Corridor Completes Drilling Operations at the McCully O-66 Well

McCully Field, New Brunswick
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McCully Field
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Corridor Resources says that drilling and casing operations at the McCully O-66 well have been successfully completed. The well was drilled with a conventional mud system, reaching a total measured depth of 2561 meters in the Fredericks Brook shale formation after penetrating 35 meters of net gas pay in the Hiram Brook "A" and "B" sands (25 meters in the "A" sand and 10 meters in the "B" sand). A string of 4-1/2 inch diameter casing has been run and cemented from total depth to surface in preparation for a frac stimulation program to be conducted at the well later this month. No attempt will be made to flow the well before the frac program has been completed.

Frac stimulation operations have commenced at the McCully C-67 and G-67 wells as part of a multi-well frac stimulation program. Immediately following completion of frac operations at each well, the well will undergo an initial flow test to recover some of the frac fluids. Each well will then be shut in for an initial period of three to four weeks before undergoing further testing to determine flow rates following settling out of unrecovered frac fluids in the wellbore and surrounding wellbore area. Corridor plans to report on flow results at that time.

The drilling rig is currently being relocated to the McCully B-58 well location, where plans are to drill a Hiram Brook test to a depth of approximately 2500 meters. The B-58 well is being drilled in place of the previously planned D-57 well, so that drilling operations will not interfere with frac stimulation operations at the O-66 well (the O-66 and planned D-57 wellheads are located on the same surface well pad).

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 O-66 well is the eleventh 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, O-66 and planned B-58 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. APA is currently updating this report to reflect the gas reserves status at Corridor's fiscal year end (August 31, 2005).


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