Tuesday, August 5, 2008

Corridor Resources Relinquishes Gas Exploration Permits

The Permits have changed hands
Original came from Journaliste: Hélène Fauteux
Translated by Wynn Currie
Updates have been added:

Petrol prospectors from Montreal, Gastem Inc., have taken over the dormant gas exploration license for the territory of the Magdalen Islands. The permit that was held by Corridor Resources Inc. from Halifax, for 10 years, was let go three months ago. The president of Gastem Inc., Marc-André Lavoie, estimated that there were many trillions of square cubic feet in gas reserves ,that were found on the flanks of the salt domes, of the Archipelago.

Gastem Inc., who's value in grants is 150 million dollars, has actually proceeded to update the seismic information that had been accomplished on the islands in the past, in order to determine its gas exploration strategy. Marc-André Lavoie, doesn't anticipate, nevertheless, a drilling forage before 2009 or 2010. According to the president of Gastem, Inc. the drilling of an exploration well on the islands is evaluated between five and seven million dollars, including an extra million dollars for the transport of equipment. Mr. Lavoie, who plans a visit to the Archipelago in September, is said to want to work in partnership with the Magdalen population.

Precisions were made that Corridor Resources Inc. conserve its exploration rights at the marine site of Old Harry, off the islands; and this is because of a moratorium imposed by the government of Quebec in 1998, on all gas and petroleum activities in the Gulf.

Gastem Inc. is an oil and gas exploration and development company with exploration properties covering more than a million acres, located in the St. Lawrence Lowlands and the Gaspé Peninsula in Quebec. Gastem Inc is also involved in earn-in projects in Quebec (the Joly Project). In January 2008, the Company signed an earn-in option for Utica shale properties situated in New York State. The company also has a working interest in 24 gas wells currently in production in the Amber Bank project, West Virginia.

The company was incorporated under the Canada Business Corporations Act in 2002 and listed on the TSX-Venture Exchange in January 2004 (GMR, TSX-Vx).

More on the Old Harry Site:

The Corporation holds Québec exploration licenses covering 123,550 gross acres (123,550 net acres) over most of the Old Harry prospect, lying in 1500 feet of water in the Laurentian Channel in Québec. Corridor acquired 800 kilometres of modern seismic data across and in proximity to this structure in 1998. The prospect has simple 4-way closure covering an area of more than 20,000 hectares, and is one of the largest undrilled prospects in Eastern Canada. Recoverable reserves potential is estimated to be in the order of 1.5 to 2 billion barrels (if oil) or 4 to 5 tscf (if gas). Six natural oil seeps have been detected on the ocean surface by satellite, apparently emanating from the flanks of "Old Harry". The prospect lies mostly in the Québec sector and partly in the Newfoundland sector of the Gulf, and requires agreement between the Québec and Federal governments in order to open up this prospective area of the Gulf to petroleum exploration. Corridor held an exploration license issued by the Canada-Newfoundland Offshore Petroleum Board across the northeastern side of the Old Harry prospect (31,068 ha) located in the Newfoundland sector of the Gulf. In December 2002, Corridor completed the acquisition of 500 kilometres of marine 2D seismic across the northeastern end of the Old Harry and adjacent Cape Ray prospect. On January 15, 2005, Corridor's license covering the Cape Ray prospect in Newfoundland and Labrador expired. On January 15, 2006, Corridor's Newfoundland and Labrador license covering the eastern end of the Old Harry prospect expired.

In August 2003, Corridor announced the execution of an option agreement with Hydro-Québec whereby Hydro-Québec paid $500,000 to Corridor for the right to obtain a minimum of 18.75% working interest in the Old Harry farmin opportunity on the same terms as are ultimately negotiated with an operating partner. Hydro-Québec also gained access to the seismic covering the Old Harry and Cape Ray prospects.

Corridor has suspended farmout discussions with a number of major companies that have expressed an interest in participating in drilling the Old Harry structure pending the outcome of discussions between the Federal and Québec governments regarding the management of offshore activities in the Québec sector of the Gulf. Corridor continues to press the Federal and Québec governments for a resolution of the issues preventing exploration drilling in the Québec sector of the Gulf of St. Lawrence. These same issues have also negatively impacted Corridor's ability to attract a partner to participate in drilling an exploration well on the Magdalen Islands and Corridor surrendered these licenses in March 2007. No assurance can be given that this issue will be resolved to the satisfaction of Corridor or that such resolution will occur within a reasonable period of time.

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