Corridor Resources Inc. announced an update to its 2015 operations.
Corridor has decided to shut-in certain of its producing natural gas wells for the period from May 1, 2015 to October 31, 2015. The estimated average production from these wells is approximately 5 mmscf/d for such period. Corridor will continue to produce the wells it jointly owns with Potash Corporation of Saskatchewan Inc. in order to meet PotashCorp's short-term natural gas demands for its Picadilly and Penobsquis mines.
In reaching this decision, Corridor considered the significant differential in the sale price of natural gas expected for the summer of 2015 relative to the winter of 2015/16. Currently, the average futures strip pricing for Algonquin city-gates during the 2015 summer period (i.e. May to October) is approximately $US2.70/mmbtu. Conversely, the average futures strip pricing for Algonquin city-gates during the 2015/16 winter period (i.e. November 2015 to March 2016) is approximately $US10.20/mmbtu. In addition, as previously announced, Corridor entered into a forward sale agreement for the 2015/16 winter period for 2,500 mmbtu per day of natural gas production (approximately 2.3 mmscf per day) at an average price of $US9.25/mmbtu.