Operations Update At McCully K-57 Well
Halifax, Nova Scotia, April 27, 2004: Corridor Resources Inc. (CDH - TSX-V) announced today that the drilling rig is being removed from the McCully K-57 well location following completion of wireline logging operations. The well logs confirmed approximately 35 net metres of potential gas pay within a gross thickness of the Hiram Brook Formation of over 500 metres with excellent correlation to the two McCully producing gas wells (A-67 and P-66). The geological descriptions and log porosities of many of the gas sands suggest improved reservoir quality in comparison to the same sands in the two producing wells. Further analysis of the well logs is currently under way. However, during a short initial flow test, the K-57 well flowed gas rates between 350,000 and 500,000 cubic feet per day with 100 psi surface flowing pressure, indicating formation damage may have occurred during drilling operations.
The K-57 well costs to date have exceeded the initial AFE estimate of $2.9 million by approximately 30 percent.
The conflicting results for the K-57 well suggest that it is premature to reach definitive conclusions regarding the well's potential. Accordingly, following dismantling and removal of the drilling rig, expected to be completed by Friday, April 30, workover operations will commence at the well aimed at removing reservoir damage in the wellbore area and stimulating gas production. A service rig is being mobilized to the location to conduct workover operations. Details of the planned workover operations will be released once they are finalized. Results from the operations will be announced as soon as they become available, expected to be by the third week in May.
Corridor is a junior oil and gas exploration and production 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.
