Corridor To Re-Test McCully D-48 And J-65 Wells
Halifax, Nova Scotia, October 31, 2002: Corridor Resources Inc. (CDH - TSX-V) announced today that it is preparing to re-enter and re-test the McCully D-48 and J-65 wells which were drilled and completed earlier this year as part of the EOG farmin program. Earlier this month, Corridor announced that EOG had elected not to continue with the farmout program. As a result, Corridor retains a 100% working interest in the McCully D-48 well, while Potash Corporation of Saskatchewan Inc. (PCS) is a 50% partner with Corridor in the McCully J-65 well. Corridor interprets that these wells were damaged by water invasion from drilling muds and completion fluids during the earlier drilling and stimulation operations. The results from previous testing of these wells were announced by Corridor on October 24, 2002. The purpose of the re-testing is to determine if the production performance of the wells has improved following the three month shut-in period from when the wells were last tested. Any improvement in gas flow performance will indicate the wells are attempting to overcome the damage caused by the water-based drilling and completion fluids. Corridor anticipates the flow rates from the re-tests will be known and announced by mid December.
Corridor also announces that it is preparing to conduct a 2D seismic program across part of the McCully field, commencing in mid-November. The new seismic data will assist in defining a number of specific locations for the next tier of wells to be drilled at McCully. Corridor intends that drilling operations will resume at McCully in 2003.
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.
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.
