Corridor Reports on McCully J-38 Well Results
Halifax, Nova Scotia, August 3, 2007, (TSX - CDH): Corridor Resources Inc. (CDH - TSX) reported today the results of the McCully J-38 well which was drilled to a total measured depth of 3169 metres. The well was directionally drilled in a northeast direction to intersect the upper Hiram Brook reservoirs in a separate fault block at a bottom-hole location approximately 1100 metres from the surface drill-pad. (Please refer to the map below showing surface and bottom-hole well locations). The well encountered a total of 58 metres of indicated net gas pay in the upper Hiram Brook formation based on well logs, and is the 24th successful gas well in the McCully Field. The well penetrated the full section of the Hiram Brook formation, reaching total depth in the top of the Frederick Brook formation. The well encountered strong gas shows in the sands, with pressure measurements indicating the reservoirs are significantly over-pressured. The fluid content and productivity of the reservoirs will be confirmed during fraccing and flow-back testing operations planned for late August. Corridor plans to tie the well into the McCully gas gathering system this fall and to commence natural gas production to the McCully gas plant in December. The Nabors #4 (double) drilling rig will be relocated to Prince Edward Island next week to commence drilling the Green Gables #3 well (100% Corridor) around the middle of August.
In other activities, the Nabors #86 (triple) drilling rig is drilling ahead at a depth of 1700 metres in the Sussex Group at the McCully H-76 well. Corridor expects to complete drilling, logging and casing operations at H-76 by the end of August and will report on well results at that time. Corridor has a 100% working interest in the H-76 well.
Corridor is preparing to undertake a multi-well frac program at McCully, commencing approximately August 12th. Current plans are to frac, test, complete and later tie in seven new McCully wells, including the I-67, F-58, P-76, E-38, D-66, J-38 and H-76 wells. Included at the commencement of this program is a two-stage testing and fraccing of two intervals in the Frederick Brook shale formation at the McCully F-58 well drilled earlier this year.
Prince Edward Island
Corridor also announced today that it has exercised its option to drill an exploratory well as part of a farm-in program to earn a 50% interest in Oil and Natural Gas Permit No. 03-02 held by PetroWorth Resources Inc. and located in eastern Prince Edward Island. The well will be drilled in September to a minimum required depth of 2800 metres as per the terms of the Data Exchange and Option Agreement announced on May 11th, 2007.
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 has completed construction of a field gathering system, a gas plant, and a pipeline lateral connecting the McCully Field to markets through the Maritimes & Northeast Pipeline (M&NP). The Company initiated natural gas production to M&NP on June 28, 2007 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.
