Corridor Commences Drilling at McCully C-67 Location
Halifax, Nova Scotia, April 19, 2005: Corridor Resources Inc. (CDH - TSX-V) announced today that drilling operations have commenced at the McCully C-67 well located on the western side of the McCully gas field, as shown on the accompanying map. The well will be drilled to a total depth of approximately 2325 metres to the base of the Hiram Brook formation and is part of a multi-well drilling program designed to prove up additional natural gas reserves and production capacity. Corridor intends to connect the McCully field by pipeline to the Maritimes & Northeast Pipeline system. It is expected that it will take approximately 30 days to drill and complete the well. Potash Corporation of Saskatchewan has elected not to participate in the C-67 well.
The McCully field, located near Sussex in south central New Brunswick, is estimated to contain in excess of one trillion cubic feet of gas-in-place in the Hiram Brook formation. Two wells have been on production for two years supplying natural gas at an average rate of two million cubic feet per day to a limited local market. The continuing excellent production performance of these wells has demonstrated the potential for future wells in the McCully field to supply significant volumes of natural gas to larger markets in New Brunswick and New England. The C-67 well, shown on the attached map of the McCully field, is located within an area that was independently appraised by APA Petroleum Engineering (APA) in December, 2004, and that represents less than 20% of the total field area. The APA report assigned proven gas-in-place of 217 billion cubic feet (bcf) and proven and probable recoverable reserves of 119 bcf (79 bcf net to Corridor's interest) to the area assessed.
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.
bcf in APA Study Area" width="499" height="375" />
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.
