Corridor Resources Inc.

Corridor Resources Inc.

June 18, 2010 08:30 ET

Corridor Update on Operations

HALIFAX, NOVA SCOTIA--(Marketwire - June 18, 2010) - Corridor Resources Inc. (TSX:CDH) announced today that Apache Canada Ltd. is commencing drilling operations at the Green Road B-41 well, located approximately 4 kilometers north of the village of Elgin, New Brunswick. The well is the first of a planned two well commitment program by Apache to horizontally drill, frac and test a silty section of the Frederick Brook shale formation as part of a farm-out program by Corridor. The B-41 well offsets Corridor's Green Road G-41 vertical well which successfully flowed natural gas following fracing operations in two separate intervals within the Frederick Brook shale formation (please refer to Corridor press releases dated November 25 and December 15, 2009). Completion and testing operations at B-41 are not expected to commence until later in the year.

A map is available at the following address:

Anticosti Exploration Program

Corridor also announced that this week it has completed the mobilization of a coiled tubing drilling rig and associated equipment to Port Menier on Anticosti Island in preparation for drilling four onshore oil exploration wells on the Island this summer. It is expected that the drilling operations will commence at the first well (Jupiter) around the beginning of July. The primary objective of the program is to evaluate the potential for light oil production from the carbonates of the Trenton/Black River formation. Corridor is partnered with Petrolia Inc. of Quebec for all four wells. As part of the planned drilling program, Corridor and Petrolia plan to cut a conventional core in the oil saturated Macasty shale (Utica equivalent) in one of the wells to evaluate the shale oil potential of this formation. The Macasty shale blankets the entire island and is estimated by Corridor to contain very large volumes of oil-in-place within the Corridor/Petrolia joint lands (approximately 1.6 million acres).

A map is available at the following address:

McCully L-37 Operations and Results

Corridor has completed perforating the seven inch casing over several sand intervals within a horizontal section of the L-37 wellbore in the McCully Field. Initial efforts to flow test the well without stimulation have resulted in relatively low rates of natural gas production. The well is currently shut in for a pressure build-up before conducting further testing operations. Corridor retains the option to frac a portion of the completion interval if necessary, depending upon the results of the current testing program.

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 Québec 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: the drilling plans of Apache, including completion and testing operations at B-41; Corridor's planned Anticosti exploration program; and references to oil-in-place.

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, 2009 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 in addition to the provisions of the farm-out and option agreement between Apache and Corridor. 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
    902-429-0209 (FAX)