2010-01-12-2009-12-07-2009-12-07

To buy 50% WI in 116,000 acres in New Brunswick targeting Frederick Brook shale.

Apache Canada Ltd., a subsidiary of Apache Corp., Houston, (NYSE, Nasdaq: APA) has entered into a farm-out and option agreement with Corridor Resources Inc., Halifax, (Toronto: CDH) whereby Apache Canada will earn a 50% working interest in assets in New Brunswick. Apache Canada will appraise and potentially develop oil and gas resources in southern New Brunswick. Apache Canada has committed to a program consisting of any combination of seismic, drilling, fracturing, testing and completing or abandoning one or more horizontal or vertical oil, gas or shale gas wells. The program is to be conducted during the next 18 months at a cost of not less than C$25 million and is intended to evaluate the commercial potential of gas development in the Frederick Brook shale formation and light oil development at the recent Caledonia oil discovery. Apache Canada will earn a 50% working interest in the spacing units drilled. Upon completion of the appraisal program by June 1, 2011, Apache Canada will have the option to elect to conduct a further program which shall consist of any combination of activities including seismic, drilling, fracturing, testing and completing or abandoning appraisal and development wells and the construction of a 20-kilometer gas pipeline from the Elgin area connecting to Corridor's gas plant at McCully Field. If the option is elected, Apache will also purchase at cost a 50% working interest in the Green Road G-41 well and spacing unit, and the purchase price will be part of the expenditure commitment for the option program. This second (optional) phase of activities is to be completed by no later than March 31, 2013 and requires the expenditure of not less than C$100 million. Apache will be operator. Pro forma, Apache will earn a 50% working interest in approximately 116,000 net acres currently held 100% by Corridor. Thereafter, Corridor would be a 50% paying participant in all further activities on the farm-out lands. Corridor president Norm Miller says, "Corridor is pleased to have Apache as an operating partner to help unlock and produce the significant natural gas potential of the Frederick Brook shale formation. We look forward to working closely with Apache on this exciting program."