Halifax-based Corridor Resources Inc. (TSX:CDH) says it has suspended exploratory work on the Old Harry project in the Gulf of St. Lawrence for the foreseeable future.
In a news release issued Monday, the company says it has completed a geotechnical analysis and has determined that it wouldn’t be “prudent” to continue with additional capital spending, and as a result is suspending all further technical work and expenditures.
READ: Review of proposal to drill Old Harry site in Gulf of St. Lawrence put on hold
The Old Harry site is located about 80 kilometres off the southwest tip of Newfoundland in an area that straddles the Newfoundland and Labrador-Quebec border, and has been previously thought to hold significant oil and gas reserves.
But Corridor says its analysis has determined more complexity than previously suggested.
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The company says it now believes the prospect could be more “gas prone than oil prone” and the overall quantities could be less than originally estimated.
Corridor says it has determined that a three-dimensional seismic survey should be conducted before an exploration well is drilled, and adds that it has been unable to attract a joint venture partner.