AGM

J une 19, 2014

Highlights - Introduction
Eastern Canadian E&P Company
with significant upside potential
& sustainability
Three high-impact prospects at
various stages of maturity, total
of ~ 800,000 net acres
McCully production generates
positive cash flow & premium
netbacks
Focused on de-risking plays,
acquiring partners for high-
impact prospects & prudent
financial management as we
demonstrate upside
Corridor is well-positioned:
- No debt
- Working capital (May 2014 ~ $39 M)
- Catalysts for significant upside
Anticosti
330,000 Net Acres
Old Harry
250,000 Net Acres
Southern New
Brunswick
225,000 Net Acres
1
Three High Impact Prospects
Anticosti Macasty shale prospect
has 34 Bboe gross undiscovered
resources of petroleum (best
estimate); Corridor has 21.67%
interest in Anticosti joint venture
Corridors Old Harry offshore
prospect is one of the largest
identified geological structures
offshore NFLD
New Brunswick Frederick Brook
shale
- 67 TCF gross discovered
unrecoverable resources of shale gas
2014 Capital program at McCully
expected to increase production
and further demonstrate FB shale
potential
2
Infrastructure in Place
East Coast
3
Corridor N.B. Assets
Corridors N.B. assets connected to
Boston markets and LNG facility in
N.B.
Premium Netbacks
- Q1 2013 av $7.35
- Q1 2014 av $12.46
50% of base production forward sold
@ US$11.74 for November 2014 to
March 2015
Premiums in Maritimes & Boston to
remain strong through 2018
Potential for East Coast LNG Export
terminal
- Repsols Canaport facility in N.B.
- Pieridaes proposed LNG facility in
Goldboro, N.S.
Ability to source additional
opportunities in the region
- CNG, LNG, Storage, etc.
4
North East Gas Prices
Anticipate elevated premium to Henry Hub for next several years
Anticipate supply short fall for market in Maritimes served by MNP
CNG & demand growth in Maritimes & NE pushing up supply shortfall
Forward Prices based in Platts Gas Daily, May 13, 2014
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Approximately 225,000 net
acres in N.B.
Frederick Brook shale gas:
- 67 TCF gross discovered
unrecoverable resources
Producing ~10 mmcf/d gross
from McCully area
- Hiram Brook gas McCully Field
98.3 BCF 2P gross reserves
- ~25 year reserve life index
(GLJ estimate)
- $1.60 NPV @ 10/SH on 2P
Advancing F.B. Shale potential
through 2014 program
N.B. Government supportive:
- Oil/Gas Env Protection Plan
- New, competitive Royalty Regime
- N.B. Industrial Base
requires supply
McCully/ F.B. Shale Exploration &
Development Area
6
2014 New Brunswick
Completion Program
Goal is to increase production from our
NB operations and prove up
Frederick Brook shale
Re-enter and frac 4 existing wells,
including 6 to 7 shale intervals &
3 Hiram Sand intervals
Tie in wells to the production
gathering system and produce for the
winter season
Also fracture Green Road B-41 well
at Elgin
Program runs from J un to Nov
Seeking to provide additional Frederick
Brook production curves
Total cost of 2014 program $24.5 MM
(includes Green Road, additional workovers
& miscellaneous McCully field work)
Annual decline =1.8%
Produced (01/14) =364 mmscf
EUR =1.2 Bscf
Single 11 tonne water frac
IP =400 mscf/d
F-58 Monthly Production and Forecast
7
Planned Fracture Stimulations
E-67B 3177-3245 m Lower Frederick Brook
E-67B 3102-3170 m Lower Frederick Brook
E-67B 2980-3060 m Upper Frederick Brook
E-67B 2900-2945 m Upper Frederick Brook
J -76 2980-3045 m Upper Frederick Brook
J -76 2870-2940 m Upper Frederick Brook
P-67 2590 m Hiram Brook B Sand
P-76 2670-2735 m Upper Frederick Brook
L-37 2450 m Hiram Brook G Sand
L-37 2727 m Hiram Brook G Sand
B-41 2027-2031 m Upper Frederick
Brook (Elgin)
8
Frederick Brook Shale
Highlights
Proven producibility
- G-41 well IP@ 12 mmcf/d
- F-58 well producing for 5 yrs
@ low decline from small frac
Up to 1100 m in gross
thickness
Upside in overlying sands
O-59 Elgin vertical well has
min 8 frac candidates
Connected to M&NP &
LNG Terminal
J .V. Opportunity for Pilot plant
at Elgin @ $100 to $150 M to
commercialize F.B. play
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Anticosti
Macasty Liquids-Rich Shale Highlights
Over 1.5 million gross acres
licensed (~ 0.3 million net acres)
Thickness of Macasty Shale
ranges from 31 to 92 metres
Large areas within liquids
window
> 4% average TOC
34 billion bboe gross
undiscovered resources (best
estimate)
Similar to Ohio Utica shale
Quebec Govt supports the
responsible development of
hydrocarbons and the
Anticosti J .V. program
underway this summer
10
Anticosti
330,000 Net Acres
Old Harry
250,000 Net Acres
Southern New
Brunswick
225,000 Net Acres
Anticosti Strategic Partnership
$100M Program
58.6%
41.4%
Limited
Partnership
29.3%
20.7%
Limited
Partnership
28.3%
21.7%
Limited
Partnership
21.7% 21.7%
21.7%
35.0%
$1.9M
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Anticosti Exploration Program
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Go / No-Go Decision From Board of Directors Commercial Discovery?
Initial Exploration Program Confirmatory Exploration Program Development Program
P
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o
g
r
a
m
C
o
s
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s
F
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2014: 15-18 core holes
- Objectives: Confirm Macasty shale
characteristics; select drill &
frac locations
Additional multi-frac wells &
feasibility studies
To be determined by the Operating
Committee
2015: 3 multi-frac horizontal wells
- Objectives: Delineate oil/condensate
potential; test 3 wells
Budgeted at $55M, but not to
exceed $60M
A.. Stratigraphic program limited
at $25M
To be determined by Operating
Committee
To be determined by Operating
Committee
$55 - $60 M to be entirely funded
by RQ and M&P
Initial $40-$45M to be funded by
RQ & M&P
Pro rata basis thereafter
Pro rata basis
Old Harry Highlights
One of the largest undrilled geological
structures in Eastern Canada (43,000
acres/67 sq miles) under simple four-way
closure
Several direct hydrocarbon indicators
identified: satellite seepage slicks,
frequency anomalies, amplitude
anomalies, and AVO anomalies
Over 1,000 km of modern 2-D seismic
available
Structures aerial extent and potential
reservoir thickness with 2 target intervals
presents opportunity for billion barrel oil
or multi TCF
gas discovery
Basin Modeling indicates light oil (~55
API) was initially generated and could be
filling the structure
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2
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M
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Old Harry Highlights (contd)
NFLD well currently targeted for
2015/2016, pending approvals
Corridor submitted its Old Harry Exploratory
Drilling Project Description and
Environmental Assessment (E.A.) to the
C-NLOPB in Feb 2011
C-NLOPB updated SEA completed Apr 14; &
it concludes exploration & development
activities can be undertaken
C-NLOPB indicates additional consultation is
required before EA can be completed
Quebec Govt supports exploration of Old
Harry prospect pending completion of
impact studies and negotiations with
Federal Govt in 2015
Exploration programs on the Quebec side
will not proceed until post 2015
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Q1 2014 YTD Netback
Q1 2014 Q1 2013
Netback ($/mscf)
Average gas price $ 16.80 $10.19
Transportation expense $ 1.43 $ 1.23
Royalty expense $ 1.69 $ 0.65
Production expense $ 1.22 $ 0.96
Netback $ 12.46 $ 7.35
Production (mmscfpd) 7.6 8.5
Forward Sale Agreements:
- Nov 14 to Mar 15 average of 4,000 mmbtupd at a price of US$11.74/mmbtu
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Q1 2014 YTD Financial Results
$ in thousands Q1 2014 Q1 2013
Sales $ 11,713 $ 8,114
Cash flow from operations
1
8,073 5,311
Net working capital (cash $21.3M) 24,571 15,075
Net income 4,009 2,529
Net income per share
- Basic and diluted 0.045 0.029
Note: 1
Cash flow from operations is a non-IFRS measure. For a reconciliation to IFRS, see Non-IFRS Financial Measures
in Corridors Q1 2014 MD&A
16
2014 Outlook
17
$ in thousands 2014
Production (mmscfpd) - net 8.0
Revenues $28.0
($/mscf)
Average gas price $9.25
Transportation expense $1.42
Royalty expense $0.50
Production expense $1.45
Netback $5.88
Net G&A $ 3.5
Cash flow from operations
(1)
$ 15.0
Capital expenditures $ 27.2
Net working capital $ 18.6
Note
:
1
Cash flow from operations is a non-IFRS measure. For a reconciliation to IFRS, see Non-IFRS Financial
Measures in Corridors Q1 2014 MD&A
CDH 2-Yr Performance
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Shares outstanding ~ 88 mm
Options outstanding ~ 3.5 mm
Cash position (May 31) $ 37 M
Market Cap (J un 14) $192 M
Social Responsibility
Corridor is engaged in building trust-
based relationships in the communities
where it operates, including:
Building Partnerships: Active member of business
and community groups to further understanding
of the industry
Community Outreach: Liaison Committee,
Ongoing Stakeholder Consultations
Environmental Partnerships: Ducks Unlimited,
Nature Conservancy of Canada, NS Nature
Trust, Kennebecasis Watershed Restoration
Committee
Charitable Donations: over 40 organizations in the
communities where we operate, awards of 30
education scholarships
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Environmental Partnerships
Community
Sponsorship
Community Outreach
Strategic Priorities / Catalysts
Corridor has sustainability combined with excellent upside potential:
Implement 2014 N.B. Program to increase production & further
demonstrate deliverability from F.B. Shale
Maximize cash flow & optimize value of McCully assets including continued
recognition of strong pricing for Corridor production in Boston market
Potential LNG export facilities located in N.B. (Repsol) and N.S. (Pieridae)
emphasize Corridors strategic location advantage and promote
commercialization of Frederick Brook Shale
Progress on Anticosti J .V. 2-year program; undertake extensive coring
program in Summer/Fall 2014 and 3 well drill and frac program
planned for 2015
Focus on advancing Corridors high impact prospects by sourcing J .V.
arrangements & using CDH working capital
Maintain licenses for Corridors high impact prospects
Continue to advance government and stakeholder relations, social
responsibility and regulatory agendas in various jurisdictions
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Disclaimer
Forward Looking Information Disclosure
This presentation contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of
Canadian securities laws. All statements other than statements of historical fact are forward-looking statements. Forward-looking information typically contains statements with words
such as "anticipate", "believe", "plan", "continuous", "estimate", "expect", "may", "will", "project", "should", or similar words suggesting future outcomes. I n particular, this
presentation contains forward-looking statements pertaining to the following: the potential and characteristics of its properties; business plans and strategies; potential for LNG export;
ability to source additional opportunities; the quantity of natural gas, oil and natural gas liquids reserves and resources; support and treatment under governmental regulatory
regimes; exploration and development plans and the cost of such plans; estimates of production, revenues, average gas price, transportation expense, production expense, netback,
net G&A, cash flow from operations, capital expenditures, net working capital; and projected elevated premiums.
Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown
risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not
occur. There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized. Actual results will differ, and the
difference may be material and adverse to the Company and its shareholders. Forward-looking statements are based on the Company's current beliefs as well as assumptions made
by, and information currently available to, the Company including information concerning anticipated financial performance, business prospects, strategies, regulatory developments,
future natural gas and oil commodity prices, exchange rates, future natural gas production levels, the ability to obtain equipment in a timely manner to carry out development
activities, the ability to market natural gas successfully to current and new customers, the impact of increasing competition, the ability to obtain financing on acceptable terms, the
ability to add production and reserves through development and exploration activities and the terms of agreements with third parties. Although management considers these
assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Unknown risks and uncertainties include, but are not limited to: risks
associated with oil and gas exploration, substantial capital requirements and financing, prices, markets and marketing, government regulation, third party risk, environmental,
hydraulic fracturing, dependence on key personnel, co-existence with mining operations, availability of drilling equipment and access, risks may not be insurable, variations in
exchange rates, expiration of licenses and leases, reserves and resources estimates, development and/or acquisition of oil and natural gas properties, trading of common shares,
seasonality, competition, management of growth, conflicts of interest, issuance of debt, title to properties and hedging. Further information regarding these factors and additional
factors may be found under the heading "Risk Factors" in the Annual Information Form for the year ended December 31, 2012. Readers are cautioned that the foregoing list of factors
that may affect future results is not exhaustive.
Certain of the forward-looking statements in this presentation may constitute "financial outlooks" as contemplated by National I nstrument 51-102 Disclosure Obligations, including
information related to the Henry Hub forward price and forecast average premium of Corridor , under the heading 2014 Outlook on Silde #17, which is provided for the purpose of
estimating Corridors future revenues, net working capital and cash flow from operations for 2014. Please be advised that the financial outlook in this presentation may not be
appropriate for purposes other than the one stated above.
The forward-looking statements contained in this presentation are made as of the date hereof and the Company does not undertake any obligation to update publicly or to revise any
of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary
statement.
Oil and Gas Disclosure
The term "boe" refers to barrels of oil equivalent. All calculations converting natural gas to crude oil equivalent have been made using a ratio of six mscf of natural gas to one barrel
of crude equivalent. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of six mscf of natural gas to one barrel of crude oil equivalent is based on an
energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
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Disclaimer, (contd)
Resources Disclosure
"discovered resources" is that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of
discovered petroleum initially-in-place includes production, reserves, and contingent resources; the remainder is unrecoverable.
"undiscovered resources" refers to those quantities of petroleum that are estimated, on a given date, to be contained in accumulations yet to be discovered. The recoverable portion
of undiscovered petroleum initially-in-place is referred to as prospective resources, the remainder as unrecoverable. Undiscovered resources carry discovery risk. There is no certainty
that any portion of these resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. A recovery
project cannot be defined for this volume of undiscovered petroleum initially-in-place at this time.
"discovered unrecoverable petroleum initially-in-place", the equivalent of "discovered unrecoverable resources", refers to that portion of discovered petroleum initially-in-place which
is estimated, as of a given date, not to be recoverable by future development projects. A portion of these quantities may become recoverable in the future as commercial
circumstances change or technological developments occur; the remaining portion may never be recovered due to the physical/chemical constraints represented by subsurface
interaction of fluids and reservoir rocks;
Resources do not constitute, and should not be confused with, reserves. Actual reserves and resources will vary from the reserve and resource estimates, and those variations could
be material. There is no certainty that it will be economically viable to produce any portion of the resources.
The resources assessment referred to in Slides #2 & #6 was completed by GLJ Petroleum Consultants Ltd. effective J une 1, 2009, as modified on March 25, 2014, setting forth
certain information regarding discovered unrecoverable resources of Corridor's interests in the Frederick Brook shale formation. The best estimate is the value that best represents
the expected outcome with no optimism or conservatism. There is no certainty that it will be commercially viable to produce any portion of these discovered resources.
The reserves estimates referred to in Slide #6 was prepared by GLJ dated February 12, 2014 with an effective date of December 31, 2013 and a preparation date of February 12,
2014 setting forth certain information relating to certain natural gas, crude oil and natural gas liquids reserves of Corridor properties, specifically the McCully Field and the Caledonia
Field, and the net present value of the estimated future net reserves associated with such reserves.
The resources assessment referred to in Slides #2 and #10 was prepared by Sproule Associates Limited effective J une 1, 2011, as modified November 19, 2013, setting forth certain
information regarding total petroleum initially-in-place of the Macasty shale formation on Anticosti I sland. The best estimate reflects the probability that the quantity actually in place
is equal to or greater than the estimate is 50%. These resources are reported as Bboe to reflect uncertainty of hydrocarbon type across the island. A recovery project cannot be
defined for this volume or undiscovered resources. There is no certainty that any portion of these resources will be discovered. If discovered, there is no certainty
that it will be commercially viable to produce any of these resources.
For further information on Corridor's resources and reserves, see the Annual Information Form for the year ended December 31, 2013.
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