Corridor Resources Inc.
TSX : CDH

Corridor Resources Inc.

September 05, 2007 07:47 ET

Corridor Reports on McCully H-76 Well Results and Preliminary McCully F-58 Frac Results

HALIFAX, NOVA SCOTIA--(Marketwire - Sept. 5, 2007) - Corridor Resources Inc. (TSX:CDH) reported today the results of the McCully H-76 well which was drilled to a total measured depth of 2910 meters. The well was directionally drilled in a southern direction to intersect the upper Hiram Brook reservoirs at a bottom-hole location approximately 600 meters from the surface drill-pad. (Please refer to the map below showing surface and bottom-hole well locations). The well encountered a total of 50 meters of indicated net gas pay in the Hiram Brook formation based on well logs, including 33 meters in the "A" sand and 15 meters in the "B" sand, and is the 25th successful gas well in the McCully Field. The indicated net pay of the combined "A" and "B" sands is the thickest encountered to date by any well in the McCully Field. The well reached total depth in the top of the Frederick Brook formation, and no attempt was made to drill deeper in this well because of the relatively low structural position of the Frederick Brook formation at this location. The fluid content and productivity of the reservoirs will be confirmed during fraccing and flow-back testing operations planned for later this month. Corridor plans to tie the well into the McCully gas gathering system late this fall and to commence natural gas production to the McCully gas plant in December. The Nabors 86 (triple) drilling rig will be relocated to drill the McCully J-76 from the same surface well pad. Corridor has a 100% working interest in both the H-76 and J-76 wells.

In other activities, the Nabors #4 (double) drilling rig is drilling ahead near total depth at 2545 meters in the Mabou Group at the Green Gables #3 well. Corridor expects to complete drilling, logging and casing operations at the Green Gables well later this week, prior to relocating the drilling rig to eastern Prince Edward Island to drill the New Harmony #1 well. Corridor has a 100% working interest in the Green Gables #3 well. Assuming successful well results, Corridor plans to frac and flow-test the Green Gables well in October.

Corridor is currently conducting a multi-well frac stimulation program at the McCully Field, commencing in the Frederick Brook shale formation at the McCully F-58 well. Two fracs have been successfully placed prior to encountering a down-hole mechanical problem in preparing to perforate the next frac interval. The problem occurred when the perforating gun became stuck in the well at a depth of approximately 3200 meters. After initial failed attempts to retrieve it, the perforating gun has successfully been recovered. Following the perforating, fraccing and flow-back of an additional shale interval at F-58, Corridor plans to clean out the sand plugs separating the three completed intervals and to flow all three zones together. The results of this composite testing are expected to be available later in September. Several additional intervals in the Frederick Brook shale are also frac candidates, as well as the overlying "A" and "B" sands of the Hiram Brook formation. The frac equipment is expected to be redeployed next week to the O-76 drill pad to commence fraccing the P-76, D-66 and H-76 wells.

As an interim report on the frac results to date at F-58, the first of the two completed fracs at F-58 placed 9.5 tons of proppant and flowed back 89 cubic meters out of a total of 308 cubic meters of frac fluid prior to initiating gas flow. The interval flowed gas at a rate building to 0.62 million standard cubic feet per day (mmscf/day) at a well head pressure of 1099 pounds per square inch (psi) over a short 2-hour flow period. A sand plug was then placed across the interval prior to perforating the next frac interval. The next zone was acidized and, prior to fraccing, flowed gas at a rate building to 0.44 mmscf/day at a well head pressure of 1130 psi over a short 75-minute flow period before being shut in to frac the same interval. The frac placed 31.8 tons of proppant and flowed back 226 cubic meters out of a total of 806 cubic meters of frac fluid and trace amounts of gas before being shut in to proceed with perforating the next frac interval (at which point the perforating gun became stuck in the well).

A map of McCully Drilling Program is available at the following address: http://www.ccnmatthews.com/docs/McCullyDrillingProgram080307.jpg

A map of the Exploration Licences: Prince Edward Island is available at the following address: http://www.ccnmatthews.com/docs/ExplorationLicences_PEI.jpg

In response to some recent inquiries regarding Corridor's cash investments, Corridor wishes to advise that all cash balances consist of bank deposits and bank-issued term deposits of 30 days or less. Corridor has no investments in asset-backed securities.

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