Corridor Resources Inc.
TSX : CDH

Corridor Resources Inc.

December 23, 2014 08:00 ET

Corridor Completes Additional Forward Sale Resulting in Strong First Quarter 2015 Pricing

HALIFAX, NOVA SCOTIA--(Marketwired - Dec. 23, 2014) - Corridor Resources Inc. ("Corridor") (TSX:CDH) announced today that it has entered into the following forward natural gas sale agreement:


Period
Volume
(mmbtu/d)
Price
($US/mmbtu)
January 2015 2,000 $12.47
February 2015 1,000 $12.52
March 2015 1,000 $ 8.65

This sale, combined with the previous forward sale announced on February 3, 2014 for 4,000 mmbtu per day from November 1, 2014 to March 31, 2015, will result in an average hedged price of $US11.68/mmbtu for an average 5,344 mmbtu per day (approximately 5 mmcf/d) for the first quarter of 2015. Corridor's remaining production will be sold at daily market prices in the New England markets.

"This forward sale agreement further demonstrates the exceptional premiums that Corridor's production can obtain during peaking periods in the New England market. This forward sale agreement will result in strong cash flow from operations for Corridor's first quarter of 2015" said Steve Moran, President and CEO of Corridor.

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 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 and crude oil reserves in the Caledonia Field near Sussex, New Brunswick. In addition, Corridor has contingent resources and discovered unrecoverable resources in Elgin, New Brunswick and has a 21.67% interest in 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: expected production, natural gas prices, natural gas sales, netback from sales, cash flow from operations in 2015; premiums in the New England markets; and the ability to access such markets.

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 the terms of Corridor's two forward sale agreements and its 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 market natural gas successfully to current and new customers and the impact of increasing competition. 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, 2013.

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.

Certain of the forward-looking statements in this press release may constitute "financial outlooks" as contemplated by National Instrument 51-102 Disclosure Obligations, including information related to expected netback for Q1 2015 relating to the forward sale agreement which is provided for the purpose of forecasting the financial position of Corridor in Q1 2015. Please be advised that the financial outlook in this press release may not be appropriate for purposes other than the one stated above.

Contact Information

  • Steve Moran, President and CEO
    Corridor Resources Inc.
    (902) 429-4511
    (902) 429-0209 (FAX)
    www.corridor.ca