Corridor Resources Inc.

Corridor Resources Inc.

October 10, 2007 08:46 ET

Corridor Reports on Initial New Harmony #1 Well Results

HALIFAX, NOVA SCOTIA--(Marketwire - Oct. 10, 2007) - Corridor Resources Inc. (TSX:CDH) reported today the preliminary results of the New Harmony #1 well which has been drilled to a total measured depth of 3403 meters. The well is located north of Souris in eastern Prince Edward Island and was drilled to evaluate the natural gas productive potential of sandstone reservoirs in a large graben structure. (Please refer to the map below showing the approximate location of the New Harmony #1 well). The well encountered natural gas shows in several sands in the Bradelle Formation below a depth of approximately 2700 meters. Based on well logs, however, porosities appear to be lower than in sands of equivalent age in the Green Gables #3 well. The New Harmony well is located approximately 15 kilometers to the east of the previously drilled Naufrage and Bear River wells drilled in 1975 and 2003 respectively, which also had gas shows in equivalent Bradelle sands. Casing is being run and cemented to total depth. Corridor believes that frac stimulation will be necessary to determine whether or not natural gas can be flowed at potentially commercial rates of production from these relatively low porosity sands. However, decisions regarding fraccing and testing will not be made until all the log and sidewall core information has been evaluated.

The New Harmony well has been drilled as part of a farm-in by Corridor to earn a 50% interest in Oil and Natural Gas Permit No. 03-02 held by PetroWorth Resources Inc. pursuant to the terms of a Data Exchange and Option Agreement announced by Corridor on May 11th, 2007.

A map is available at the following address:

Corridor Resources Inc. is a Halifax, Nova Scotia based company focused on exploring and developing natural gas resources in the McCully Field and surrounding areas of southern New Brunswick. The Company has completed construction of a field gathering system, a gas plant, and a pipeline lateral connecting the McCully Field to markets through the Maritimes & Northeast Pipeline (M&NP). The Company initiated natural gas production to M&NP on June 28, 2007 and has a continuous development drilling program underway to add reserves and production capacity as field development expands. Corridor also has a number of potentially high impact exploration projects planned in New Brunswick and elsewhere in eastern Canada.

Forward Looking Statements

This press release contains certain forward looking statements relating to, but not limited to, Corridor's operations, anticipated financial performance, business prospects and strategies, including expectations relating to production levels; capital expenditure programs; the quantity of natural gas reserves; projections of market prices; projections of costs; supply and demand for natural gas; expectations regarding the ability to raise capital and to continually add to reserves through exploration and development; and treatment under governmental regulatory regimes. These statements are based on current expectations that involve numerous assumptions regarding factors and risks that could cause actual results to vary materially, including, without limitation to, the following factors: risks associated with oil and gas exploration, financial risks, substantial capital requirements, bank financing, government regulation, environmental, prices, markets and marketing, dependence on key personnel, dependence on Potash Corporation of Saskatchewan, Inc., availability of drilling equipment and access, risks may not be insurable, management of growth, expiration of licenses and leases, reserves estimates, seasonality, competition, conflicts of interest, Kyoto Protocol, issuance of debt, title to properties and hedging. There is no representation by Corridor that actual results achieved will be the same in whole or in part as those set out in the forward looking information. Furthermore, the forward looking statements contained in this press release are made as of the date hereof, and Corridor undertakes no obligation, except as required by applicable securities legislation, to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise.

Contact Information

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