Corridor Resources Inc.

Corridor Resources Inc.

October 15, 2009 07:58 ET

Corridor Prepares to Fracture the Frederick Brook Formation at the Green Road G-41 Well

HALIFAX, NOVA SCOTIA--(Marketwire - Oct. 15, 2009) - Corridor Resources Inc. (TSX:CDH) reported today that it is preparing to conduct two propane fracs in the upper part of the Frederick Brook formation at the Green Road G-41 (vertical) well. The well is located approximately 20 kilometers east of the McCully gas plant and 4 kilometers north of the village of Elgin in southern New Brunswick. The first of the two fracs is to be conducted in a black shale interval at a depth between 2000 and 2050 meters. The second frac is to be conducted at a depth between 1850 and 1900 meters in a silty interval of the formation containing thin interbeds of sandstone. The fracturing operations are planned to be conducted later this month, immediately followed by flow testing of the well. Initial results from these operations are expected to be made available by early November. Encouraging results from these operations may lead to the drilling of an adjacent horizontal well (including multi-stage fracturing and flow testing operations) in 2010.

A map is available at the following address:

In other operations, Corridor is continuing to flow test the recently completed McCully L-38 and P-47 wells. The wells are currently producing in-line to the gas plant at constrained rates in the range of 5 to 6 mmscf/day each to assess their respective longer term flow performances. The two wells each exhibited initial production capacities of approximately 10 mmscf/day based on initial flow test results (reported by Corridor in a press release dated September 9, 2009). However, in the case of the P-47 well, early pressure response suggests the well may decline at a more rapid rate than normal for most McCully wells. The field is currently producing at an average gross rate of approximately 28 mmscf/day (23 mmscf/day net to Corridor, with the McCully J-38, D-67 and N-66 wells temporarily suspended for workover operations.

Corridor is a junior resource company engaged in the exploration for and development and production of petroleum and natural gas onshore in New Brunswick, Prince Edward Island and Quebec and offshore in the Gulf of St. Lawrence. Corridor currently has reserves of natural gas at only one property, the McCully Field near Sussex, New Brunswick. In June 2007, Corridor completed the construction of a field gathering system, a gas plant and a pipeline lateral connecting the McCully Field to markets through the Maritimes & Northeast Pipeline.

Forward Looking Statements

This press release 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 press release contains forward-looking statements pertaining to the following: work-over program, initial production capacity, projected production levels and plans to fracture the Frederick Brook formation at the Green Road G-41 well.

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. These factors include, but are not limited to: risks associated with oil and gas exploration, financial risks, substantial capital requirements, bank financing, government regulation, environmental, prices, markets and marketing, issuance of debt, variations in exchange rates and hedging. Further information regarding these factors may be found under the heading "Risk Factors" in Corridor's annual information form for the year ended December 31, 2008 and its most recent management's discussion and analysis. Readers are cautioned that the foregoing list of factors that may affect future results is not exhaustive. 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 Corridor and its shareholders.

Forward-looking statements are based on Corridor's current beliefs as well as assumptions made by, and information currently available to, Corridor 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, and the ability to add production and reserves through development and exploration activities. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. The forward-looking statements contained in this press release are made as of the date hereof and Corridor 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.

Contact Information

  • Corridor Resources Inc.
    Norman W. Miller
    902-429-0209 (FAX)