Corridor Completes Initial Test At McCully C-67 Well
Halifax, Nova Scotia, May 24, 2005: Corridor Resources Inc. (CDH - TSX-V) announced today that it has completed an initial flow test at the McCully C-67 well, located near Sussex, New Brunswick. The test program was designed by APA Petroleum Engineering, an independent petroleum consultant, to determine the wells's initial flow capability and to assess formation damage in the vicinity of the wellbore. The well tested a 20 meter net pay section in the "A" and "B" sands of the Hiram Brook formation and flowed natural gas at a constant rate of 2 million cubic feet per day during a six-hour initial flow period to clean up the well. The well was then shut in for a 6 hour period for a pressure build-up, followed by a flow period of 12 hours at a planned rate approximately 25% of the initial rate. The initial test program was concluded with a 24-hour shut-in period to obtain a final pressure build-up. APA will analyze the data and utilize the information generated by the test to predict the initial flow capability of the well at various wellhead pressures and to assess to what degree the well has been damaged during under-balanced drilling operations.
The shallow resistivity curves from the Array Induction Log indicate the presence of some water in the annular zone immediately surrounding the wellbore. Corridor interprets that this water has condensed out of water vapour contained in the formation gas during under-balanced drilling operations, when portions of the reservoirs in close proximity to the wellbore were subjected to maximum pressure drawdowns of up to 3400 pounds per square inch during drilling operations. Minor amounts of fresh water were recovered in the test separator, confirming that this produced water is neither formation water nor the calcium chloride water used as a misting agent during under-balanced drilling operations. Corridor is proceeding to inject approximately 20 barrels of methanol in the well and to shut the well in for a period of approximately 30 days before re-testing the well. It is expected that the methanol will help to remove the condensed water from the area surrounding the wellbore when the well is re-tested, and Corridor expects that the well will demonstrate improved production capability when the well is re-tested near the end of June. In the meantime, the rig has been set up to directionally drill the G-67 well to evaluate the Hiram Brook formation at a bottom-hole location approximately 600 metres to the northeast of the C-67 well. Both the C-67 and G-67 wells are directional wells drilled to separate bottom-hole locations from a common drilling pad.
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.
