Corridor Resources: no capital spending thanks to fracking moratorium
Corridor Resources annual statement blames hydraulic fracturing moratorium for capital spending freeze
A moratorium was a key campaign promise of Premier Brian Gallant who said the ban on all kinds of hydraulic fracturing in the province will continue until risks to the environment, health and water are understood and a plan to mitigate the impacts is in place.
In the statement Corridor says its natural gas reserves in the McCully Field, near Sussex, are lower than expected.
Corridor says the number of future wells in McCully Field has decreased because of an expected decline in natural gas prices and the announcement of the hydraulic fracturing moratorium in New Brunswick.
The New Brunswick government appointed a three person commission Mar. 24 to study hydraulic fracturing and report back to cabinet within one year on whether conditions can be met.
"Notwithstanding the uncertainty resulting from the moratorium, Corridor will continue to be an advocate for the safe and environmentally responsible development of the shale gas industry for the benefit of our shareholders and the people of New Brunswick," the annual statement says.
In December Corridor Resources CEO Steve Moran said hundreds of jobs in New Brunswick would be affected if the moratorium lasts for a long period of time.
At that time Moran said, "We'll have to move our capital and our expenditures elsewhere. We really don't want to but we'll have no choice."
Corridor has been fracking in McCully Fields for more than ten years and co-owns a pipeline with PotashCorp that carries the fracked gas to the new potash mine in Penobsquis, which employs approximately 450 people.