Corridor Reports Initial McCully M-66 Test Results
Halifax, Nova Scotia, August 11, 2006, (TSX - CDH): - Corridor Resources Inc. (CDH - TSX) (the "Corporation") announced today that well stimulation (fraccing), initial testing and well clean-up operations have been completed at the McCully M-66 well in the McCully natural gas field located near Sussex, New Brunswick. The M-66 well flowed gas from the "A" and "B" sands at a measured rate of 5.86 million standard cubic feet per day (mmscf/d) and a flowing wellhead pressure of 2067 pounds per square inch (psi) at the end of a 62.5 hour flow period. The well was flowed through a 7.7 millimeter choke and was still cleaning up after recovering 35% of injected completion fluids during the test period. Fraccing and testing operations are planned to be conducted in a total of seven wells during August and September, and Corridor intends to continue to provide updates on the results of these activities as they proceed. Corridor considers the initial three wells (M-66, K-66 and J-66) to be the most productive of the seven wells to be stimulated and tested this summer, based on log evaluations and sidewall core analyses. Potash Corporation of Saskatchewan and Corridor are joint participants in the M-66 well.
Corridor also reported on recent re-test results for the four McCully wells (C-67, G-67, O-66 and K-57) that were fracced and initially tested late last fall. The re-test results showed significant improvement relative to the rates reported in December, 2005. The following table re-states the test results for the four wells reported last December as well as a productivity index which allows the wells to be compared on an equivalent basis.
| Well | Sands Fraced | Flow Duration (hours)* | Choke Size (mm)* | Flow Rate (mmscf/d)* | Head Pressure (psi)* | Index (mmscf/ d/psi2)* |
|---|---|---|---|---|---|---|
| C-67 | A & B | 67 | 7.94 | 3.2 | 1410 | 0.440 |
| G-67 | A & B | 40 | 5.56 | 0.9 | 978 | 0.109 |
| O-66 | A, B, D, & E | 92 | 12.7 | 5.7 | 955 | 0.807 |
| K-57 | B | 61 | 7.14 | 0.9 | 634 | 0.093 |
| * Transient Productivity Index after 4 days | ||||||
The following table presents the flow performances for the retesting of these wells undertaken in July. Also shown are the percentage increases in the well productivity indexes after 4 days of measured (or projected) flows. It is important to note that these initial productivity indexes will continue to decline somewhat until steady state flow is achieved, which could take a year or more of continuous production for these relatively low permeability reservoirs.
| Well | Sands Fraced | FlowDuration (hours)* | Choke Size (mm)* | Flow Rate (mmscf/d)* | Head Pressure (psi)* | Index (mmscf/ d/psi2)* | Increase (%)* |
|---|---|---|---|---|---|---|---|
| C-67 | A & B | 96 | 5.56 | 2.6 | 2143 | 0.528 | 20 |
| G-67 | A & B | 94 | 6.35 | 1.3 | 932 | 0.142 | 30 |
| O-66 | A, B, D, & E | 95 | 6.35 | 3.6 | 1498 | 0.989 | 23 |
| K-57 | B | 72 | 7.14 | 0.9 | 559 | 0.095 | 2 |
| * Transient Productivity Index after 4 days | |||||||
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.
