Corridor Sets Completion Plan For McCully K-57 Well
Halifax, Nova Scotia, May 3, 2004: Corridor Resources Inc. (CDH - TSX-V) announced today plans for completing the McCully K-57 exploration well recently drilled at a location approximately 1.5 kilometres northeast of the McCully A-67 discovery well. The completion plan has been revised as a result of all of the information gathered during the evaluation of the K-57 wellbore, including recent confirmation that formation water has been encountered near the bottom of the wellbore, as described below. The first step is to mobilize a service rig to the site once a suitable unit becomes available, expected to be around the end of May. The production tubing will be pulled, side-wall cores will be obtained and formation pressure measurements will be taken in the various reservoir intervals. Pending confirmation of the reservoir quality of the gas bearing sands based on analysis of the side-wall cores, production casing will be run to total depth in preparation for the next step, a multi-stage frac program to overcome reservoir damage to the numerous promising natural gas bearing intervals in the well. The frac program will be designed to overcome formation damage and stimulate gas production from the various zones using non-damaging frac fluids and will be conducted as soon as suitable frac equipment can be mobilized to the well, expected to be in mid to late June. Corridor and Potash Corporation of Saskatchewan are equal participants in the well.
Further evaluation work at the K-57 well has confirmed that a member of the "A" sand package is water bearing and has introduced formation water into the wellbore at a depth of 2600 metres, near the bottom of the well. This has resulted in the net potential pay sand thickness for the well being reduced from 35 metres to approximately 30 metres. It should be noted that sands below the water bearing interval are indicated to be gas bearing. Corridor believes that the influx of water into the wellbore added to the formation damage incurred during the drilling of the gas bearing sands and reduced the flow of natural gas from the well during drilling and logging operations. Several gas bearing zones in the "B", "C" and "D" sand packages exhibit log characteristics that suggest good reservoir quality and that these zones are excellent candidates for frac treatments to overcome the indicated formation damage.
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.
