Corridor and Petroworth Revise PEI Exploration Agreement
Halifax, Wednesday, July 30, 2008: Corridor Resources Inc. (CDH - TSX) reported today that it has entered into a revised agreement with PetroWorth Resources Inc. regarding natural gas exploration activities on Prince Edward Island. Under the terms of the revised agreement PetroWorth will finance 100% of the costs of fracturing and testing the initial two zones in the Green Gables #3 well in early August to a maximum cost of $2 million to earn a 10% working interest in Corridor's Green Gables licence 04-03. Corridor expects to announce the flow test results by the end of August. Corridor shall have the option (until September 5, 2008) to elect to locate and drill a total of two exploration wells (including at least one frac in each well) on lands comprising PetroWorth licences 03-01, 03-02, 04-05, 04-06 and 04-07 prior to July 31st, 2009 to earn a 50% working interest in these licences. Corridor and PetroWorth have also agreed that each shall have the right to back into a 50% working interest in any licence acquired by the other party on Prince Edward Island during the next five years. This new agreement revises the previous agreement between Corridor and PetroWorth announced on May 11th, 2007.
In drilling activities, the McCully I-47 well is drilling ahead in the horizontal leg of the well at a measured depth of 3620 meters in the "E" sand of the Hiram Brook formation. Corridor expects to complete drilling operations at this well this week and to undertake a fracturing program later this summer using the Packers Plus multi-stage fraccing technology. Corridor holds a 100% working interest in the I-47 well. Following completion of drilling operations at I-47, the Nabors Rig #86 is to be relocated to drill the South Branch G-36 exploration well, commencing around the second week of August.
The McCully N-66 horizontal well is drilling ahead at a measured depth of 1550 meters prior to setting intermediate casing. Corridor plans to drill this well horizontally through the "A" sand of the Hiram Brook formation (between the M-66 and K-66 wells) and to undertake a fracturing program later this summer using the Packers Plus multi-stage fraccing technology. Corridor and Potash Corporation of Saskatchewan each hold a 50% working interest in the N-66 well.
In other completion activities, Corridor reported that fracturing and initial testing operations are under way at the McCully P-67 and C-57 wells. Corridor expects to report on the flow test results for these wells following completion of testing operations in September, at which time the wells will be tied into the McCully gas gathering system and commence production to markets through Maritimes & Northeast Pipeline. Corridor and Potash Corporation of Saskatchewan each hold a 50% working interest in the P-67 and C-57 wells.
Well fracturing, completion and testing activities at McCully are also scheduled for several other wells this summer and fall, and will include operations at the McCully I-47, N-66, J-47, K-48 and C-48 wells. These wells, along with the E-67 well, are planned to be tied into the McCully gas gathering system during the late summer and early fall. Fracturing and testing operations are also planned for a well to be drilled at C-29 and for the three vertical shale gas wells to be drilled this fall at Elgin.
Corridor is a junior resource company engaged in the exploration for and development and production of petroleum and natural gas onshore in New Brunswick, Prince Edward Island and Québec and offshore in the Gulf of St. Lawrence. Corridor currently has reserves of natural gas at only one property, the McCully Field near Sussex, New Brunswick. In June 2007, Corridor completed the construction of a field gathering system, a gas plant and a pipeline lateral connecting the McCully Field to markets through the Maritimes & Northeast Pipeline.
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 and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of Canadian securities laws. All statements other than statements of historical fact are forward-looking statements. Forward-looking information typically contains statements with words such as "anticipate", "believe", "plan", "continuous", "estimate", "expect", "may", "will", "project", "should", or similar words suggesting future outcomes.
Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized. Actual results will differ, and the difference may be material and adverse to Corridor and its shareholders.
Forward-looking statements are based on Corridor's current beliefs as well as assumptions made by, and information currently available to, Corridor concerning future natural gas commodity prices, future natural gas production levels, the ability to obtain equipment in a timely manner to carry out development activities, the ability to market natural gas successfully to current and new customers, the ability to obtain financing on acceptable terms, and the ability to add production and reserves through development and exploration activities. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that forward-looking statements will not be achieved. These factors may be found under the heading "Risk Factors" in Corridor's Annual Information Form for the year ended December 31, 2007.
The forward-looking statements contained in this press release are made as of the date hereof and Corridor does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
