Corridor Updates Elgin Shale Gas Appraisal Well and Announces Third Quarter Results

HALIFAX, NOVA SCOTIA--(Marketwire - Nov. 14, 2011) - (TSX:CDH) - Corridor Resources Inc. ("Corridor") reported today an update on the Elgin shale gas appraisal well and announced its third quarter financial results.

ELGIN SHALE GAS APPRAISAL WELL

Corridor has completed the drilling of the vertical Corridor Will DeMille O-59 shale gas appraisal well to a total depth of 3188 meters measured depth. Initial interpretation indicates the well intersected 990 meters of measured thickness (approximately 860 meters true thickness) of the Upper Frederick Brook, intersecting the contact with the underlying Lower Frederick Brook at 3160 meters. This Upper Frederick Brook shale interval is hundreds of meters thicker than any Upper Frederick Brook section encountered in New Brunswick to date.

Based upon initial analysis of well log information, the well intersected at least eight shale intervals with significantly elevated gas shows and organic shale, in addition to one 13 meter thick sandstone with good gas shows and visible porosity toward the top of the Upper Frederick Brook. Corridor plans to evaluate these intervals with logs and sidewall cores in order to select a number of intervals for future fracture stimulation. The Upper Frederick Brook shale in the present well can be correlated with confidence to the adjacent Will DeMille G-59 horizontal well and the Corridor Green Road G-41 well located 3.5 km to the northeast. The Will DeMille G-59 horizontal well also exhibited strong gas shows and is significantly over-pressured (13.7 kpa/m or 0.61 psi/ft).

Corridor is planning to stimulate the potential intervals using liquid propane in the second quarter of 2012. This fracture stimulation technique proved to be successful in the Green Road G-41 well as reported in previous press releases. Corridor is very pleased with the results to date from the Will DeMille O-59 shale gas appraisal well. The completion of this well is part of Corridor's ongoing program to advance a shale gas pilot project in the Elgin area.

Corridor continues to provide information to interested parties pursuant to its previously announced processes to seek joint venture partners for its Frederick Brook shale and Old Harry prospects.

Q3 2011 FINANCIAL RESULTS

The following table provides a summary of Corridor's financial and operating results for the three and nine months ended September 30, 2011, with comparisons to the three and nine months ended September 30, 2010. Corridor's financial statements and management's discussion and analysis for the third quarter 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 September 30				Nine months ended September 30
thousands of dollars except per share amounts	2011		2010(1)		2011		2010(1)
Revenues	$5,127		$5,471		$18,698		$21,694
Net loss	$(2,348	)	$(1,739	)	$(8,169	)	$(3,874	)
Net loss per share - basic and diluted	$(0.027	)	$(0.020	)	$(0.092	)	$(0.044	)
Cash flow from operations(2)	$1,665		$1,929		$7,179		$9,665
Capital expenditures	$3,050		$7,366		$4,628		$19,698
Total assets	$295,392		$307,434		$295,392		$307,434

(1)	As restated under International Financial Reporting Standards ("IFRS"). See "First Time Adoption of IFRS" in Corridor's MD&A for the nine months ended September 30, 2011.
(2)	Cash flow from operations is a non-IFRS measure. Cash flow from operations represents cash flow provided by operating activities excluding the change in non-cash operating working capital. See "Non-IFRS Financial Measures" in Corridor's MD&A for the nine months ended September 30, 2011.

Highlights

• During Q3 2011, natural gas production averaged 11.1 mmscfpd net to Corridor (including production from penalty wells) with an average natural gas sales price of $4.63/mscf. During the nine months ended September 30, 2011, the natural gas production averaged 11.8 mmscfpd with an average natural gas sales price of $5.45/mscf.

• Natural gas revenues for Q3 2011 decreased to $4,722 thousand from $5,021 thousand for Q3 2010 due to the decrease in the average natural gas sales price to $4.63/mscf in Q3 2011 from $4.96/mscf in Q3 2010. The natural gas production of 11.1 mmscfpd in Q3 2011 was fairly consistent with the production in Q3 2010 of 11.0 mmscfpd as the production declines in 2011 were offset by the gas plant shut-down in Q3 2010 to allow for the installation of an inlet compressor. Natural gas revenues decreased for the nine months ended September 30, 2011 to $17,583 thousand from $20,259 thousand for the nine months ended September 30, 2010 due to a reduction in the average daily production to 11.8 mmscfpd for the nine months ended September 30, 2011 from 13.2 mmscfpd for the nine months ended September 30, 2010. In addition, the average natural gas sales price realized decreased slightly to $5.45/mscf from $5.63/mscf for the nine months ended September 30, 2010 due to the lower natural gas sales prices at Henry Hub and a stronger Canadian dollar. However, this was offset by higher premiums at Dracut which have doubled year over year to approximately US$1.00/mmbtu for the nine months ended September 30, 2011.

• The cash flow from operations for the three and nine months ended September 30, 2011 was $1,665 thousand and $7,179 thousand compared to $1,929 thousand and $9,665 thousand for the three and nine months ended September 30, 2010 with cash and cash equivalents at September 30, 2011 of $7,367 thousand. The decrease in cash flow from operations for these periods is due to the lower natural gas revenues partially offset by lower transportation expenses.

Q3 2011 Netback Analysis

	Three months ended September 30				Nine months ended September 30
thousands of dollars except $/mscf	2011		2010		2011		2010
Natural gas revenues	$4,722		$5,021		$17,583		$20,259
Royalty expense	(223	)	(29	)	(679	)	(350	)
Production expense	(999	)	(821	)	(3,217	)	(2,915	)
Transportation expense	(1,268	)	(1,478	)	(4,318	)	(5,042	)
Netback	$2,232		$2,693		$9,369		$11,952
Natural gas production (mmscf)	1,020		1,012		3,228		3,596
Natural gas production per day (mmscfpd)	11.1		11.0		11.8		13.2
Natural gas revenues ($/mscf)	$4.63		$4.96		$5.45		$5.63
Royalty expense ($/mscf)	(0.22	)	(0.03	)	(0.21	)	(0.10	)
Production expense ($/mscf)	(0.98	)	(0.81	)	(1.00	)	(0.81	)
Transportation expense ($/mscf)	(1.24	)	(1.46	)	(1.34	)	(1.40	)
Netback ($/mscf)	$2.19		$2.66		$2.90		$3.32

Natural gas revenues decreased to $4,722 thousand in Q3 2011 from $5,021 thousand in Q3 2010 due to the decrease in the average natural gas sales price to $4.63/mscf in Q3 2011 from $4.96/mscf in Q3 2010. The average daily natural gas production was fairly consistent at 11.1 mmscfpd in Q3 2011 compared to 11.0 mmscfpd in Q3 2010 due to the gas plant shut-down in Q3 2010 for the installation of an inlet compressor aimed at increasing the production at the McCully Field.

The increase in the royalty expense per mscf for Q3 2011 to $0.22/mscf from $0.03/mscf in Q3 2010 is due to a settlement of $188 thousand reached with the New Brunswick Department of Finance in connection with an audit of the Company's crown royalty payments for the periods from April 2003 to October 2009.

Net production expense for Q3 2011 increased to $999 thousand from $821 thousand for Q3 2010 due to the increase in work-over activities and the increase in utilities expense resulting from the addition of an inlet compressor late in Q3 2010.

Transportation expense decreased to $1,268 thousand for Q3 2011 from $1,478 thousand for Q3 2010 due to a transportation agreement in effect since Q2 2011 to purchase 12,000 mmbtu per day of transportation on the Canadian side of the M&NP from April 1, 2011 to April 1, 2012 at a cost significantly lower than firm tolls. Transportation expense also decreased due to the decrease in natural gas production and a stronger Canadian dollar as compared to the U.S. dollar.

2011 Outlook

Corridor has decreased its estimate of the average daily net production for 2011 from 12.0 mmscfpd to 11.5 mmscfpd as less field activities were conducted at the McCully Field in 2011 than originally planned. As a result, Corridor's 2011 budget for revenues has decreased slightly from approximately $25 million to $24 million based on an estimated average natural gas sales price of $5.35/mscf for Q4 2011.

Corridor is forecasting cash flow from operations of $8,200 thousand for 2011 and a net positive working capital position of approximately $6 million at December 31, 2011 with no outstanding debt.

During Q3 2011, Corridor increased its 2011 capital budget from $8,000 thousand to $10,900 thousand. The net increase of $2,900 thousand in the capital expenditure program consists mainly of the following:

• Drilling the O-59 Will DeMille shale gas appraisal well to further work on the Frederick Brook shale in the Elgin area of New Brunswick, for a net increase of $5,500 thousand.
• Less field activities being conducted at the McCully Field, for a net reduction of $1,500 thousand.
• Delay in the Sally's Brook core hole drilling, north of the McCully Field, due to equipment not being available in the area, for a net reduction of $1,000 thousand.

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, Prince Edward Island and Québec and offshore in the Gulf of St. Lawrence. Corridor currently has natural gas reserves and production 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 and discovered resources of shale gas in Elgin, New Brunswick.

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 business plans and strategies, the process to attract joint venture partners for the Old Harry project and the Frederick Brook shale and the fracture stimulation of the Will DeMille O-59 shale gas appraisal well, the advancement of the Elgin shale gas pilot project, estimates of natural gas production and prices, revenue, cash flow from operations and working capital.

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 Corridor's current beliefs as well as assumptions made by, and information currently available to, Corridor concerning the characteristics of the Frederick Brook shale, business prospects, strategies, regulatory developments, future natural gas commodity prices, future natural gas production levels, the ability to obtain equipment in a timely manner to carry out development activities, the ability to market natural gas successfully to current and new customers. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Unknown risks and uncertainties include, but are not limited to risks associated with oil and gas exploration, financial risks, substantial capital requirements, bank financing, government regulation, environmental, prices, risks may not be insurable and reserves and resources estimates. Further information regarding these factors and additional factors may be found under the heading "Risk Factors" in Corridor's Annual Information Form for the year ended December 31, 2010.

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.