Corridor Completes Drilling Operations At The McCully B-58 Well
Halifax, Nova Scotia, December 6, 2005: Corridor Resources Inc. (CDH - TSX-V) (the "Corporation") announced today that the McCully B-58 well has been drilled to a total depth of 2493 metres. The well encountered 22 metres of indicated net gas pay in the Hiram Brook formation, including 13 metres in the "B" sand and 9 metres in the "A" sand. The Nabors #4 drilling rig is being relocated to drill the D-57 well to penetrate the Hiram Brook formation at a location to the east of the A-67 discovery well (please see map below).
The B-58 well encountered a significant flow of natural gas from the "B" sand while drilling underbalanced with nitrogen as the drilling fluid. The initial flow rate was substantially greater than the subsequently measured flow rate, potentially due to flush production from the fractured reservoir or possible formation of down-hole hydrates which may have impeded the subsequent gas flow. A steady flow rate of 1.3 million cubic feet per day was recorded at two separate time intervals four days apart during drilling operations. However, drilling problems made it necessary to kill the well with a heavy weight drilling fluid in order to complete the drilling to total depth. The Hiram Brook section of the well has been cased and the well has been suspended in preparation for a frac stimulation treatment expected to be conducted next year.
B-58 was the first McCully well to penetrate the Hiram Brook formation on the north side of a major east/west trending fault in the northern part of the field. The thickness and porosity of the sands encountered at this location were less than encountered in wells to the south of the fault. However, the sands were highly fractured in three separate intervals with evidence for open fractures observed in cuttings and sidewall cores, enhancing the permeability of parts of the reservoir section.
Production testing of the wells that were fraced this year is continuing, including re-tests of the McCully D-48 and J-65 wells. Corridor expects to announce the results of these tests by the middle of December.
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.
