Corridor Resources Inc.

Corridor Resources Inc.

September 07, 2007 08:35 ET

Corridor Reports on Initial Green Gables #3 Well Results

HALIFAX, NOVA SCOTIA--(Marketwire - Sept. 7, 2007) - Corridor Resources Inc. (TSX:CDH) reported today the results of the Green Gables #3 well (100% Corridor) which has been drilled to a total measured depth of 2545 meters. The well is located near Cavendish on Prince Edward Island and was drilled to evaluate the natural gas productive potential of the south flank of the Green Gables structure. (Please refer to the map below showing the approximate location of the Green Gables #3 well). The well encountered a total of 70 meters of indicated net gas bearing sand mainly in the Bradelle Formation based on well logs and using a 6% porosity cut-off. The well offsets two gas bearing wells previously drilled in the central part of the structure, one in 1972 and one in 1997. The gas bearing sands have significant amounts of clay in the pore structure which may reduce permeability to gas flow. The key question Corridor is attempting to answer at the Green Gables #3 well is whether or not natural gas can be flowed at commercial rates of production. Consequently, in October at least one of the reservoir sands in the #3 well will be fracced and flow tested to evaluate natural gas productivity. Following completion of rig operations next week at the Green Gables #3 well, the Nabors #4 (double) drilling rig will be relocated to the eastern end of Prince Edward Island to commence drilling the New Harmony #1 well in mid September. The New Harmony well is being 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. The New Harmony well will be drilled to a minimum required depth of 2800 meters as per the terms of the Data Exchange and Option Agreement announced by Corridor on May 11th, 2007.

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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)