Corridor Announces Production Optimization Strategy and Guidance for 2017/2018 - Seite 2

Corridor has also entered into separate forward sale agreements for the period from December 1, 2017 to March 31, 2018 to deliver natural gas to the local Maritimes market as opposed to the New England market. These volumes will continue to be sold based on natural gas prices at AGT but will be subject to lower transportation expenses which will result in an estimated increase of approximately $1.2 million in cash flow from operations over the term of the forward sale agreements.

Guidance

Corridor's guidance for the period from December 1, 2017 to March 31, 2018 is as follows:

All dollars in Canadian unless indicated otherwise
AGT average natural gas price	$ US7.40/mmbtu
USD/CAD exchange rate	$ 1.21 USD/CAD
Average natural gas price forecasted on unhedged volumes	$ 9.39/mscf
Average natural gas price on hedged volumes	$ 9.75/mscf
Average daily natural gas production	8.5 mmscfpd

Corridor's guidance for the period from April 1, 2017 to March 31, 2018 is as follows:

All dollars in Canadian unless indicated otherwise
AGT average natural gas price	$ US4.24/mmbtu
USD/CAD exchange rate	$ 1.24 USD/CAD
Average daily natural gas production	2.9 mmscfpd
Field operating netback	$ 7.1 million
Cash flow from operations (1)	$ 4.1 million
Field operating netback per mscf	$ 6.8/mscf
Cash flow from operations (1) per mscf	$ 3.9/mscf
Capital expenditures (for the calendar year 2017)	$ 3.7 million
Working capital estimate (as at March 31, 2018)	$53.5 million

(1)	Cash flow from operations is a non-IFRS measure. Cash flow from operations represents net earnings adjusted for non-cash items including depletion, depreciation and amortization, deferred income taxes, share-based compensation and other non-cash expenses.

"Corridor's production optimization and hedging strategy, combined with a robust strip pricing forecast at AGT and sales to the Maritimes market is expected to result in strong cash flow from operations for the period from December 1, 2017 to March 31, 2018" said Steve Moran, President and CEO of Corridor. "Corridor is in a good financial position with a strong balance sheet currently holding an estimated $50 million of positive working capital. We have been patiently evaluating new opportunities to deploy our working capital. We will continue to be selective in any opportunities we may decide to pursue."