News Feed Item

Corridor Announces 2013 Year End Results

HALIFAX, NOVA SCOTIA -- (Marketwired) -- 03/25/14 -- (TSX: CDH) - Corridor Resources Inc. ("Corridor") announced today its 2013 year end financial results. Corridor's annual financial statements, management's discussion and analysis and Annual Information Form for the year ended December 31, 2013 have been filed on SEDAR at www.sedar.com and are available on Corridor's website at www.corridor.ca.

All amounts referred to in this press release are in Canadian dollars unless otherwise stated.

2013 Highlights

--  On February 13, 2014, the Company entered into a non-binding letter of
    intent with the Government of Quebec, through its affiliates
    Investissement Quebec and Ressources Quebec ("RQ"), Petrolia Inc.
    ("Petrolia") and Etablissements Maurel & Prom S.A. ("M&P") to create a
    joint venture that will appraise and potentially develop hydrocarbon
    resources on Anticosti Island, Quebec. The letter of intent calls for
    Petrolia and Corridor to transfer their interests in the Anticosti
    licenses to the Anticosti joint venture and for RQ and M&P to spend up
    to $100 million on an exploration program starting in 2014. As a result
    of this transaction, Corridor will hold an interest of 21.7% in the
    Anticosti joint venture and receive net cash proceeds of approximately
    $13.9 million on the closing of the transaction which is expected to
    occur no later than April 30, 2014, subject to the satisfaction of
    closing conditions.

--  Corridor maintains approximately 2 million gross acres (approximately
    1.3 million net acres) of undeveloped land in connection with its three
    high impact exploration prospects (Frederick Brook shale gas prospect in
    New Brunswick, Macasty Formation unconventional oil prospect on
    Anticosti Island and Old Harry conventional hydrocarbon prospect in the
    Gulf of St. Lawrence). Corridor is seeking joint venture partners for
    its Frederick Brook shale and Old Harry prospects.

--  Corridor's netback for 2013 increased to $4.23/mmbtu from $1.88/mmbtu in
    2012 mainly as a result of higher natural gas sales prices in the New
    England market.

--  Cash flow from operations increased to $10,934 thousand for the year
    ended December 31, 2013 from $4,595 thousand for the year ended December
    31, 2012 due to the higher average natural gas prices in 2013.

--  The premiums for the natural gas prices realized by Corridor as compared
    to the Henry Hub natural gas prices averaged $US3.19/mmbtu for the year
    ended December 31, 2013 compared to $US1.10/mmbtu for the year ended
    December 31, 2012.

"We are pleased with our 2013 year end results including increased cash flow from operations resulting from impressive premiums and netbacks for our New Brunswick production" said Phillip Knoll, President and Chief Executive Officer of Corridor. "Our recently announced letter of intent for our Anticosti Island prospect and our planned 2014 capital program in New Brunswick continue to demonstrate that Corridor offers investors significant potential upside in value. Corridor is well positioned to take advantage of the strategic infrastructure connecting our New Brunswick resources to these markets, and possesses the sustainability, with no outstanding debt, to advance Corridor's three high impact prospects in Eastern Canada."

Year End Financial Results

The following table provides a summary of Corridor's financial and operating results for the three and twelve months ended December 31, 2013 with comparisons to the three and twelve months ended December 31, 2012.

Selected Financial Information

                                 Three months ended     Twelve months ended
                                        December 31             December 31
thousands of dollars except
 per share amounts                  2013       2012         2013       2012
Sales                            $ 6,087    $ 4,962     $ 21,619   $ 14,795
Net income (loss)               $ 20,586  $ (42,023)    $ 22,449  $ (47,889)
Net income (loss) per share
 - basic and diluted             $ 0.233   $ (0.475)     $ 0.254   $ (0.541)
Cash flow from operations(1)     $ 2,962    $ 2,431     $ 10,934    $ 4,595
Capital expenditures             $ 1,856    $ 1,195      $ 3,138    $ 3,763
Total assets                   $ 181,262  $ 157,978    $ 181,262  $ 157,978
(1) Cash flow from operations is a non-IFRS measure. Cash flow from
operations represents net earnings adjusted for non-cash items including
depletion, depreciation and amortization, deferred income taxes, share-based
compensation and other non-cash expenses. See "Non-IFRS Financial Measures"
in Corridor's management's discussion and analysis for the year ended
December 31, 2013.

Financial Summary for 2013

--  Natural gas revenues for the year ended December 31, 2013 increased to
    $20,346 thousand from $13,345 thousand for the year ended December 31,
    2012 due to an increase in the average natural gas sales price to
    $6.91/mscf in 2013 from $4.05/mscf in 2012 which increase was partially
    offset by a decrease in Corridor's average daily gas production to 8.1
    mmscfpd in 2013 from 9.0 mmscfpd in 2012. However, the decrease in
    natural gas production in 2013 was mitigated by field optimization
    efforts during the year which has lessened the rate of decline
    previously experienced and has resulted in an increase in the ultimate
    recovery of natural gas from the McCully Field.

--  During the year, Corridor began to sell its natural gas production using
    the Algonquin city-gate ("AGT" or "Algonquin") pricing point instead of
    the Dracut pricing point as the Dracut sales hub is no longer actively
    traded. Corridor expects that natural gas prices, net of the additional
    transportation charge, will be representative of New England market
    prices, which are expected to continue to be strong compared with Henry
    Hub. The premium to Henry Hub realized in 2013 averaged $US3.19/mmbtu
    for the year ended December 31, 2013 compared to $US1.10/mmbtu for the
    year ended December 31, 2012.

--  As at December 31, 2013, Corridor had cash and cash equivalents of
    $15,514 thousand, net working capital of $17,296 thousand and no
    outstanding debt.

--  Corridor's net income increased to $22,449 thousand for the year ended
    December 31, 2013 from a net loss of $47,889 thousand for the year ended
    December 31, 2012 due primarily to the reversal of impairment losses of
    $28,050 thousand for the year ended December 31, 2013 which resulted
    from an increase in forecast natural gas prices used to determine the
    recoverable amount of the Company's New Brunswick assets. An impairment
    loss of $56,325 thousand had been recognized for the year ended December
    31, 2012.

Q4 2013 Netback Analysis

                                 Three months ended     Twelve months ended
                                        December 31             December 31
thousands of dollars except
 $/mscf                            2013        2012        2013        2012
Natural gas revenues            $ 5,841     $ 4,604    $ 20,346    $ 13,345
Royalty expense                    (247)        (50)       (740)        (58)
Transportation expense             (973)     (1,037)     (3,799)     (4,074)
Production expense               (1,034)       (715)     (3,362)     (2,982)
Netback                         $ 3,587     $ 2,802    $ 12,445     $ 6,231

Natural gas production
 (mmscf)                            712         818       2,945       3,293
Natural gas production per
 day (mmscfpd)                      7.7         8.9         8.1         9.0

Natural gas revenues
 ($/mscf)                        $ 8.21      $ 5.63      $ 6.91      $ 4.05
Royalty expense ($/mscf)          (0.35)      (0.06)      (0.25)      (0.02)
Transportation expense
 ($/mscf)                         (1.37)      (1.27)      (1.29)      (1.24)
Production expense ($/mscf)       (1.45)      (0.87)      (1.14)      (0.91)
Netback ($/mscf)                 $ 5.04      $ 3.43      $ 4.23      $ 1.88

Corridor's netback for Q4 2013 increased to $5.04/mmbtu from $3.43/mmbtu in Q4 2012 as a result of higher natural gas sales prices in the New England market.

Natural gas revenues increased to $5,841 thousand in Q4 2013 from $4,604 thousand in Q4 2012 due to the increase in the average natural gas sales price to $8.21/mscf in Q4 2013 from $5.63/mscf in Q4 2012 which increase was partially offset by the decrease in the average daily natural gas production to 7.7 mmscfpd in Q4 2013 from 8.9 mmscfpd in Q4 2012. However, the decrease in natural gas production in Q4 2013 was mitigated by field optimization efforts during the quarter.

The increase in the royalty expense to $247 thousand for Q4 2013 from $50 thousand in Q4 2012 is due to the higher natural gas revenues in Q4 2013.

Transportation expense decreased to $973 thousand for Q4 2013 from $1,037 thousand for Q4 2012 due to the decrease in natural gas production, which decrease was partially offset by a stronger U.S. dollar, additional interruptible transportation at a higher cost and a new transportation charge on the Algonquin pipeline to access the new Algonquin city-gate pricing point.

Net production expense for Q4 2013 increased to $1,034 thousand from $715 thousand for Q4 2012 due to a workover program conducted at the McCully Field in Q4 2013 and increased costs related to the well optimization efforts.

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 Quebec and offshore in the Gulf of St. Lawrence. Corridor currently has natural gas production and reserves in the McCully Field near Sussex, New Brunswick and crude oil reserves in the Caledonia Field near Sussex, New Brunswick. In addition, Corridor has contingent resources and discovered unrecoverable resources in Elgin, New Brunswick and undiscovered resources on Anticosti Island, Quebec where Corridor has ongoing exploration projects.

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 characteristics of Corridor's properties; the potential upside in value to shareholders; exploration and development plans (including the 2014 capital program); plans to solicit joint venture partners; the Anticosti joint venture, including closing of the joint venture and exploration plans of the joint venture; and natural gas sales prices and premiums.

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 the terms of the Anticosti joint venture letter of intent and 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 commodity prices, 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. 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, 2013.

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.

Phillip R. Knoll, President
Corridor Resources Inc.
(902) 429-4511
(902) 429-0209 (FAX)

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Virgil consists of an open-source encryption library, which implements Cryptographic Message Syntax (CMS) and Elliptic Curve Integrated Encryption Scheme (ECIES) (including RSA schema), a Key Management API, and a cloud-based Key Management Service (Virgil Keys). The Virgil Keys Service consists of a public key service and a private key escrow service. 

WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, will discuss the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docke...
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
SYS-CON Events announced today that Coalfire will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Coalfire is the trusted leader in cybersecurity risk management and compliance services. Coalfire integrates advisory and technical assessments and recommendations to the corporate directors, executives, boards, and IT organizations for global brands and organizations in the technology, cloud, health...
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. In the eyes of many, containers are at the brink of becoming a pervasive technology in enterprise IT to accelerate application delivery. In this presentation, you'll learn about the: The transformation of IT to a DevOps, microservices, and container-based architecture What are containers and how DevOps practices can operate in a container-based environment A demonstration of how Docke...