Drilling Completed At The EOG Corridor McCully H-28 Well, New Brunswick
Halifax, Nova Scotia, April 18, 2002: Corridor Resources Inc. (CDH - CDNX) announced today that EOG Resources Canada Inc. (EOG) has completed the drilling and initial logging of the McCully H-28 well, located approximately eight kilometres northeast of the McCully #1 discovery well. Production casing has been run and the well will be tested when completion and production equipment are on site later in the spring. The well reached a total depth of 3260 metres, encountering a sequence of over-pressured natural gas bearing sands in the Albert Formation, several of which were encountered at depths below 3000 metres.
The McCully H-28 well is the second of three commitment wells to be drilled by EOG as part of the previously announced farm-in program, and is the sixth well to encounter natural gas bearing sands in the McCully Field area. The drilling rig is being re-located to drill the third commitment well, EOG Corridor McCully J-65, located approximately 3 kilometres south of the McCully #1 discovery well.
In other activities, EOG has initiated well completion operations at the McCully Field, commencing with the EOG Corridor D-48 well. Results of well completion operations will be announced following the termination of these activities at each well.
Corridor and Potash Corporation of Saskatchewan Inc. (PCS) have recently successfully completed a series of extended flow tests at the McCully #1 and #2 wells at combined rates up to 3.7 million cubic feet per day at a flowing wellhead pressure of 2000 pounds per square inch. These tests have been conducted in preparation for constructing the pipeline and gas plant to deliver initial volumes of McCully gas to the PCS mill later this year.
Corridor is a junior oil and gas exploration company, headquartered in Halifax, Nova Scotia, with interests onshore in New Brunswick, Prince Edward Island, Quebec, and offshore in the Gulf of St. Lawrence.
EOG is a wholly owned subsidiary of EOG Resources, Inc., one of the largest independent (non-integrated) oil and gas companies in the United States, and the operator of substantial proved reserves in the U.S., Canada and offshore Trinidad. EOG Resources, Inc. is listed on the New York Stock Exchange and is traded under the ticker symbol, "EOG".
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.
