Corridor Resources Inc.
TSX : CDH

Corridor Resources Inc.

November 13, 2007 16:02 ET

Corridor Announces Third Quarter Earnings

HALIFAX, NOVA SCOTIA--(Marketwire - Nov. 13, 2007) - Corridor Resources Inc.(TSX:CDH) announced today net earnings of $1.1 million for Q3, 2007 compared to a net loss of $0.1 million for the three months ended August 31, 2006. The increased net earnings results from the commencement of natural gas production to Maritimes & Northeast Pipeline (M&NP) on June 28, 2007. Corridor's net earnings per share were $0.013 for Q3, 2007 compared to a net loss per share of $0.001 for the three months ended August 31, 2006. Cash flow provided by operating activities increased by $4.8 million to $6.2 million in Q3, 2007. "The third quarter marked an important milestone for the Company as it represented the first full quarter of McCully natural gas production to M&NP" said Norman Miller, President and Chief Executive Officer.

For the nine months ended September 30, 2007, a net loss of $0.6 million was incurred compared to a net loss of $0.2 million for the nine months ended August 31, 2006. The decreased earnings primarily reflects the increased general and administrative expenses necessary for the preparation of natural gas production to M&NP. The Corporation changed its financial year end in 2006 from August 31 to December 31 to be consistent with most reporting issuers in the oil and gas industry and as a result Corridor is comparing financial results for the three and nine months ended September 30, 2007 to financial results for the three and nine months ended August 31, 2006.

Other activities

In other activities, the McCully J-76 well has been drilled, logged and cased to a total measured depth of 3100 meters. The well encountered 15 meters of net porous "B" sand, while the "A" sand was thin and tight at this location. The well also penetrated 237 meters into the Frederick Brook formation and has been suspended as a potential gas producer from the Frederick Brook shale and possibly the "B" sand. Corridor expects the earliest time the well will be completed and tied-in to the gas plant would be during next summer's frac campaign. The results of the J-76 and H-76 wells confirm that the western limit of the McCully Field has been reached in these particular fault blocks. In respect of the current frac campaign, Corridor expects to provide an update on test results in early December. While the program has taken longer to implement than anticipated it remains on budget.

Corridor Resources Inc. is a Halifax, Nova Scotia based company focused on exploring and developing natural gas resources in the McCully Field and surrounding areas of southern New Brunswick. The Company has completed construction of a field gathering system, a gas plant, and a pipeline lateral connecting the McCully Field to markets through the Maritimes & Northeast Pipeline (M&NP). The Company initiated natural gas production to M&NP on June 28, 2007 and has a continuous development drilling program underway to add reserves and production capacity as field development expands. Corridor also has a number of potentially high impact exploration projects planned in New Brunswick and elsewhere in eastern Canada.

Contact Information

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