Hydro-Québec has agreed to make a payment to Corridor in the amount of $500,000. in order to secure an option to earn a minimum of 18.75% working interest in the farmout lands covering the Old Harry and Cape Ray prospects. Corridor will provide Hydro-Québec with access to modern seismic and reprocessed older seismic data related to the farmout lands.
Terms for the farmout will be finalized when an agreement is reached with one or more other participants, one of whom will act as operator for the farmout lands. Corridor will remain the operator of the farmout lands until a formal farmout agreement is concluded with an operating participant.
Corridor holds Quebec exploration permits and Newfoundland offshore exploration licences in the Laurentian Channel region covering and in the vicinity of the Old Harry and Cape Ray prospects, and is seeking federal licences coincident with the Québec Old Harry licenses.
Corridor and Hydro-Québec will work diligently and cooperatively together in an effort to secure all requisite approvals for Corridor to drill an initial exploratory well on the Québec side of the Old Harry prospect.
"This partnership is strategic for Hydro-Québec given the large estimated potential of the Old Harry and Cape Ray structures", said Jean A. Guérin, Vice President - Oil and Gas Exploration at Hydro-Québec.
"We are pleased to have the support of Hydro-Québec in our efforts to open up the large potential oil and natural gas resources of the Gulf of St. Lawrence", said Norm Miller, President of Corridor Resources Inc.
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