Corridor Reports On Latest Activities
Halifax, Nova Scotia, August 25, 2005: Corridor Resources Inc. (CDH - TSX-V) (the "Corporation") announced today that drilling operations have been completed at the Chaloupe well location on Anticosti Island. The well was drilled to evaluate and test the hydrocarbon potential of the Black River formation and was located approximately one kilometer to the east of a previous well drilled on the Chaloupe structure. Corridor and its partner, Hydro-Québec, had suspended operations at the well in late July to await delivery of a casing liner to shut off water influx into the wellbore from zones above the Black River formation. The casing liner was run and cemented in place, successfully shutting off the influx of water into the well. The well was then drilled to a total depth of 1215 metres, encountering oil shows but no reservoir development in the upper part of the Black River formation before encountering salt water towards the base of the formation. The well was drilled using nitrogen as the drilling fluid to evaluate the fluid content and the productive potential of the reservoir. Abandonment operations at Chaloupe are proceeding, after which the rig will be relocated to drill a well on the large Jupiter prospect (please refer to the map shown below) and where drilling operations are expected to commence by the end of August. Hydro-Quebec has agreed to pay 25% of the Jupiter well costs to earn a 25% working interest in the Jupiter 2001PG544 exploration licence. Corridor holds the remaining 75% interest in the Jupiter well and licence. Operations at Jupiter are expected to be completed by the end of September, and the drilling rig will be demobilized off the island in October.
At the McCully natural gas field in New Brunswick, Corridor is preparing to run production casing in the K-57 well as part of its preparation for frac stimulation operations planned to be conducted at the field commencing in late September. In addition, Corridor expects to make application to the New Brunswick government in December for approval to develop the field, gas plant and pipeline facilities to connect gas production from the McCully field to the Maritimes & Northeast Pipeline. Submission of the application is dependent upon positive results from the frac stimulation program. As part of pre-development activities, Corridor has awarded contracts to AMEC Earth & Environmental for the environmental assessment of the pipeline route; to DKM Acquisition Service Inc. for pipeline right-of-way access with land holders; and to AMEC Industrial & Infrastructure Engineering for the preliminary design of the pipeline, gas plant and other field facilities.
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.
