Corridor Reports On McCully J-66 Well Results
Not For Release, Publication Or Distribution In Or Into The United States
Halifax, Nova Scotia, June 27, 2006, (TSX - CDH): - Corridor Resources Inc. (CDH:TSX) (the "Corporation") announced today that the McCully J-66 well has been drilled to a total measured depth of 2600 metres. The well encountered 46 metres of indicated net gas pay thickness in the Hiram Brook formation, including 15 metres in the "A" sand, 19 metres in the "B"sand and the remainder in the "C" and "D" sands.
The Nabors #4 drilling rig is being relocated to drill the E-57 well from the K-57 surface drill pad following a 10-day rig maintenance operation. The E-57 well is designed to intersect the Hiram Brook Formation at a location approximately 600 metres southwest of the McCully K-57 well (please see map below). The J-66 well is the 17th well drilled to date in the McCully field that has encountered natural gas bearing sands in the Hiram Brook Formation. The well has been logged and cased to total depth in preparation for frac stimulation operations planned to be conducted at the well later this summer. Corridor and Potash Corporation of Saskatchewan are participating jointly in the J-66 and E-57 wells.
Corridor also announced today that it has purchased from Columbia Natural Resources Canada Ltd., a subsidiary of Chesapeake Energy Corporation, its 50% working interest (59,073 net acres) in two leases located in the Elgin sub-basin and immediately to the east of the McCully structure. Corridor now holds a 100% working interest in the two leases and plans to conduct a 2-D seismic survey there this summer.
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.
