Corridor And PCS Encounter Natural Gas In Second McCully Well Near Sussex, New Brunswick
Halifax, Nova Scotia, March 12, 2001: Corridor Resources Inc. (CDH - CDNX) announced today that it has flowed natural gas at a measured rate of more than one million cubic feet per day during air drilling operations at the McCully #2 well. The well encountered a new sand above the main objective at a depth of 1975 metres which was not present in the McCully #1 well, as it was cut off by the Hillsborough unconformity. The gas pressure in this new sand is indicated to be approximately 3850 pounds per square inch (psi), or 1000 psi greater than normal hydrostatic pressure for this depth, indicating a gas column of potentially significant extent. This new zone could add significantly to the potential gas-in-place indicated by the McCully #1 discovery well.
The McCully #2 well is drilling ahead to evaluate the gas bearing sands penetrated by the McCully #1 discovery well which flowed natural gas at a rate of 2.6 million cubic feet per day last September. Results from these deeper sands are expected to be available towards the end of March. The McCully #2 well is being directionally drilled to intercept the main objective, the gas bearing Albert sands encountered in McCully #1, at a location approximately half a kilometre south southeast of the discovery well.
The exceptionally high reservoir pressures encountered in both McCully wells are indicative of very extensive gas columns in these Carboniferous age sands. These high pressures, combined with seismic data, suggest these gas reservoirs are laterally very extensive, extending down-dip onto lands held 100% by Corridor to the east of the Corridor/PCS joint venture lands. Additional step-out wells will be required to define the full extent and nature of the McCully discovery.
The Potash Corporation of Saskatchewan (PCS) is Corridor's 50% partner in these wells, with Corridor acting as the operator. Corridor retains 100% of the petroleum and natural gas rights in 52,000 hectares (146 sections) immediately to the east, west and north of the McCully gas wells.
Corridor is a junior oil and gas exploration company, headquartered in Halifax, Nova Scotia, with interests onshore in New Brunswick, Prince Edward Island and Quebec and offshore in the Gulf of St. Lawrence.
The Potash Corporation of Saskatchewan Inc. is a publicly traded company on the Toronto and New York stock exchanges.
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.
