HALIFAX, NOVA SCOTIA–(Marketwired – July 28, 2016) – Corridor Resources Inc. (“Corridor”) (TSX:CDH) wishes to provide a brief comment on recent developments regarding oil and gas exploration on Anticosti Island.
By way of background, on April 1, 2014, Corridor announced the establishment of the Anticosti joint venture with Pétrolia Inc., Ressources Québec, a subsidiary of Investissements 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 foregoing parties formed the Anticosti Hydrocarbons L.P. (the “Anticosti L.P.”) with the purpose to appraise and potentially develop hydrocarbon resources on Anticosti Island. Corridor has a 21.67% partnership interest.
On July 12, 2016, Pétrolia Inc. subsidiaries, Pétrolia Anticosti Inc. (operator for Anticosti L.P.) and Investissements PEA (a partner of the Anticosti L.P.) (collectively, Pétrolia) filed an injunction application with the Québec Superior Court seeking an order requiring RQ and M&P to comply with their contractual obligations in respect of Anticosti L.P., including that RQ and M&P make payments to Pétrolia, as the operator of Anticosti L.P., to fund the planned drilling program for three horizontal wells on Anticosti Island to be completed during the summer of 2016.
On July 22, 2016, the Court partially allowed the application but declined to order RQ and M&P to fund the planned drilling program at this time. Rather, the Court ordered RQ and M&P to advance to Pétrolia the funds necessary to maintain the employees dedicated to Anticosti L.P. until May 31, 2017 and build the drilling locations for the three wells chosen for the planned drilling program.
As a result of the Court’s decision and other developments, Corridor believes it is unlikely that Anticosti L.P.’s planned drilling program will be undertaken in 2016.
Corridor believes the delays in undertaking Anticosti L.P.’s planned 2016 drilling program are the direct result of comments by the Premier of Québec, who has repeatedly spoken out in opposition in the media against the exploitation of oil and gas on Anticosti Island. Corridor is reviewing its options to ensure the value of its investment in Anticosti L.P. is protected.
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 with undeveloped lands on Anticosti Island, Québec.