UPDATE

J ANUARY 2014
Highlights - I ntroduction
Eastern Canadian E&P Company
with enormous upside potential
& sustainability
Three high-impact prospects at
various stages of maturity
McCully production generates
positive cash flow & premium
netbacks
Focused on de-risking plays,
acquiring partners for high-
impact prospects & sustainability
as we demonstrate upside
Corridor is well-positioned:
- No debt
- Working capital (J an 2014 ~ $20M)
- Catalysts for significant upside
- Quebec & New Brunswick
Governments support development
Anticosti
900,000 Net Acres
Old Harry
250,000 Net Acres
Southern New
Brunswick
225,000 Net Acres
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I nfrastructure in Place
East Coast
3
Eastern Canada Focused
Large, relatively unexplored area
with significant potential
Commanding land position of
~1.4 million net acres in Eastern
Canada
Licenses for high-impact
prospects range from ~3-7 yrs +
Gas production from McCully
Field in N.B. provides high
netbacks and positive cash flow
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Three High I mpact Prospects
Anticosti Macasty shale prospect
has 20 Bboe net undiscovered
resources of petroleum (best
estimate); promising results from
2012 core program
Corridors Old Harry offshore
prospect is one of the largest
identified geological structures
offshore NFLD
New Brunswick Frederick Brook
shale
- 67 TCF gross discovered resources of
shale gas (best estimate)
2014 Program at McCully
expected to increase production
and further demonstrate FB shale
potential
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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
- Q4 2013 av ~$5.50
Premiums in Maritimes & Boston
to remain strong through 2017
Potential for LNG Export terminal
at Repsols Canaport LNG facility
optimum East Coast LNG export
option & 10 BCF storage
Reposol feasibility studies
underway
Ability to source additional
opportunities in the region
- CNG, LNG, Storage, etc.
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Over 225,000 net acres in N.B.
Frederick Brook shale gas:
- 67 TCF gross (59 TCF net)
discovered resources
(best estimate)
Producing up to 11 mmcf/d
gross from McCully area
- Hiram Brook gas McCully Field
94.5 BCF 2P gross reserves
- ~25 year reserve life index
(GLJ estimate)
Advancing F.B. Shale potential
through 2014 frac programs
at McCully
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
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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 (~0.9
million net acres)
Thickness of Macasty
Shale ranged from 31 to
92 metres on 3 coreholes
drilled in 2012 program
Large areas within
liquids window
20 billion bboe net
undiscovered resources
(best estimate)
Similar to Ohio
Utica shale
Depth 2300 6500 feet
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Anticosti
900,000 Net Acres
Old Harry
250,000 Net Acres
Southern New
Brunswick
225,000 Net Acres
Anticosti
Macasty Shale Oil Large Untested
Liquids
Schlumberger analysis
indicates 6% effective
porosity with 80% S
oil
Coreholes show 4%
average TOC
Additional frac analysis
on-going to design &
optimize program
Quebec Govt support of
exploration/ development
on Anticosti
Next stage includes:
- Appraisal program to
demonstrate production
$50 - $60 M
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Old Harry Highlights
One of the largest undrilled
geological structures in Eastern
Canada (43,000 acres/67 sq miles) under
simple four-way closure
Several direct hydrocarbon indicators
identified: satellite seepage slicks,
frequency anomalies, amplitude
anomalies, and AVO anomalies
Over 1,000 km of modern 2-D
seismic available
Structures aerial extent and
potential reservoir thickness presents
huge opportunity for billion barrel oil
or multi TCF gas discovery
Basin Modeling indicates light oil (~55
API) was initially generated and could
be filling the structure
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Anticosti
900,000 Net Acres
Old Harry
250,000 Net Acres
Southern New
Brunswick
225,000 Net Acres
Old Harry Prospect Highlights
Potential for good primary
reservoir in Bradelle Formation
Very thick secondary reservoir,
Brion Island Formation
Thick light-oil source rock
NFLD exploration well targeted for
2015/2016, pending approvals
Corridor has identified drilling
assets available in the 2015-2016
window
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Old Harry Regulatory Summary
Corridor submitted its Old Harry Exploratory
Drilling Project Description and Environmental
Assessment (E.A.) to the C-NLOPB in February
2011
C-NLOPB & Federal Energy Dept required a
Strategic Environmental Assessment (SEA) for
NFLD side of Gulf; expected early 2014
Corridors E.A. and drilling permits can be
completed in 2014
Due to lengthy regulatory processes, Corridor has
been granted extension of drilling window (Phase I
of licence) to J an 2017 for well spud
The Quebec and Federal Governments signed an
accord in Mar 2011 to jointly regulate the offshore
on Quebecs side of the Gulf
Quebec has completed SEA and is expected to
decide on opening sections of Quebec side of the
Gulf for oil and gas activities in 2014
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Q3 2013 YTD Netback
Q3 2013 Q3 2012
Netback ($/mscf)
Average gas price $ 6.49 $3.53
Transportation expense $ 1.27 $1.23
Royalty expense $ 0.22 $ -
Production expense $ 1.04 $0.92
Netback $ 3.96 $1.38
Production (mmscfpd) 8.2 9.0
Q1 2013 average gas price: $10.19, netback: $7.35
Forward Sale Agreements:
- Nov 13 to Mar 14 average of 3,000 mmbtupd at a price of US$9.03/mmbtu
- J an 14 Feb 14 average of 2,400 mmbtupd at a price of US$15.50/mmbtu
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Q3 2013 YTD Financial Results
$ in thousands Q3 2013 Q3 2012
Sales $ 15,532 $ 9,833
Cash flow from operations
1
7,823 2,024
Net working capital (cash $14.2M) 16,190 9,061
Net income/(loss) 1,863 (5,866)
Net income/(loss) per share
- Basic and diluted 0.021 (0.066)
Notes: 1
Cash flow from operations is a non-IFRS measure. For a reconciliation to IFRS, see Non-IFRS Financial Measures
in Corridors Q3 2013 MD&A
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Strategic Priorities
Advance three high impact prospects by sourcing J .V. arrangements
& with CDH working capital
Implement 2014 program for additional production at McCully from both
Hiram Brook and F.B. Shale
Maximize cash flow and ensure we optimize value of McCully assets
Maintain licenses for Corridors high impact prospects
Promote export potential for LNG from Atlantic Canada using existing
infrastructure and location advantages as well as other opportunities such
as CNG that will promote commercialization of F.B. Shale
Continue to advance regulatory approvals and social licenses for Corridor
prospects in various appropriate jurisdictions
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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, J anuary 24, 2014
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CDH 2-Yr Performance
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Shares outstanding ~ 88 mm
Options outstanding ~ 3.5 mm
Cash position (12/2013) $ 16 M
Market Cap $120 M
Summary & Catalysts
Corridor has excellent upside potential combined with sustainability
Focus on de-risking high-impact prospects & maintaining cash flow from
McCully assets
Corridor is well positioned to capitalize on its potential catalysts, including:
- Advancing J .V. arrangements on high-impact prospects
- Implementation of 2014 McCully program to increase production; further
demonstrating deliverability of Frederick Brook Shale
- Continued recognition of strong pricing signals for Corridor production
sold into Boston market
- Progress on LNG export facilities located in N.B. and N.S.
- Advancing regulatory permitting process for Corridors prospects
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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. In particular, this
presentation contains forward-looking statements pertaining to the following: the potential and characteristics of its properties; business plans and strategies; increased production
and results from the 2014 program at McCully; 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; 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 North East Gas Prices on Silde #17, which is provided for the
purpose of estimating Corridors future revenues and cash flow for 2014 and 2015. 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.
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 #5 & #7 was completed by GLJ Petroleum Consultants Ltd. effective J une 1, 2009 setting forth certain information regarding
discovered 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 , GLJ subsequently reviewed the pertinent data collected between J une 1, 2009 and December 31, 2012 in the upper part of the Frederick Brook formation, and made
no changes to the original estimates as at December 31, 2012. 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 #7 was prepared by GLJ dated February 28 2013 with an effective date of December 31, 2012 and a preparation date of February 28,
2013 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 #5 and #9 was prepared by Sproule Associates Limited effective J une 1, 2011 setting forth certain information regarding total
petroleum initially-in-place of Corridors interests in the Macasty shale formation on Anticosti Island. The best estimate reflects the probability that the quantity actually in place is
equal to or greater than the estimate is 50%. Sproule subsequently reviewed the pertinent data collected between J une 1, 2011 and December 31, 2012, and has made no changes
to the original resource estimates provided in the Sproule Anticosti Reserves Report. 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, 2012.
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