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Message: NR..its no longer just the Utica shale...frederick is on the map...Apache is in

NR..its no longer just the Utica shale...frederick is on the map...Apache is in

posted on Dec 07, 2009 06:31PM

HALIFAX, NOVA SCOTIA--(Marketwire - Dec. 7, 2009) - Corridor Resources Inc. ("Corridor")(TSX:CDH) announced today that it has entered into a farmout and option agreement ("Agreement") with Apache Canada Ltd. ("Apache") to appraise and potentially develop oil and natural gas resources in southern New Brunswick. Under the terms of the Agreement, Apache has committed to conduct an appraisal program consisting of any combination of seismic, drilling, fracturing, testing and completing or abandoning one or more horizontal or vertical oil, gas and/or shale gas wells. The program is to be conducted over the next 18 months at a cost of not less than $25 million and is intended to evaluate the commercial potential of natural gas development in the Frederick Brook shale formation and light oil development at the recent Caledonia oil discovery. Upon completion of this program, Apache will have earned a 50% working interest in the spacing units drilled.

Upon completion of the appraisal program described above, on or before June 1, 2011, Apache will have the option to elect to conduct a further program which shall consist of any combination of activities including seismic, drilling, fracturing, testing and completing or abandoning appraisal and development wells and the construction of a 20 kilometer natural gas pipeline from the Elgin area connecting to Corridor's natural gas plant at the McCully Field. If the option is elected, Apache will also purchase at cost a 50% working interest in the Green Road G-41 well and spacing unit, and the purchase price will be part of the expenditure commitment for the option program. This second (optional) phase of activities is to be completed by no later than March 31, 2013 and requires the expenditure of not less than $100 million. Apache will be the Operator for all activities undertaken pursuant to the Agreement.

Upon completion of this program, Apache would earn a 50% working interest in approximately 116,000 net acres currently held 100% by Corridor. Thereafter, Corridor would be a 50% paying participant in all further activities on the farmout lands (please refer to the map below outlining the lands subject to this Agreement). The farmout lands exclude Corridor's interests in the McCully Lands as shown on the map: http://media3.marketwire.com/docs/Farmout_Lands.jpg.

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