Fourth Well Significantly Extends The McCully Field
Halifax, Nova Scotia, October 9, 2001: Corridor Resources Inc. (CDH - CDNX) announced today that drilling and well logging operations at the McCully #4 well have been completed after reaching a total depth of 3150 metres. The well encountered numerous natural gas bearing sands in the upper Albert formation, confirming the extension of the McCully field at least 5 kilometres to the southwest of the McCully #1 discovery well. The lower most productive zone in the McCully #1 well was encountered more than 500 metres deeper (i.e., below 2900 metres) in the McCully #4 well, where well data indicate a gas/water interface within this interval. This interface supports the existence of a regional gas/water contact initially predicted from abnormally high gas pressures encountered in the first three McCully wells. New seismic indicates the productive McCully sands may extend over a large area above this regional gas/water interface. Corridor and Potash Corporation of Saskatchewan (PCS) are equal partners in the well, with Corridor acting as the operator.
The well is being suspended after running and cementing 7" casing to total depth. Corridor and PCS plan to frac the McCully #4 and #3 wells to complete them as future gas producers once a definitive fracing program has been prepared.
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.
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.
