Corridor Resources Inc.

Corridor Resources Inc.

March 30, 2007 16:25 ET

Corridor Announces Year End Earnings and Filing of 2006 Annual Information Form

HALIFAX, NOVA SCOTIA--(CCNMatthews - March 30, 2007) - Corridor Resources Inc. (TSX:CDH) announced today a net loss of $268 thousand for the four month period ended December 31, 2006 compared to net earnings of $56 thousand for the year ended August 31, 2006. Corridor's loss per share was $0.004 for the four month period ended December 31, 2006 compared to earnings per share of $0.001 for the year ending August 31, 2006. The decrease in earnings primarily reflects a decrease in the price of natural gas sold to the local potash mill owned by Potash Corporation of Saskatchewan Inc. and to higher general and administrative expense as the Company continues to increase management resources in preparation for commencement of natural gas production to Maritimes & Northeast Pipeline in June. The Corporation recently changed its financial year end from August 31 to December 31 to be consistent with most reporting issuers in the oil and gas industry.

Corridor also announced today that it has filed its Annual Information Form for the four month period ended December 31, 2006, 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

Corridor's natural gas reserves, as assessed by APA Petroleum Engineering Inc. (APA) and Petrel Robertson Ltd. (Petrel) of Calgary, reflect the changes in proven (P) reserves and proven plus probable (P+P) reserves between August 31, 2006 and December 31, 2006 for the Hiram Brook formation. The recent availability of 3-D seismic across most of the McCully structure has made it possible for APA and Petrel to make an initial evaluation of McCully reserves and resource potential in the Hiram Brook formation across most of the McCully structure. The December 31, 2006 assessment also included a significant adjustment in the portion of the gross reserves that are net to Corridor's interest. Gross proven reserves have increased from 63.8 bcf to 67.8 bcf (from 36.3 bcf to 41.3 bcf net to Corridor). Gross proven plus probable reserves have increased from 124.3 bcf to 182.9 bcf (from 70.9 bcf to 143.1 bcf net to Corridor). Gross proven plus probable plus possible reserves (P+P+P) have been assessed at 281.6 bcf (222.3 bcf net to Corridor). Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. The assessment assumes only a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.

As part of this independent assessment, the gross proved plus probable gas-in-place in the Hiram Brook formation was assessed at 722 bcf, and the gross proved plus probable plus possible gas-in-place was assessed at 1281 bcf. The assessment assumes only a 10% probability that the gas-in-place estimate will equal or exceed the sum of proved plus probable plus possible estimate of gas-in-place.

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. Corridor is in the latter stages of constructing a field gathering system, a gas plant, and a pipeline lateral to connect the McCully Field to markets through the Maritimes & Northeast Pipeline (M&NP). Corridor plans to initiate natural gas production to M&NP by June 2007, at a planned initial gross rate of 35 mmscf/day (63% net to Corridor), 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.

Forward Looking Statements

This press release contains certain forward looking statements relating to, but not limited to, Corridor's operations, anticipated financial performance, business prospects and strategies, including expectations relating to production levels; capital expenditure programs; the quantity of natural gas reserves; projections of market prices; projections of costs; supply and demand for natural gas; expectations regarding the ability to raise capital and to continually add to reserves through exploration and development; treatment under governmental regulatory regimes; and expectations regarding the construction of the necessary midstream facilities to connect the McCully Field to the M&NP. These statements are based on current expectations that involve numerous assumptions regarding factors and risks that could cause actual results to vary materially, including, without limitation to, the following factors: risks associated with oil and gas exploration, financial risks, substantial capital requirements, bank financing, delay in construction of midstream facilities, government regulation, environmental, prices, markets and marketing, dependence on key personnel, dependence on Potash Corporation of Saskatchewan, Inc., availability of drilling equipment and access, risks may not be insurable, management of growth, expiration of licenses and leases, reserves estimates, seasonality, competition, conflicts of interest, Kyoto Protocol, issuance of debt, title to properties and hedging. There is no representation by Corridor that actual results achieved will be the same in whole or in part as those set out in the forward looking information. Furthermore, the forward looking statements contained in this press release are made as of the date hereof, and Corridor undertakes no obligation, except as required by applicable securities legislation, to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Corridor Resources Inc.
    Norman W. Miller
    902-429-0209 (FAX)