Corridor Spuds Deep Dawson Settlement Test at McCully
Halifax, Nova Scotia, November 23, 2006, (TSX - CDH): - Corridor Resources Inc. (CDH:TSX) announced today that drilling operations have commenced at the McCully F-58 well in the McCully natural gas field located near Sussex, New Brunswick. The well is located 2.5 kilometres northeast of the McCully A-67 discovery well on lands held 100% by Corridor. The well is expected to encounter the Dawson Settlement sands at a depth of 3100 metres and to be drilled to a planned total depth of 3600 metres. The primary objective of the well is to evaluate the natural gas potential of the Dawson Settlement sands at a structurally high position on the prospect. The well is also planned to penetrate the Hiram Brook sands at depths between 2300 and 2600 metres, and to be completed as a producer from that interval. If successful in both the Hiram Brook and Dawson Settlement sands, the well potentially could be completed in both zones as a dual producer. Corridor expects it will take 75 days to drill and case the well to total depth.
The McCully F-58 well is the first well in the McCully area designed to reach and explore the Dawson Settlement sands. The sands outcrop on the Caledonia Highlands located several kilometres to the south of the McCully Field, where they are observed to be very thick and coarse grained. 3-D seismic across the McCully Field area indicates the Dawson Settlement sands are trapped within the same structure as the Hiram Brook sands. The area of the structure at the Dawson Settlement level is in the order of 20,000 acres, indicating that the Dawson Settlement sands could, if gas bearing, contain quantities of gas-in-place several times greater than in the Hiram Brook sands.
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.
