Corridor Resources Inc.

Corridor Resources Inc.

January 05, 2005 09:47 ET

Corridor Provides Update on McCully Farmout Discussions


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CORRIDOR RESOURCES INC.

TSX VENTURE SYMBOL: CDH

JANUARY 5, 2005 - 09:47 ET

Corridor Provides Update on McCully Farmout Discussions

HALIFAX, NOVA SCOTIA--(CCNMatthews - Jan. 5, 2005) - Corridor Resources
Inc. (TSX VENTURE:CDH) announced today that it is continuing farmout
discussions with a prospective partner interested in participating with
Corridor in the further development of the McCully natural gas field
located near Sussex in south central New Brunswick. These discussions
have taken an extended amount of time as a result of the complexity of
the issues and the number of parties involved, and there is no assurance
at this time that a deal will ultimately be consummated. Recently, a
second party has commenced reviewing Corridor's McCully data with a view
to making a farmin proposal. An update on McCully farmout activities
will be provided when significant new information becomes available.

The McCully A-67(#1) and P-66(#2) wells continue to demonstrate
excellent production performance. After producing for more than 18
months, the wells have produced more than 1.1 billion cubic feet (bcf)
of gas at an average daily production rate of 2 million cubic feet and
sustained average wellhead pressures of approximately of 1500 pounds per
square inch. In December, 2004, APA Petroleum Engineering updated its
independent engineering report covering the northwest flank of the
McCully Field. The report estimates that portion of the field contains
proven and probable gas reserves of 119 bcf, and proved, probable and
possible reserves of 163 bcf, of which approximately two-thirds are net
to Corridor's interest (please refer to Corridor's website
www.corridor.ns.ca for map of reserves study area).

Corridor is a junior oil and gas exploration and production company,
headquartered in Halifax, Nova Scotia, with interests onshore in New
Brunswick, Prince Edward Island and Quebec, and offshore in the Gulf of
St. Lawrence.

"Statements in this Press Release may constitute forward-looking
statements. Such forward-looking statements include risks,
uncertainties and other factors which may cause actual results,
performance or achievements of Corridor to be materially different from
any future results, performance or achievements expressed or implied by
such forward-looking statements. Corridor does not undertake to update
any of such forward-looking statements."

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Corridor Resources Inc.
    Norman W. Miller
    President
    (902) 429-4511
    (902) 429-0209 (FAX)
    www.corridor.ns.ca
    The TSX Venture Exchange has neither approved nor disapproved the
    information contained herein.