Corridor Resources Inc.

Corridor Resources Inc.

March 28, 2008 07:00 ET

Corridor Completes Drilling Operations at McCully E-67

HALIFAX, NOVA SCOTIA--(Marketwire - March 28, 2008) - Corridor Resources Inc. (TSX:CDH) reported today that drilling and logging operations at the McCully E-67 well have been completed. The well was drilled to a total depth of 4130 meters encountering 18 meters of indicated net gas pay in the "B" sand of the Hiram Brook formation and over 1160 meters of Frederick Brook shale. However, the well failed to encounter sands in the Dawson Settlement formation at this location and reached total depth in "red beds" consisting primarily of siltstone and shale. Significant shows of natural gas were encountered while penetrating the Hiram Brook "B" sand and in extensive naturally fractured shale intervals within the Frederick Brook formation. As previously disclosed, it was necessary to flare significant amounts of natural gas during tripping operations while drilling through the Frederick Brook shale. Corridor is undertaking an "open-hole" completion in the Frederick Brook formation and plans to tie the well into the gathering system to facilitate long-term evaluation of the production potential of this extensive shale section. The Hiram Brook "B" sand has been cased for fracturing and completion at a future date. Potash Corporation of Saskatchewan Inc. is a 50% working interest partner with Corridor in the E-67 well.

Production of the J-38 well has been initiated to Corridor's gas plant at a current rate of approximately 3 mmscf/day. A production log run in the well during testing operations indicated that a high percentage of the bitumen laden gas sands in this well are contributing to the production stream. This is encouraging for numerous future wells which Corridor plans to drill to the north and east of the J-38 well.

The McCully J-47 well is drilling ahead at a measured depth below 3280 meters, having encountered an extensive sequence of indicated natural gas bearing sands in the upper Hiram Brook formation. Once total depth has been reached, the well will be logged and cased in preparation for fracturing operations planned for this summer.

Planning for the drilling and completion of the Elgin horizontal shale well has commenced, including determination of the design parameters and a preferred location for the well. The drilling and multi-stage fracturing of this well are scheduled to be completed in the fourth quarter of 2008.

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.

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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.

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. 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 future natural gas commodity prices, 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 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. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that forward-looking statements will not be achieved. These factors may be found under the heading "Risk Factors" in Corridor's Annual Information Form for the year ended December 31, 2007.

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.
    Contact: Norman W. Miller
    902-429-0209 (FAX)