Corridor Completes Drilling Operations at the McCully

McCully Drilling Program
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Corridor Resources reports that drilling and casing operations at the McCully G-67 sidetrack well have been successfully completed. The initial G-67 wellbore encountered a significantly reduced reservoir section in a fault zone, leading to the decision to re-drill the Hiram Brook section to penetrate the reservoir section at a location approximately 100 meters south of the initial wellbore and on the up-thrown side of the fault. The G-67 sidetrack was drilled with a conventional mud system, reaching a total measured depth of 2470 meters in the Fredericks Brook shale formation after penetrating 39 meters of net gas pay in the Hiram brook "A" and "B" sands (21 meters in the "A" sand and 18 meters in the "B" sand). This represents the thickest combined net pay section for the "A" and "B" sands encountered to date in the McCully field. Conventional core was cut in the "A" sand, recovering 20 meters in total and of which 15 meters is net gas bearing reservoir sand. Data from the cored section will be very valuable in helping to design a frac stimulation program for the well. A 4-1/2 inch diameter casing liner has been run and cemented across the Hiram Brook formation in preparation for a frac stimulation program planned to be conducted at this well (and other McCully wells) this fall. No attempt will be made to flow the sidetrack well until the frac program has been completed. Potash Corporation of Saskatchewan (PCS) is a 50% participant in the G-67 well and sidetrack.

The drilling rig is currently being relocated over the McCully C-67 wellhead, where plans are to run a casing liner across the Hiram Brook pay zone in preparation for frac stimulation treatments to be conducted at the well this fall. The rig will then be moved to the K-57 well location to run and cement a casing liner over the Hiram Brook pay section in that well. Following operations at K-57, the rig will be relocated to drill and case the McCully O-66 well to a bottom hole location approximately 700 meters southwest of the McCully A-67 discovery well. PCS has confirmed that, for budget reasons, it will not be participating in any additional McCully activities before next calandar year.

The McCully field, located near Sussex in south central New Brunswick, is estimated to contain in excess of one trillion cubic feet of gas-in-place in the Hiram Brook formation. Two wells have been on production since April, 2003 supplying natural gas at an average rate of two million cubic feet per day to a limited local market. The G-67 well is the tenth well to be drilled in the McCully field and is part of the build-up of reserves and production capacity to supply significant volumes of natural gas to markets in New Brunswick and New England. Corridor intends to connect the McCully field by a 30 mile pipeline to the Maritimes & Northeast pipeline system. The C-67, G-67, K-57 and planned O-66 wells are located within an area that was independently appraised by APA in December, 2004, and that represents less than 20% of the total field area. The APA reserves report assigned proven gas-in-place of 217 billion cubic feet (bcf) and proven and probable recoverable reserves of 119 bcf (79 bcf net to Corridor's interest) to the area assessed.


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