Corridor Resources Inc -
Corridor Resources to drill Magdalen Islands natural gas prospect
Corridor Resources Inc
CDH
Shares issued 22,380,696
1999-06-04 close $0.89
Monday Jun 7 1999
Mr. Norman Miller reports
Corridor Resources Inc. has signed a farm-out agreement with Foothills Minerals
Inc. of Tampa, Fla., to undertake exploration drilling on Corridor's Magdalen
Islands permits in the Gulf of St. Lawrence. Under the terms of the farm-out
agreement, Foothills has paid Corridor $100,000 (U.S.) in cash and will finance
75 per cent of the cost of an initial "slim hole" exploration well in order to earn a
25-per-cent working interest in Corridor's Magdalen licences. Subject to
receiving required approvals from Quebec Natural Resources, the well will be
drilled on shore near Fatima on Cap-aux-Meules to a planned depth of 8,000 feet
(2,438 metres) at an estimated cost of $720,000 (Canadian), commencing in late
August of this year. Corridor will finance 25 per cent of the well cost and will
operate the well.
Upon completion of the initial well, Foothills will have the option until Dec. 1,
2000, to earn an additional 25-per-cent working interest in the licences by
financing 75 per cent of the cost of a second conventional earning well to be
drilled on the licences up to a total estimated cost of $1.4-million (U.S.).
Corridor's Magdalen licences cover an area of 285,000 acres on the Magdalen
Islands and adjacent waters. |
