Corridor Resources Inc.

Corridor Resources Inc.

September 07, 2010 08:30 ET

Corridor Resources Inc.: 2010 Anticosti Drilling Program Completed, Shale Gas Activities Progressing in New Bruswick

HALIFAX, NOVA SCOTIA--(Marketwire - Sept. 7, 2010) - Corridor Resources Inc. (TSX:CDH) reported today that the 2010 oil exploration program on Anticosti Island has been completed and that preparations are being made to remove the drilling and related equipment from the island commencing this week. Three wells have been drilled to evaluate the oil potential of the Trenton/Black River (TBR) and Mingan Group formations in the Jupiter, Chaloupe and Saumon prospects located in the east central part of the island.

The Jupiter well was a re-entry of the Corridor/Hydro-Quebec Jupiter well and was drilled directionally to a total measured depth of 2038 meters in an attempt to encounter dolomitized and fractured carbonates in the Mingan and Romaine formations. The well encountered live oil shows in the Mingan Formation but no significant reservoir potential, and has been abandoned. Corridor operated the well and has a 75% working interest in the well, with Petrolia Inc. holding a 25% working interest.

The Chaloupe well was drilled to a total measured depth of 1639 meters, with a sub-horizontal leg in the Black River section. The well encountered only minor dolomitized carbonates with no apparent reservoir development. Another key objective for this well was to core part of the oil bearing Macasty shale overlying the Trenton Formation. Approximately 27 meters of conventional core were recovered and analysis of the reservoir character and fluid content of the core has commenced. The oil-prospective Macasty shale is present across virtually the entire island, with Corridor and Petrolia holding approximately 900,000 and 600,000 net acres respectively (1.5 million net acres combined) in this emerging unconventional oil play. Corridor and Petrolia have commenced activities aimed at attracting an knowledgeable shale oil player to farm-in on this play, and initial interest by several potential players has been strong, due in part to the large area covered by this unconventional oil play. The deeper formations in the Chaloupe well have been abandoned, with the upper section of the well being suspended for potential future shale oil related activities. Corridor and Petrolia each hold a 50% working interest in the Chaloupe well, with Petrolia acting as operator.

The Saumon well was drilled to a total measured depth of 1223 meters, with a sub-horizontal leg in the Black River section. The well encountered only minor dolomitized carbonates but had very permeable reservoir development in fractured Black River carbonates. The well flowed a total of 47 cubic meters of salt water to surface, including an initial flow of 27 cubic meters (170 barrels) in the first 45 minutes. The high apparent reservoir permeability encountered, while water bearing in this well, is encouraging for future oil exploration in the area. The deeper formations in the Saumon well have been abandoned, with the upper section of the well being suspended for potential future shale oil related activities. Corridor and Petrolia have working interests of 75% and 25% respectively in the well, with Corridor acting as operator.

While exploration results to date on Anticosti Island are so far disappointing, the presence of live oil shows and permeable reservoir development combined with the very large number of prospects are positive factors for future oil exploration on the island.

Apache Activities

Apache is making good progress with respect to its shale gas appraisal program currently under way in the Elgin area of southern New Brunswick. The Apache/Corridor Green Road B-41 well has been drilled as an offset to the vertical Green Road G-41 well drilled by Corridor in the fall of 2008 and fracced by Corridor in November, 2009. The Apache operated well was drilled along the bedding plane in the silty upper portion of the Frederick Brook shale, encountering strong gas shows during drilling. The well has been cased to TD in preparation for multi-stage fraccing operations expected to be conducted by Apache later this fall. Apache has moved the Nabors drilling rig approximately 4 kilometers to the southwest of the Green Road well to drill a second shale gas appraisal well at the Will DeMille M-59 well. The M-59 well is designed to offset an earlier well at Will DeMille drilled by Corridor and Columbia Natural Gas in 1999, and which flared natural gas from the Frederick Brook formation during tripping operations. The lower part of the Will DeMille M-59 well will be drilled along the bedding plane in the Frederick Brook shale and cased in preparation for multi-stage fraccing operations later this fall.

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: ,oil exploration potential of the Trenton/Black River and Romaine formations, the unconventional oil potential of the Macasty shale and the indicated interest of potential partners.

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, 2008 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. 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
    902-429-0209 (FAX)