Second McCully Well Flows Gas At Over 2 Million Cubic Feet Per Day
Halifax, Nova Scotia, April 16, 2001: Corridor Resources Inc (CDH - CDNX) announced today that flow testing of the McCully No. 2 well has been completed. The test resulted in a stabilized natural gas flow rate of 2.2 million cubic feet per day at a flowing tubing head pressure of 2,100 pounds per square inch (psi) following a three-day flow period. Production logging indicated gas is being produced from several sands over a 400 meter gross interval, including the sand that is the main productive zone in the adjacent McCully No. 1 well. Initial analysis of the well's production performance indicates that it is capable of flowing gas at a rate of 4.1 million cubic feet per day at the design separator pressure of 400 psi. The McCully No. 2 well is currently shut-in for pressure build-up analysis. The well is located approximately 12 kilometres northeast of Sussex, New Brunswick and is situated on lands under a 50/50 joint venture partnership with the Potash Corporation of Saskatchewan Inc., with Corridor acting as the operator.
Following completion of testing operations at the McCully No. 2 well, Corridor plans to workover, re-complete and re-test the McCully No. 1 well.
Corridor and PCS also announce that they have commenced drilling the third McCully well, identified as McCully P-56. The well is located 2.2 kilometres east southeast of the McCully No. 1 discovery well, where 3-D seismic data indicates the new well will penetrate up to 700 gross metres of the prospective Albert formation. The Albert sand and shale sequence is expected to be encountered at a depth of approximately 1900 metres and to be significantly thicker at the P-56 well location than in the previous two McCully wells. Total depth for the well is projected to be 2700 metres and the well is expected to be completed by late May.
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.
