Corridor Resources Inc.

Corridor Resources Inc.

July 09, 2008 08:00 ET

Corridor Updates Drilling and Completion Activities in New Brunswick and Prince Edward Island

HALIFAX, NOVA SCOTIA--(Marketwire - July 9, 2008) - Corridor Resources Inc. (TSX:CDH) reported today that drilling and logging operations have been completed at the McCully P-67 well, the 32nd well to be drilled in the McCully Field in southern New Brunswick. The well reached a total measured depth of 2791 meters in the top of the Frederick Brook shale, encountering 47.5 meters of potential net gas pay in the "A" and "B" sands of the Hiram Brook formation. Significant natural gas shows were encountered during drilling operations. The well is being cased and is awaiting fracture stimulation operations planned for this summer and will be directly tied into the McCully gas gathering system. Corridor and Potash Corporation of Saskatchewan each hold a 50% working interest in the P-67 well.

The I-47, the first horizontal well to be drilled in the McCully Field, is drilling ahead at a measured depth of 3150 meters in the horizontal leg of the well in the "E" sand of the Hiram Brook formation. Corridor expects to complete drilling operations at this well later this month and to undertake a multi-stage fracturing program later this summer using the Packers Plus technology. Corridor holds a 100% working interest in the I-47 well.

Well fracturing, completion and testing activities at McCully are scheduled to commence in the third week of July and extend into the fall, and will include operations at the McCully P-67, C-57, I-47, J-47, K-48 and C-48 wells. These wells, along with the E-67 well, are planned to be tied into the McCully gas gathering system during the late summer and early fall. Fracturing and testing operations are also planned for a well to be drilled at C-29, the vertical shale gas wells at Elgin and an additional horizontal well in the McCully Field.

Corridor also announced that it has pre-sold a portion of its gas production for the coming winter season (November 1, 2008 through March 31, 2009). The forward sales are priced at Dracut, Massachusetts and consist of 5,000 MMBtu/day at a price of US$14.40/MMBtu and an additional 5,000 MMBtu/day at a price of US$15.49/MMBtu.

A map of the McCully Development is available here :

In Prince Edward Island, the casing breach that resulted in a suspension of fracturing operations in the Green Gables #3 well last December has been successfully repaired. However, Corridor has decided to defer fracturing operations at the well until later this summer and possibly until next year to concentrate operations around the very heavy schedule of activities planned for southern New Brunswick.

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.

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.
    Norman W. Miller, President
    902-429-0209 (FAX)