Click here to close now.

Welcome!

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.

Contacts:
Phillip R. Knoll, President
Corridor Resources Inc.
(902) 429-4511
(902) 429-0209 (FAX)
www.corridor.ca

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
Enterprises are turning to the hybrid cloud to drive greater scalability and cost-effectiveness. But enterprises should beware as the definition of “policy” varies wildly. Some say it’s the ability to control the resources apps’ use or where the apps run. Others view policy as governing the permissions and delivering security. Policy is all of that and more. In his session at 16th Cloud Expo, Derek Collison, founder and CEO of Apcera, explained what policy is, he showed how policy should be arch...
Countless business models have spawned from the IaaS industry. Resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his General Session at 16th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, broke down what we've got to work with and discuss the benefits and pitfalls to discover how we can best use them to d...
"We have seen the evolution of WebRTC right from the starting point to what it has become today, that people are using in real applications," noted Dr. Natasha Tamaskar, Vice President and Head of Cloud and Mobile Strategy and Ecosystem at GENBAND, in this SYS-CON.tv interview at WebRTC Summit, held June 9-11, 2015, at the Javits Center in New York City.
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Com...
SYS-CON Events announced today that Harbinger Systems will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Harbinger Systems is a global company providing software technology services. Since 1990, Harbinger has developed a strong customer base worldwide. Its customers include software product companies ranging from hi-tech start-ups in Silicon Valley to leading product companies in the US a...
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the...
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
"CenturyLink brings a full suite of services to the table and that enables us to be an IT service provider," explained Jeff Katzen, Director of the Cloud Practice at CenturyLink, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises ar...
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, it is now feasible to create a rich desktop and tuned mobile experience with a single codebase, without compromising performance or usability.
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
"In the IoT space we are helping customers, mostly enterprises and industry verticals where time-to-value is critical, and we help them with the ability to do faster insights and actions using our platform so they can transform their business operations," explained Venkat Eswara, VP of Marketing at Vitria, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
In the midst of the widespread popularity and adoption of cloud computing, it seems like everything is being offered “as a Service” these days: Infrastructure? Check. Platform? You bet. Software? Absolutely. Toaster? It’s only a matter of time. With service providers positioning vastly differing offerings under a generic “cloud” umbrella, it’s all too easy to get confused about what’s actually being offered. In his session at 16th Cloud Expo, Kevin Hazard, Director of Digital Content for SoftL...