Corridor Provides An Update Report On Well Drilling, Completion And Testing Operations At McCully

Halifax, Nova Scotia, December 12, 2007, (TSX - CDH): Corridor Resources Inc. (CDH - TSX) reported today on the current status of continuing well drilling, completion and testing operations at the McCully natural gas field in southern New Brunswick. A total of 27 fracs in eight wells (F-58, H-76, D-67, P-76, D-66, E-38, J-38 and I-67) have been completed or remain to be undertaken by the end of this year (with approximately 80% now completed). The duration of fracturing operations has been considerably longer than in previous years due to the greater number of fracs undertaken, driven partly by the objective of completing all or most of the productive intervals in each of these wells. In addition, the average size of the fracs completed this year has been significantly larger than in previous years, resulting in larger quantities of frac fluids to be recovered before the true productive capacity of the wells can be determined. Extended testing operations for most of the fractured wells only commenced in late November due to equipment availability limiting simultaneous fracturing and extended testing operations. All of the results represent a current snapshot of tested rates of gas production at the present stage of frac fluid recovery. More comprehensive flow test results are expected to be made available by late January, 2008 following planned well treatment and additional testing operations described briefly below.

Well	Zone	Flowing Time (hrs)	Flowing THP (psi)	Flowing CHP psi	Water Rate bwpd	Gas Rate (mmscfpd)	Transient PI scfpd/psi2	Total Frac Fluid bbls	Frac Fluid Recovered
F-58	Shale	133.5	n/a	0	26	0.247	0.024	9,744	39.0%
D-66	A/B/D/E/F	96.2	218	702	74	1.780	0.200	12,684	40.4%
P-76	B	71.4	426	799	21	1.639	0.178	7,218	34.6%
I-67	A/B/C/D	96	244	581	40	0.650	0.072	8,127	35.5%
E-38	Shale/C/D	-	-	-	-	-	-	6,721	28.0%
J-38	C/D/E	95.7	431	919	60	2.355	0.284	12,398	31.0%
Note: The E-38 well has not been tested.

F-58 Frederick Brook

Corridor to date has undertaken three small fracs and an acid squeeze in the Frederick Brook formation in the McCully F-58 well as part of an extended program to determine the best techniques for producing gas from shale, frequently a lengthy process in a new area. After conducting an acid squeeze on all the perforated intervals in the Frederick Brook formation and following a cumulative flowing time of 133.5 hours, the shale formation in the F-58 well was producing gas at a total rate of 247 mcf/day. However, 6000 barrels (61%) of frac fluids remain in the fracture system, restricting natural gas production. To date, the gas flow has been tested through 4-1/2" casing and has not been strong enough to lift substantial amounts of frac fluids accumulating in the well-bore without the assistance of a coiled tubing unit.

As next steps, Corridor plans to frac the Hiram Brook "B" sand in this well later this month, complete the well with a production tubing string and commence long-term production. The "B" sand will assist the shale in lifting frac fluids from the wellbore. In this manner, Corridor believes that, over time, it will eventually be able to determine the production capability of the Frederick Brook formation in this well.

Hiram Brook Frac Results and Bitumen Considerations

The flow test results for the Hiram Brook sands that were fractured this year are expected to take longer than previous wells to clean up, partly because of the larger volumes of frac fluids used in conducting larger fracs. Following flow testing operations, a hydrocarbon/polymer compound was found in two of the wells (D-66 and J-38), which has reduced the rates of gas flow. In addition, two of the wells drilled this year (J-38 and E-38) contained larger than expected amounts of bitumen in the reservoirs, reducing permeability and flow rates. Over the next number of weeks Corridor plans to undertake a series of workover operations on some of these wells in an effort to produce them at higher rates. The next report on the results from these re-tests is expected to be made available by late January, 2008. The H-76 well was fractured in the upper "A" and lower "B" sands and appears not to be gas productive. Corridor will consider fracturing the upper "B" sand later in 2008.

New Well Tie-Ins

New well tie-ins to the gas gathering system have been delayed because of the extended fracturing and testing program. Corridor expects that all new tie-ins will be completed and the wells placed on-stream over the period from mid January to late February.

D-67 well results

The McCully D-67 well has been drilled and cased to a total depth of 2867 meters, having encountered a total of 39 meters of indicated net gas pay, including 24 meters in the B" sand and 15 meters in the "A" sand. Corridor plans to conduct four fracs in this well before the end of the year, including one frac in the Frederick Brook shale, one in the "A" sand and two in the "B" sand. The D-67 well is scheduled to be tied-in to the gathering system by late February.

Revised Production Forecast

Current gross production from the McCully Field, including gas delivered to the PCS mill, is approximately 32 mmcf/day. Field production from the 15 currently connected wells will continue to decline marginally until the newly fractured wells are tied in to the gathering system in January and February. Once the new wells are on stream and based on the current test results, Corridor expects gross field production to be in the range of 37 to 42 mmcf/day. If the planned workover and testing operations are successful, post tie-in production rates could be significantly higher. Corridor's gas plant capacity is currently indicated to be 45 mmcf/day. In addition, production to the PCS mill is forecast to continue at approximately 2 mmcf/day.

E-67 Deep Test

The McCully E-67 well is drilling ahead at a depth of approximately 2230 meters, commencing the underbalanced portion of the well. It is intended to penetrate and evaluate the gas potential of the Hiram Brook and Frederick Brook formations and to explore for and evaluate the gas potential of the deeper Dawson Settlement sands. Total depth for the well is planned for 4500 meters, and results are expected to be available in late January. Total cost of the well is projected to be $9.4 million, shared equally by PCS and Corridor.

McCully Drilling Program, December 2007

PEI Frac Plans

Today Corridor is commencing a frac program on the Green Gables #3 and New Harmony #1 wells on Prince Edward Island. Over the next week, three fracs are planned to be conducted - two at Green Gables and one at New Harmony - followed by initial testing of the two wells. Additional (contingent) fracs (two at Green Gables and one at McCully) are planned for 2008. Initial test results are expected to be available by late January. The completion work at New Harmony is part of a Corridor farmin on PetroWorth Resources' Exploration Licence 03-02 announced on May 11th, 2007.

Newfoundland Offshore Licence Award

On Monday, December 3rd, 2007, the Canada - Newfoundland and Labrador Offshore Petroleum Board announced that Corridor was the successful bidder for a 51,780 hectare exploration licence situated on the eastern end of the Old Harry prospect off the west coast of Newfoundland in the Gulf of St. Lawrence. The licence carries a minimum work commitment of $1,521,000 to be conducted over a five year initial term. Acquisition of this licence is part of Corridor's long-term efforts to open up hydrocarbon exploration offshore in the Gulf of St.Lawrence.

Other activities

In other activities, the McCully J-76 well has been drilled, logged and cased to a total measured depth of 3100 meters. The well encountered 15 meters of net porous "B" sand, while the "A" sand was thin and tight at this location. The well also penetrated 237 meters into the Frederick Brook formation and has been suspended as a potential gas producer from the Frederick Brook shale and possibly the "B" sand. Corridor expects the earliest time the well will be completed and tied-in to the gas plant would be during next summer's frac campaign. The results of the J-76 and H-76 wells confirm that the western limit of the McCully Field has been reached in these particular fault blocks. In respect of the current frac campaign, Corridor expects to provide an update on test results in early December. While the program has taken longer to implement than anticipated it remains on budget.

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/