Corridor Comments on Recent Quebec Government Statements Regarding Oil and Gas Exploration and Development on Anticosti Island
HALIFAX, NOVA SCOTIA--(Marketwired - Dec. 23, 2015) - Corridor Resources Inc. ("Corridor") (TSX:CDH) wishes to provide a brief comment on recent statements made in the media regarding hydrocarbon exploration and development on Anticosti Island.
By way of background, on April 1, 2014, Corridor announced the establishment of the Anticosti joint venture with Pétrolia Inc. ("Petrolia"), Ressources Québec, (a subsidiary of Investissement Québec, an affiliate of the Government of Québec) ("RQ") and Maurel & Prom S.A., inclusive of its subsidiary, Saint-Aubin E&P Québec Inc. ("M&P"). The forgoing parties formed the Anticosti Hydrocarbons L.P. (the "Anticosti L.P.") with the purpose of appraising and potentially developing hydrocarbon resources on Anticosti Island. Corridor has a 21.67% partnership interest in the Anticosti joint venture.
The agreements governing the Anticosti L.P. provide that RQ and M&P will spend up to $100 million in two phases. Phase 1 consists of an initial program budgeted at $55.0 million and not to exceed $60.0 million. Phase 2, consisting of the remaining $40.0 to $45.0 million, is to be undertaken only upon a favorable decision of the board of directors of the general partner of the Anticosti L.P.
Over the past week, there have been several statements made by the Premier of Québec to the effect that he is not in favor of the development of hydrocarbons on Anticosti Island and that he is willing to face the financial consequences of pulling out of the project and cancelling the contracts with the companies. To date, neither Corridor nor Anticosti L.P. has received any correspondence or notice from the Québec Government regarding these statements.
As a result of the Government's statements, Corridor is undertaking a comprehensive review in order to understand the potential implications of such statements to 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. In addition, Corridor has discovered unrecoverable resources in Elgin, New Brunswick and a 21.67% interest in Anticosti Hydrocarbons, a joint venture which has undiscovered resources on Anticosti Is land, 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. These statements include statements regarding programs to be undertaken by Anticosti L.P., the financing of such programs, and Corridor's plans in respect to the Anticosti L.P.
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 agreements governing the Anticosti joint venture and Corridor's current beliefs as well as assumptions made by, and information currently available to, Corridor including information concerning business prospects, strategies, regulatory developments, and the ability to add production and reserves through development and exploration activities and the terms of agreements with third parties, such as the Anticosti joint venture. 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, 2014.
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.
(December 23, 2015 - 8:00 AM EST)
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