Corridor Resources Inc. Reports Earnings and Production Results for the Third Quarter and Nine Months Ended September 30, 2014; Provides Production and Earnings Guidance for the Year 2014
Nov 12 14
Corridor Resources Inc. reported earnings and production results for the third quarter and nine months ended September 30, 2014. For the quarter, the company reported sales of $2,433,000 against $3,405,000 for the same period of last year. Net loss was $199,000 or $0.002 per share basic and diluted against $1,036,000 or $0.012 per share basic and diluted a year ago. Cash flow from operations was $379,000 against $907,000 a year ago. Capital expenditures were $18,090,000 against $180,000 a year ago.
For the nine months, the company reported sales of $17,778,000 against $15,532,000 for the same period of last year. Net loss was $10,061,000 or $0.112 per share diluted against $1,863,000 or $0.021 per share basic and diluted a year ago. Cash flow from operations was $9,509,000 against $7,972,000 a year ago. Capital expenditures were $20,713,000 against $20,713,000 a year ago.
For the quarter, the company reported natural gas production of 611 mmscf against 718 mmscf a year ago. Natural gas production per day was 6.6 mmscfpd against 7.8 mmscfpd a year ago.
For the nine months, the company reported natural gas production of 1,945 mmscf against 2,233 mmscf a year ago. Natural gas production per day was 7.1 mmscfpd against 8.2 mmscfpd a year ago.
The company has decreased its estimated average net daily gas production for 2014 from 8.0 mmscfpd to 7.3 mmscfpd, as the additional production forecasted from the 2014 well re-entry and fracturing campaign is lower than originally budgeted due to fewer fracture stimulations being completed and the start of the additional production being delayed by approximately one month.
As a result, the company has maintained its budgeted 2014 cash flow from operations of $14 million as the lower natural gas sales recognized in the third quarter of 2014 and the expected decrease in the forecasted 2014 natural gas production are expected to be offset by lower estimated production expenses and a higher estimated average natural gas sales price in the fourth quarter of 2014. The company has decreased its 2014 capital budget from $27.2 million to $25.7 million to reflect the decrease in the estimated cost of the well re-entry and fracturing program. Based on available working capital of $17.3 million at December 31, 2013 and the company revised capital budget of $25.7 million for 2014.
Corridor Resources Inc. Announces the Initial Results of 2014 Capital Program in the Mccully Field and Surrounding Basin in Southern New Brunswick
Oct 28 14
Corridor Resources Inc. announced the initial results of its 2014 capital program in the McCully Field and surrounding basin in southern New Brunswick. The program was designed to increase natural gas production and revenues from the McCully Field and to evaluate the potential of the Frederick Brook shale in the McCully and Elgin areas. The results from the program have demonstrated that the Frederick Brook shale is productive from at least six different sub-intervals across a distance of 25 kilometers. The following is a simplified cross-section of the various wells where Corridor has successfully tested natural gas from the Frederick Brook shale. The focus of this year's program was to utilize existing wellbores that provided the most readily available access to stimulate and produce the Frederick Brook shale and not necessarily the most prospective intervals. Due to the great thickness of the Frederick Brook, there are numerous additional prospective intervals that have not been stimulated to date. Corridor believes the vertical distribution and linear extent of the successful tests is further evidence in support of the best estimate of discovered unrecoverable resources of 67.3 TCF in the Frederick Brook shale by the independent firm GLJ Petroleum Consultants Ltd., which estimate is set fourth in Corridor's Annual Information Form for the year ended December 31, 2013. The company has one long term producing well from the Frederick Brook shale. The F-58 well in McCully was fracture stimulated with water in a single 11 tonne treatment and placed on production in 2008. It is still producing at an estimated average rate of 180 mscf/d with a 1.8% annual decline. To date, F-58 has produced a total of 411 mmscf. The company expects F-58 to recover a total of 1.5 Bscf. Preliminary test data from the 2014 program indicates that the newly fracture stimulated Frederick Brook intervals are initially comparable to F-58.
Strategic Agreement Signed Between Anticosti Hydrocarbons and Gaz Métro to Develop Natural Associated Gas from Anticosti Island
Oct 23 14
Anticosti Hydrocarbons L.P. (Anticosti Hydrocarbons), a limited partnership between Ressources Québec Inc., Pétrolia Inc., Saint-Aubin E&P (Québec) Inc., and Corridor Resources Inc., announce that it has signed a strategic agreement in principle with Gaz Métro Limited Partnership (Gaz Métro) to develop associated natural gas from Anticosti Island. The agreement with Gaz Métro will provide Anticosti Hydrocarbons with access to the expertise of Quebec's leading gas distribution utility and distribution franchise-holder on Anticosti Island to identify economic, operational, and technical solutions to transporting associated natural gas to consumer markets should any be produced in the event hydrocarbon resource production gets underway on Anticosti Island. There are a variety of technical issues to address, including storage, transportation, and distribution of the gas. Subject to compliance with the terms and conditions set forth in the agreement, Gaz Métro will have acquisition rights to any natural gas produced from wells on Anticosti Island and be able to transport or distribute it to the markets, at a price that will allow its marketing while taking into account prevailing prices. In return for Gaz Métro's expertise, Anticosti Hydrocarbons has agreed to an exclusive partnership with Gaz Métro for the next five years.