 2008 reflects mostly a transportation credit of $767 thousand recognized in Q4 2008 for excess fuel charged by M&NP US during the period from August 2007 to July 2008.

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 discovered crude oil reserves in the Caledonia Field near Sussex, New Brunswick in 2008. In addition, Corridor has contingent resources in Elgin, 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.

Contact Information

  • Corridor Resources Inc.
    Norman W. Miller, President
    902-429-4511
    902-429-0209 (FAX)
    www.corridor.ca