Corridor Updates Activities at McCully Natural Gas Field, New Brunswick
Halifax, Nova Scotia, November 15, 2005: Corridor Resources Inc. (CDH - TSX-V) (the "Corporation") announced today that the current round of frac stimulation operations at the McCully field has been completed. Nine separate frac treatments were conducted on four McCully wells; C-67, G-67, O-66 and K-57. The fracs appear to be have been technically successful, placing a cumulative total of more than 300 tons of sand proppant in the Hiram Brook formation. The frac equpiment is currently being demobilized back to Alberta.
Initial testing operations on the fraced wells are set to begin later this week and will involve drilling out the remaining plugs separating frac intervals, recovering incremental volumes of frac fluids where possible, and measuring initial natural gas flow rates for each well over a production period of several days. Following the flow period, each well will be shut in for an extended period (at least two to three weeks) for pressure build-up analyses. Corridor expects to report within the next three to four weeks on the initial flow rates and pressures achieved.
Drilling operations at the McCully B-58 well are progressing at a depth below 2200 metres in the Hiram Brook formation. The well is being drilled underbalanced with nitrogen, and is expected to reach a total depth of approximately 2500 metres in the Fredericks Brook shale formation within the next few days. The Nabors 4 drilling rig will then be relocated to the O-66 well pad from where it will directionally drill the D-57 well to a bottom hole location approximately 600 metres to the east of the surface location. PCS has elected not to participate in the D-57 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 since April, 2003 supplying natural gas at an average rate of two million cubic feet per day to a limited local market. The B-58 well is the twelfth well to be drilled in the McCully field, with all previous eleven wells encountering natural gas. The well is aimed at adding reserves and production capacity to supply natural gas markets in New Brunswick and New England via a 30 mile pipeline to connect the McCully field to the Maritimes & Northeast Pipeline system. The C-67, G-67, K-57, O-66, B-58 and planned D-57 wells are located within an area that was independently appraised by APA in December, 2004, and that represents less than 20% of the total field area. The APA reserves 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. APA is currently updating this report to reflect the gas reserves status at Corridor's fiscal year end (August 31, 2005).
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.
