Corridor Reports Initial McCully K-66 Test Results
Halifax, Nova Scotia, August 15, 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 K-66 well in the McCully natural gas field located near Sussex, New Brunswick. K-66 is the second well to be stimulated in the current frac program (following the reporting of initial results for M-66 last week). The K-66 well flowed gas from the "A" sand at a measured rate of 6.40 million standard cubic feet per day (mmscf/d) and a flowing wellhead pressure of 1748 pounds per square inch (psi) at the end of a 77 hour flow period. The well was flowed through a 10.3 millimeter choke and was still cleaning up after recovering less than 20% of injected completion fluids during the test period. The flow rates reported are for only the initial clean-up period immediately following fraccing operations. Potash Corporation of Saskatchewan and Corridor are joint participants in the K-66 well.
Fraccing and testing operations are planned to be conducted on 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. Further flow testing of all seven wells (including M-66 and K-66) will be carried out prior to mid October to establish more definitive results.
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.
