HALIFAX, NOVA SCOTIA–(Marketwired – June 3, 2016) – Corridor Resources Inc. (“Corridor”) (TSX:CDH) wishes to comment on the May 27, 2016 Government of New Brunswick’s decision to continue a moratorium on hydraulic fracturing for an indefinite period.
Corridor is profoundly disappointed with this decision.
Corridor has always believed in the hydrocarbon potential of New Brunswick. It has operated safely and responsibly in New Brunswick since 1998, and proudly stands behind its health and safety track record. During that time, Corridor has worked collaboratively with several governments, both Liberal and Progressive Conservative, and has earned strong support for its continued business operations in the Sussex, Penobsquis and Elgin communities.
Since its inception, Corridor and its partners have invested over $500 million dollars of risk capital in New Brunswick exploring for oil and natural gas. It has drilled 40 wells, completed 109 fracture stimulations, and has constructed and operates a gas plant and 50 kilometres of pipeline. Corridor and its partners have paid over $20 million in royalties to the Government of New Brunswick and another $6.5 million to local landowners and municipalities.
Corridor recently advised the Government of our intention to spend approximately $70 million in new capital drilling and completing 11 development wells from 2018 to 2021, assuming the moratorium was lifted in the near term. This capital program is now postponed indefinitely, as are efforts to recruit a joint venture partner to conduct further exploration to unlock the vast potential of the Frederick Brook shale.
Corridor has always widely promoted the hydrocarbon potential of New Brunswick and, with the initial moratorium announcement, Corridor accepted the challenge to promote greater public education and awareness of the practice of hydraulic fracture stimulation. Accordingly, Corridor led the establishment of an education program under the auspices of the New Brunswick Responsible Energy Development Alliance (http://nbnaturalgas.ca). We are grateful for the support of many organizations in this endeavor, including but not limited to, the Atlantic Chamber of Commerce, the Saint John, Moncton and Fredericton Chambers of Commerce, Miramichi Valley Business Association, the Canadian Manufacturers and Exporters, and Spark (formerly the Metal Working Association of New Brunswick). The most recent independent public opinion polls conducted in New Brunswick indicate a majority of New Brunswickers support hydraulic fracturing.
Corridor is currently contemplating its next steps in light of the New Brunswick Government’s decision to continue the moratorium on fracturing indefinitely. As part of this process, Corridor will assess the impact of this decision on its business, operations and financial condition, which will include consultation with its independent reserves evaluators to assess the extent of the impact on Corridor’s oil and gas reserves.
Corridor is a 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 a shale gas prospect in New Brunswick, an offshore conventional hydrocarbon prospect in the Gulf of St. Lawrence and an unconventional hydrocarbon prospect through a 21.67% interest in Anticosti Hydrocarbons L.P., a joint venture which has undiscovered resources on Anticosti Island, Québec.
