Corridor Announces Successful Re-Test Of The McCully D-48 And J-65 Wells
Halifax, Nova Scotia, November 27, 2002: Corridor Resources Inc. (CDH - TSX-V) announced today that it has successfully re-tested the McCully D-48 and J-65 wells which were drilled and completed earlier this year as part of a farmin program by EOG Resources Canada Inc. The D-48 well (100% Corridor) flowed natural gas at a measured rate of 2.2 million cubic feet per day at a flowing tubing head pressure of 1700 pounds per square inch (psi). The production performance of the well has improved substantially from the results obtained last summer and reported in October as a flow rate of 1.3 million cubic feet per day at a flowing tubing head pressure of 600 psi. Based on inflow performance curves, at an equivalent 600 psi flowing wellhead pressure the well is projected to be capable of flowing natural gas at a rate of 3.1 million cubic feet per day.
The J-65 well (50% Corridor/50% Potash Corporation of Saskatchewan Inc.) flowed natural gas at a measured rate of 1.5 million cubic feet per day at a flowing tubing head pressure of 1700 psi. The production performance of this well has also improved substantially from the results obtained last summer and reported in October as a flow rate of 1.2 million cubic feet per day at a flowing tubing head pressure of 600 psi. Testing of the McCully J-65 and D-48 wells is continuing.
Both wells incurred significant reservoir damage as a result of water invasion into the reservoir during drilling and completion activities earlier this year. Both wells have shown substantial improvement in flow performance as a result of the passage of time since the wells were tested last summer. These wells may experience further improvement in productive capacity by the time they are tied in for production and hooked up to markets. Corridor intends that new McCully wells will be drilled and completed in a manner that avoids the water invasion damage incurred in the drilling and completion of the McCully D-48 and J-65 wells.
Corridor also announced that it has completed 28 kilometres of new 2D seismic across part of the McCully field. The new seismic will assist in defining several specific locations for the next tier of wells to be drilled at McCully, with drilling operations expected to re-commence as soon as preparations can be made 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.
