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To: ms.smartest.person who wrote (2798)	9/6/2007 2:39:34 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition September 5, 2007 CORRIDOR RESOURCES (T-CDH) $11.49 +0.80 While many commodities have been enjoying good times, natural gas is one commodity that’s been in the toilet... big time, particularly here in Canada. Costs for much of western Canada remain high, natural gas prices (at least based on the last few years remain in the dumps) and even the Canadian dollar is working against the producers. Many gassy stocks are trading at 20 or 30 cents on the dollar and most are down at least 50%. Standing out in this group is Corridor Resources which is delivering a success story in of all places, Sussex, New Brunswick. They have a few advantages over their western compatriots because the pipeline is relatively short, from New Brunswick to the rich markets of Boston and New York where they receive top dollars for gas and the toll charges for the shorter distance is relatively low. Today they announce some drilling results on their McCully H-76 well and some preliminary McCully F-58 frac results. We have followed this stock for one reason only and that’s because Andy Gustajtis currently with Dominick and Dominick, has suggested it as a play one had to follow, and it’s done surprisingly well moving from $1.50 to $12.00 over the last three years. The key to Corridor now is the Frederick Brook play which Gustajtis says, “underlies the Hiram Brook formation which has now had 25 successful gas wells drilled (with no dusters) and is currently being developed by Corridor.” He suggests, “The Hiram Brook formation will reach production of 50 mmcffpd in the coming year.” He continues, “The chapter on the Frederick Brook has just started and how it will unfold is far from certain. We know from seismic mapping that it covers an area at least three times the size of the Hiram Brook and we also know that it is at least twice as thick.” He continues, “I do not think there is any doubt that the Frederick Brook could contain natural gas in place of 5 tcf or more. The question is, will this shale rock release commercial volumes of natural gas. Today’s press release said YES!” He cautions, “This is very important, it is early and much more work needs to be done, but I think the Corridor story is far from over and worth following closely.” DOW JONES IND. AVERAGE: 13,305.31 -143.55 This chart on the Dow Jones Industrial Average shows that there’s recently been a bump, but it doesn’t really look like a crash. It might feel like a crash and it is certainly getting a lot of press and it’s much better if you didn’t own shares in brokerage houses, banks and the like, but it hasn’t been all that disastrous. We suspect it’s going to be a few months before we get over this financial hiccup because most markets still key on what’s next for the United States. But as far as the big story in today’s American market going into the day it was interesting because one of Bloomberg’s major articles was headlined “Cheapest Stock in almost 12 years Greets Investors,” as the Bloomberg’s article keys on the fact that the industrial companies are trading at 18.4 times earnings lower than their 23.4 average for the decade. The real ugly stuff today was once again, because of real estate mistakes, as it suggested the number of Americans signing contracts to buy previously owned homes in July dropped by the most since records began in 2001, commercial sales weren’t all that healthy either. Interesting but you’ll have to excuse us for thinking the most important article of the day on Bloomberg was something else. The biggest story we thought is India’s Tata Motors is trying to roll out a car that they hope to build and sell for $2,474 an issue. It’s expected that the Indian car market will triple in the next seven years (and all those cars need oil) while Chinese production now hits +7 million units a year in a country that 30 years ago had only a handful of privately owned cars. Right now, China devours more mineral resources in several categories than the United States and even if there is a touch of recession in the U.S, what’s happening in Asia can more than make up for it as more and more Asians reach the middle class and want their fridges, stoves, motorcycles, cars and things made of metal and needing oil that we take for granted in North America. As long as Asia stays healthy, the demand for commodities and commodity prices should remain strong. If you would like to receive the Late Edition, email Debbie at debbie_lewis@canaccord.com