History of the McCully Field
Corridor Resources drilled the natural gas discovery well at the McCully Field, near Sussex New Brunswick in September 2000. The well was drilled in partnership with Potash Corporation of Saskatchewan ("PCS") as a result of a farmin which provided that PCS would pay 100% of the costs of the well to earn a 50% working interest in four sections (3,561 acres). On April 23, 2003, Corridor and PCS commenced processing and transportation of natural gas from the McCully A-67 and P-66 wells for use at the PCS potash mill. Under the terms of a Joint Operating Agreement between Corridor and PCS, Corridor and PCS jointly produce sufficient natural gas from the McCully A-67 and P-66 wells to meet a daily mill demand of approximately 2.0 mmscfpd of sales gas.
On June 28, 2007, Corridor Resources commissioned a gas plant and pipeline to carry Corridor and PCS gas to the Maritimes and Northeast Pipeline system to distribute gas to New Brunswick and the NE United States. Thirty-five wells were drilled in the McCully Field by the end of 2008, all of which encountered natural gas. As of March 2009, a total of 26 wells have been completed and placed on production through Corridor’s gas gathering system and gas plant. Corridor Resources is continuing to develop the McCully natural gas field with the drilling and completion of additional wells that significantly extend the producing area of the field in a northeasterly direction.
