HALIFAX, NOVA SCOTIA--(Marketwire - Feb. 22, 2011) - Corridor Resources Inc. (News - Market indicator) announced today that it has submitted to the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) a Project Description for the drilling of an exploration well on the Old Harry prospect within Exploration Licence 1105 located in the Laurentian Channel of the Gulf of St. Lawrence in the Newfoundland and Labrador offshore area. This Project Description, submitted pursuant to the Canadian Environmental Assessment Act, commences the official regulatory process for obtaining the necessary approvals to drill the offshore well between mid-2012 and early 2014.
"We are very excited to commence the approval process for the Old Harry exploration program; this is a prospect that warrants exploration. This well is an essential step in the evaluation of the Old Harry prospect, which offers significant hydrocarbon potential and associated benefits for Eastern Canada," said Phil Knoll, CEO of Corridor Resources.
The Old Harry geological structure is approximately 30 kilometers long and 12 kilometers wide and has the potential to contain significant volumes of hydrocarbon resources. It is one of the largest undrilled geological structures in Eastern Canada. Corridor previously completed an extensive work program to identify the proposed well location on the western side of Exploration Licence 1105, which included the collection and interpretation of 2-D seismic data in 1998 and 2002, as well as a geohazard site survey in October, 2010. Studies have indicated that the Gulf of St. Lawrence holds significant potential for hydrocarbon exploration; to date, only 10 offshore wells have been drilled in this vast, under-explored area.
Corridor will ensure that this exploration program meets or exceeds all environmental, safety and operational regulations established under the robust Canadian regulatory regime.
A map of the location of Exploration Licence 1105 on the Old Harry Prospect is available at the following address: http://media3.marketwire.com/docs/corridor_map_0222.jpg
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 Québec and offshore in the Gulf of St. Lawrence. Corridor currently has reserves of natural gas at the McCully Field near Sussex, New Brunswick and shale gas resources in the adjacent Elgin sub-basin. In December 2009, Corridor entered a joint venture to appraise and potentially develop its significant shale gas resources in the Elgin area.
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 the following: the potential for hydrocarbon resources in the Old Harry structure, the proposed drilling of an exploration well on the Old Harry prospect, the timing of such drilling and compliance with Canada's regulatory regime.
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. These factors include, but are not limited to: risks associated with oil and gas exploration, financial risks, substantial capital requirements, bank financing, government regulation, environmental, prices, markets and marketing, issuance of debt, variations in exchange rates and hedging. Further information regarding these factors may be found under the heading "Risk Factors" in Corridor's annual information form for the year ended December 31, 2009 and its most recent management's discussion and analysis, copies of which are available at www.sedar.com. Readers are cautioned that the foregoing list of factors that may affect future results is not exhaustive. There can be no assurance that the plans, intentions or expectations upon which forward-looking statements, including receipt of the requisite regulatory approvals, are based will in fact be realized. Actual results will differ, and the difference may be material and adverse to Corridor and its shareholders. In particular, there can be no assurance that drilling of the exploration well will be completed as contemplated or at all.
Forward-looking statements are based on Corridor's 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 and oil commodity prices, exchange rates, 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, the impact of increasing competition, the ability to obtain financing on acceptable terms, and the ability to add production and reserves through development and exploration activities. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. 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.
