Corridor Updates Activities on Anticosti Island, Quebec
Halifax, Nova Scotia, August 16, 2005: Corridor Resources Inc. (CDH - TSX-V) (the "Corporation") announced today that drilling operations have been completed at the MacDonald well location on Anticosti Island. The well was drilled to evaluate and test the hydrocarbon potential of the Trenton/Black River (TBR) formation. Corridor and its partner, Hydro-Québec, commenced drilling operations on July 27th, 2005, and attained a total depth of 648 metres early on August 8th, 2005. The well was drilled to a depth of 627 metres into the upper part of the TBR formation, after which 7" diameter intermediate casing was installed and cemented into place. The underlying portion of the TBR formation was then drilled under-balanced using nitrogen as the drilling fluid to evaluate the fluid content and the productive potential of the reservoir.
While the porous and fractured zones encountered in the well were wet, calculated formation water flows of several thousand barrels per day were observed while drilling underbalanced, demonstrating the significant reservoir potential of this zone on the island.
The MacDonald structure is but one amongst many structures already identified on the island. Analogues for this type of structure on Anticosti include the world-class Albion-Scipio field in Michigan and recent discoveries in New York State.
The drilling rig was released on August 13th, and is currently returning to the Chaloupe well where drilling operations will resume to evaluate and test the TBR formation. Upon completion of operations at Chaloupe, the rig will be relocated to the Jupiter #1 location, where drilling operations are expected to commence in early September. Operations are expected to be completed at Jupiter by the end of September, and the drilling rig will be demobilized off the island in October.
Corridor holds a 50% working interest in the MacDonald exploration licence and a 75% working interest in the Chaloupe exploration licence, with Hydro-Québec holding the remainder of the interests in these licences.
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.
