Corridor Resources Inc.

Corridor Resources Inc.

August 19, 2008 08:00 ET

Corridor Updates Operations in New Brunswick and Prince Edward Island

HALIFAX, NOVA SCOTIA--(Marketwire - Aug. 19, 2008) - Corridor Resources Inc. (TSX:CDH) reported today that drilling at the McCully I-47 well has been completed in the horizontal leg of the well at a measured total depth of 3693 meters in the "E" sand of the Hiram Brook formation. Corridor expects to initiate fracture operations at this well later this summer using the Packers Plus multi-stage fraccing technology. Corridor holds a 100% working interest in the I-47 well. The Nabors Rig #86 is finishing completion operations at the well prior to relocating to drill the South Branch G-36 exploration well, commencing later this month. The South Branch well is an important step-out from the McCully Field and is designed to evaluate the natural gas potential of the basin margin to the southeast of the Field.

The McCully N-66 horizontal well is drilling ahead at a measured depth of 2660 meters as it prepares to drill the horizontal leg of the well through the "A" sand in the heart of the most productive part of the McCully Field. Corridor plans to undertake a fracturing program at this well later this summer using the Packers Plus multi-stage fraccing technology. Corridor and Potash Corporation of Saskatchewan each hold a 50% working interest in the N-66 well.

In other completion activities, Corridor has completed fracturing and initial testing operations at the McCully P-67 and C-57 wells. Three fracs have been completed in the P-67 well and the well has been temporarily tied into the gas gathering system for long-term testing and production. After 12 days of continuous flow the well was producing at a rate of 3.7 mmscf/day prior to a short-term shut-in of the field due to maintenance operations on M&NP. Two fracs have been completed in the McCully C-57 well and frac fluids are being recovered before a stabilized production rate can be reported for this well. Corridor and Potash Corporation of Saskatchewan each hold a 50% working interest in the P-67 and C-57 wells.

Well fracturing, completion and testing activities at McCully are also scheduled for several other wells this summer and fall, and will include operations at the McCully I-47, N-66, J-47, K-48 and C-48 wells. These wells 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 and for one of the three vertical shale gas wells to be drilled this fall at Elgin.

A map is available at the following address:

In other activities, Corridor announced that it has completed the fracturing of two intervals in the Green Gables #3 well and has suspended operations there to evaluate results. Corridor has shut the well in to further monitor pressure build-ups and well-bore temperatures and will report on results by the end of August. Under the terms of an agreement between Corridor and PetroWorth Resources Inc. announced on July 30, 2008, PetroWorth is financing the costs of the subject fracturing and testing operations to earn a 10% working interest in the Green Gables licence 04-03. Corridor has until September 5, 2008 to elect to locate and drill a total of two exploration wells on lands comprising PetroWorth licences 03-01, 03-02, 04-05, 04-06 and 04-07 prior to July 31st, 2009 to earn a 50% working interest in these licences.

A map is available at the following address:

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.

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)