Halifax, Tuesday, March 3, 2009: Corridor Resources Inc. (CDH – TSX) provided an update today on its exploration, development and production operations in southern New Brunswick. Two additional McCully natural gas wells have been drilled and cased in preparation for fracturing operations scheduled for later this spring. The McCully C-29 well was drilled to a total measured depth of 3390 meters, encountering a total of 51 net meters of indicated natural gas bearing sands. The McCully P-47 well was drilled to a total measured depth of 3178 meters, encountering a total of 93 net meters of indicated natural gas bearing sands. Both wells encountered varying amounts of bitumen in some of the gas bearing intervals.
The following table sets forth the gas bearing net sand thicknesses encountered in the two wells:
Net Sand Thickness (meters)
Sand C-29 P-47
G not present 60
F 10 11
E 18 15
D 12 7
C 11 not penetrated
Total 51 93
The Nabors Rig #86 is preparing to spud the McCully L-38 well to test a large seismic anomaly located approximately 1 kilometer east of the G-48 drill pad. Drilling activities using the Nabors Rig #58 are being temporarily suspended, consistent with Corridor’s previously announced plan to pace 2009 expenditures in accordance with available cash flow.
Corridor is currently out to tender for frac equipment and services to undertake a multi-well frac program commencing this spring. Several wells are being lined up for this year’s completion operations, including the McCully I-47, P-47, C-29 and L-38 wells, the Green Road G-41 shale gas well and, potentially, a step-out well planned to offset the South Branch G-36 oil discovery well. A well planned to explore the potential for oil at a location 4 kilometers southeast of the G-36 well has been deferred pending more study of 3-D seismic acquired in the area last fall.
Testing of the South Branch G-36 oil discovery well is expected to commence later in March, following receipt of the environmental assessment approval. A down-hole pump will be utilized to undertake a long-term test (up to 60 days) to determine the commercial potential for oil production from the G-36 well. Pending the success of this test, a step-out well is planned to be drilled later this spring to evaluate the oil potential in an adjacent drilling spacing unit.
A casing patch has been successfully run in the McCully I-47 horizontal well in preparation for fracture stimulation operations planned for the well later this spring. Corridor continues to experience production problems at the McCully N-66 horizontal well which has been shut in awaiting operations to isolate water production from near the heel of the horizontal well section. Options include a chemical injection to shut off the water or running a packer to isolate the water producing zone once a work-over rig becomes available in the spring.
Corridor will be providing an update on McCully production operations later this month in conjunction with the Company’s year-end reports.
Corridor continues to have preliminary discussions with potential farm-in partners that could help to accelerate evaluation and potential production of natural gas from the Frederick Brook shale formation, initially in the Elgin area.
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
Contact: Norman W. Miller, President and CEO
Tel: (902) 429-4511
Fax: (902) 429-0209
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. In particular, this press release contains forward-looking statements relating to proposed frac’ing, testing and, completion of wells at the McCully Field and Corridor’s projected natural gas production as well as proposed frac’ing of the Green Road G-41 well in the Elgin area.
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.
These forward-looking statements are based on Corridor’s current beliefs as well as assumptions made by, and information currently available to, Corridor concerning results from such development program. 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, and also in Corridor’s most recent interim financial statements and management’s discussion and analysis.
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.