Corridor Resources Inc.

Corridor Resources Inc.

June 16, 2008 08:09 ET

Corridor Receives Positive Response to Salt Springs Storage Open Season

HALIFAX, NOVA SCOTIA--(Marketwire - June 16, 2008) - Corridor Resources Inc. (TSX:CDH) announced today that it has received encouraging responses to its Open Season request for interest in natural gas storage at its Salt Springs prospect located between Sussex and Saint John in southern New Brunswick. The results indicate that there is sufficient interest to justify the initial development of at least one storage cavern with working gas capacity of 3.0 to 3.5 billion cubic feet of natural gas and with sufficient injection/withdrawal capacity to justify a pipeline connection between the storage cavern and Corridor's existing pipeline system at McCully as well as the necessary upgrading of Corridor's pipeline connection with the Maritimes & Northeast Pipeline.

Corridor is considering the next steps towards the development of the Salt Springs prospect, including a more detailed design of the cavern, water supply and brine disposal systems, above ground facilities and the required pipeline infrastructure. These engineering studies will allow Corridor to more fully develop construction costs and associated service rates and to begin the environmental studies necessary to start the permitting process with the Province of New Brunswick. Further information regarding the potential development of this prospect will be provided as it becomes available.

The Salt Springs prospect also has the potential for storage of liquid petroleum products and for storing strategic reserves of oil, providing greater energy security for Atlantic Canadians.

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 Quebec and offshore in the Gulf of St. Lawrence. Corridor currently has reserves of natural gas at only one property, the McCully Field near Sussex, 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.

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 relating to the potential development of the Salt Springs prospect, a pipeline connection between such storage cavern and Corridor's existing pipeline system and upgrading of Corridor's pipeline connection.

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. There is no assurance that the Salt Springs prospect will be developed. Forward-looking statements are based on Corridor's current beliefs as well as assumptions made by, and information currently available to, Corridor concerning obtaining the necessary financing, whether from a joint venture partner or otherwise, market demand for a natural gas storage facility, and regulatory developments. 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 include, but are not limited to financial risks, substantial capital requirements, government regulation, environmental, prices, markets and marketing, expiration of licenses and leases and competition. Additional risk factors may be found under the heading "Risk Factors" in Corridor's Annual Information Form for the year ended December 31, 2007 and in Corridor's most recent financial statements, management's discussion and analysis, management information circular, material change reports and news release. Readers are cautioned that the foregoing list of factors that may affect future results is not exhaustive.

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.

Contact Information

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