Corridor Commences Drilling at Anticosti
Halifax, Nova Scotia, July 6, 2005: Corridor Resources Inc. (CDH - TSX-V) announced today that drilling operations have commenced at the Chaloupe well on Anticosti Island. The well is being drilled to evaluate and test the potential for light crude oil in the Trenton/Black River (TBR) formation. The well has been drilled to a depth of 183 metres and 9-5/8" casing has been set and cemented to that depth. Corridor plans to drill the intermediate hole to a depth of approximately 900 metres before setting and cementing 7" casing into the top of the TBR formation. The TBR formation will then be drilled under-balanced using nitrogen as the drilling fluid to evaluate the fluid content and productive potential of the reservoir.
Independent petrophysical and organic petrology analyses of data from a previous Chaloupe well (drilled in 1999) have indicated that the Chaloupe structure contains light oil in the TBR formation. Pressure data from previous wells drilled into the TBR formation on Anticosti Island have indicated that the formation is under-pressured compared to formation pressures normally encountered at equivalent depths. Corridor believes that this lower than expected formation pressure may account for why the potential oil pay was overlooked in the previous Chaloupe well. The Chaloupe structure has an areal extent of more than 13,000 acres and, if successful, has the potential to contain in excess of 100 million barrels of recoverable light oil. Hydro-Quebec holds a 25% working interest in the Chaloupe exploration licence, while Corridor holds the remaining 75% working interest in the licence and is the operator of the well. Results of the Chaloupe well are expected to be known during the last week of July.
Following completion of operations at the Chaloupe well, the drilling rig will be moved approximately 50 kilometres to the northwest to drill the MacDonald structure, where Hydro-Quebec and Corridor each hold 50% working interests in the licence.
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.
