Corridor Announces Results of McCully E-38
Halifax, Nova Scotia, May 18, 2007, (TSX - CDH): Corridor Resources Inc. (CDH - TSX) reported today that the McCully E-38 well has been drilled to a total measured depth of 3203 metres after drilling 200 metres into the Frederick Brook shale formation. The well encountered a total of 80 metres of net gas pay in the upper Hiram Brook formation based on well logs using a 4% porosity cut-off. E-38 is located approximately two kilometres east of the D-48 well, and is the 22nd successful gas well in the McCully Field. The gas pay was encountered in an upper set of Hiram Brook sands that are not present in most McCully wells located to the west of E-38, where these sands are cut off by the Sussex unconformity. The &A& and &B& sands, which are the main pay intervals in wells to the west of E-38, are thin and appear to be tight at the E-38 location. The Frederick Brook shale shows evidence of natural fractures and associated gas shows. The well is being cased and suspended in preparation for fraccing and production testing operations in August prior to placing the well on production later this fall. The Nabors #4 drilling rig will be relocated to drill the McCully J-38 well from the same surface pad to a bottom-hole location approximately 1000 metres northeast of the surface location.
Corridor Resources Inc. is a Halifax, Nova Scotia based company focused on exploring and developing natural gas resources in the McCully Field and surrounding areas of southern New Brunswick. The Company is in the latter stages of constructing a field gathering system, a gas plant, and a pipeline lateral to connect the McCully Field to markets through the Maritimes & Northeast Pipeline (M&NP). The Company plans to initiate natural gas production to M&NP by mid June, 2007, at a planned initial gross rate of 35 mmscf/day (approximately 63% net to Corridor), and has a continuous development drilling program underway to add reserves and production capacity as field development expands. Corridor also has a number of potentially high impact exploration projects planned in New Brunswick and elsewhere in eastern Canada.
For further information:
Corridor Resources Inc.#301, 5475 Spring Garden Road,
Halifax, Nova Scotia
B3J 3T2
Contact: Norman W. Miller, President and CEO
Tel: (902) 429-4511
Fax: (902) 429-0209
Web: http://www.corridor.ca/
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.
