Corridor Reports Initial McCully J-67 Test Results
Halifax, Nova Scotia, September 7, 2006, (TSX - CDH): - Corridor Resources Inc. (CDH:TSX) (the "Corporation") announced today that well stimulation (fraccing), initial flow-back testing and initial well clean-up operations have been conducted at the McCully J-67 well in the McCully natural gas field located near Sussex, New Brunswick.
The J-67 well flowed at a measured rate of 0.76 million standard cubic feet per day (mmscf/d) and a flowing wellhead pressure of 555 pounds per square inch (psi) at the end of a 40 hour flow period. The well was flowed through a 7.94 millimeter choke and recovered approximately 30% of injected completion fluids during the test period (i.e. 394 of 1316 cubic metres of injected completion fluids). The well was flowed through casing and was still flowing back significant volumes of completion fluids at the end of the relatively short initial flow-back period. The well was then re-entered with a coiled tubing string, encountering sand fill in the casing approximately 50 metres above the highest set of perforations.
During this coiled tubing operation, the sand plug and two flow-thru bridge plugs separating the three intervals fracced in this well (two in the "B" sand and one in the "A" sand) were drilled out. Consequently, Corridor does not believe that the initial test results are indicative of the true initial flow potential of the well. A production tubing string will be run in the well prior to a combined production test of the three fracced intervals. Corridor will release the flow rates from the production test once they become available, expected to be on or about September 23. Potash Corporation of Saskatchewan and Corridor are joint participants in the J-67 well.
J-67 is the 4th well to be fracced and tested as part of the current multi-well completion program being conducted during August and September. Based on log evaluations and sidewall core analyses, the J-67 well is interpreted to have thinner and less permeable pay sections than the initial three wells (M-66, K-66 and J-66) which were fracced and tested in August. Corridor anticipates that flow rates for the J-67 well will improve materially on re-test through a production tubing string once the wellbore has been cleaned out. This expectation is further supported by experience in both the D-48 and J-65 wells, where production rates on re-test increased significantly from initial clean-up rates following periods of shut-in production.
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.
