Well Completion Activities Continuing At McCully Field, New Brunswick
Halifax, Nova Scotia, May 24, 2002: Corridor Resources Inc. (CDH - TSX-V) announced today that well completion activities at the McCully field are continuing under the operator's farmin agreement with Corridor. Initial efforts to stimulate production at the McCully D-48 well have met with mixed success, resulting in only minor flows of natural gas to date. Several zones were fractured and Corridor interprets that the initial flow results indicate that water introduced through drilling and stimulation activities may be adversely affecting the productive capabilities of the reservoir sands. "It is important to appreciate that we are still in the early stages of an evaluation process to determine the most effective methods and fluids to employ in drilling and completing wells in the McCully field" said Norm Miller, Corridor's president. "The large gas-in-place resource makes it all the more important to optimize the drilling and completion techniques for this field, including the testing of different types of completion fluids."
Production logging operations conducted last week at the McCully #2 well confirmed several sands within an overall 400 meter gross interval are observed to be contributing significantly to the well's productive capability. The McCully #2 well has a tested production capability greater than 3 million cubic feet per day and the main producing sands have never been exposed to water, either through drilling or completion operations. This well, together with the McCully #1 well, is expected to commence production to the local potash mill by late 2002.
Current completion operations at the D-48 well and other wells are aimed at increasing productive capabilities above those already proven by the techniques applied at Corridor's McCully #2 well.
Completion activities at the D-48 well are planned to resume following a review of information from the initial tests, including the pressure build-up data. The ultimate productive capability of the well will be determined following well clean-up and a combined flow-test of all the completed zones.
The operator is re-locating completion equipment to the McCully C-75 and H-28 wells to initiate completion operations at these sites, including the use of alternative completion fluids.
The McCully J-65 well, located approximately three kilometres south of the McCully #1 discovery well, is currently drilling ahead at a depth below 2000 metres. It is anticipated the well will reach a planned total depth of 3200 metres during the first half of June.
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.
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.
