Corridor Resources Inc.
TSX : CDH

Corridor Resources Inc.

June 26, 2009 10:09 ET

Corridor Reports Results of Independent Shale Gas Resource Study

HALIFAX, NOVA SCOTIA--(Marketwire - June 26, 2009) - Corridor Resources Inc. (TSX:CDH) provided a summary of the results of an independent study of the quantity of shale gas resource contained within the Frederick Brook formation in the Sussex/Elgin sub-basins of southern New Brunswick. The study, effective June 1, 2009 conducted by GLJ Petroleum Consultants of Calgary, Alberta, states that the best estimate of discovered resources in the study area is 67.3 TCF gross and 59.1 TCF Corridor working interest (refer to table below). The study was conducted in accordance with the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. The results of this study are based on all available seismic and well information within the study area provided by Corridor to GLJ . The GLJ study addressed only in-place gas volumes since insufficient information is available at this time to estimate the technical or economically recoverable amount of shale gas within the study area.

There is no certainty that it will be commercially viable to produce any portion of these discovered resources.

A table of Best Estimate Discovered Resources(1)(2) is available at the following address: http://media3.marketwire.com/docs/cor-tab1.JPG

Note:

(1) The "best estimate" is defined as the value that best represents the expected outcome with no optimism or conservatism.

(2) "Discovered resources" is defined in the COGE Handbook as that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The term discovered resources is equivalent to discovered original gas-in-place (OGIP).

The results of this study will assist Corridor in developing a longer term plan for the appraisal and potential development of this vast resource.

Corridor believes that several attributes of this Frederick Brook shale gas resource are particularly encouraging for future potential development:

(1) the reported resource considers "free" gas-in-place (FGIP) in available porosity only, and does not consider adsorbed gas within existing kerogen which may add significantly to the total volume of gas-in-place,

(2) the extensive thickness of the shale results in a greater than normal concentration of the resource in terms of potential development area, with an average FGIP of 370 BCF per statute square mile, and with some areas of thicker shale containing more than 600 BCF per square mile,

(3) the depth to the top of the Frederick Brook shale is greater than 2000 meters over much of the study area and the pore pressure within the shale is significantly greater than hydrostatic pore pressure, resulting in higher than normal formation pressures within the shale, and

(4) the extensive thickness of the shale means that significant (1 kilometer +) wellbore exposure to the shale can be attained without the necessity of drilling horizontally.

The following table lists the wells that have made significant penetrations into the Frederick Brook shale and, along with available seismic data, have provided the data and the basis for the GLJ study as well as the map shown below.



Well Top Frederick Brook FB Shale Penetrated
(Depth - Meters TVD) (Meters)
P-56 2709 489
D-67 2462 113
E-38 2940 195
F-58 2750 993
E-67B 2561 1164(i)
P-76 2501 233
G-36 2175 448
Will de Mille 1999 573
G-41 1629 785
Mapleton CH 352 418(ii)

(i) Full penetration
(ii) Eroded top


The following isopach map outlines the distribution and thickness of the upper (silty and clay-rich) unit of the Frederick Brook shale in the Sussex/Elgin sub-basins. It is important to note that the underlying (deeper) albitic/dolimitic unit of the Frederick Brook shale has a similar thickness and distribution that approximately doubles the thickness of shale shown in the map.

The map is available at the following address: http://media3.marketwire.com/docs/cor-0626.jpg

Corridor is encouraged by the results of a small 9 tonne frac which was completed in the albitic/dolomitic (lower) section of Frederick Brook formation in the McCully F-58 well and has been flowing natural gas into the McCully gas gathering system at a consistent rate of approximately 150,000 cubic feet per day at a wellhead pressure of 550 psi for the past 14 months (cumulative production to end of May is 69 million cubic feet). In addition, a 14 tonne frac placed in the upper Frederick Brook shale in the McCully P-76 well flowed natural gas for 76 hours at an average rate of 150,000 cubic feet per day at a final wellhead pressure of 32 psi on frac clean-up and was then suspended for completion of overlying McCully sands.

McCully Frac and Workover Programs

In other activity, Corridor is in the final stages of preparation for a multi-frac stimulation and completion program planned to be undertaken during the second half of July at three McCully wells drilled earlier this year. This program will utilize liquid propane as the frac fluid and Corridor expects results to be available later in August. Corridor is also in the process of designing a well workover program planned to be conducted later this summer and aimed at increasing natural gas production at several currently producing wells in the McCully Field.

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: exploration and development drilling program, including fracturing, completion and workover programs, potential development of the Frederick Brook formation, and quantities of resources.

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
    President
    902-429-4511
    902-429-0209 (FAX)
    www.corridor.ca