Corridor Completes Testing at McCully J-66 Well

Corridor Resources reports that well stimulation (fraccing), initial testing and well clean-up operations have been completed at the McCully J-66 well in the McCully natural gas field located near Sussex, New Brunswick. J-66 is the third well to be stimulated in the current frac program (following the earlier reporting of initial results for M-66 and K-66). The J-66 well flowed gas from the "A" sand at a measured rate of 1.06 million standard cubic feet per day (mmscf/d) and a flowing wellhead pressure of 410 pounds per square inch (psi) at the end of a 65 hour flow period. The well was flowed through a 9.53 millimeter choke and was still cleaning up after recovering 22% of injected completion fluids during the test period. Following completion of initial flow testing from the "A" sand and fraccing of the "B" sand (2 intervals), the J-66 well flowed gas from the "B" sand at a measured rate of 2.88 mmscf/d and a flowing wellhead pressure of 1066 psi at the end of a 69 hour flow period. The "B" zone was flowed through a 9.53 millimeter choke and was still cleaning up after recovering 27% of injected completion fluids during the test period. The flow rates reported are for the initial clean-up period immediately following fraccing operations. The M-66, K-66 and J-66 wells are currently shut-in and plans are to conduct further flow testing and to report final results at the end of the frac stimulation program, expected to be in early October. The frac equipment has been mobilized and well completion operations (stimulation and testing) have commenced at the J-67 well, to be followed with completion operations at the B-58, E-57 and D-57 wells. Potash Corporation of Saskatchewan and Corridor are joint participants in the M-66, K-66, J-66, J-67, E-57 and D-57 wells.

Fraccing and testing operations are being conducted on a total of seven wells during August and September, and Corridor intends to continue to provide updates on the results of these activities as they proceed. Corridor considers the initial three wells (M-66, K-66 and J-66) to be the most productive of the seven wells to be stimulated and tested this summer, based on log evaluations and sidewall core analyses.

Corridor also announced that the McCully E-57 well has been drilled to a total depth of 2673 meters. The well encountered approximately 40 meters of indicated net gas pay thickness in the Hiram Brook formation, including 18 meters in the "A" sand and the remainder in the "B", "C" and "D" sands. The Nabors #4 drilling rig is being relocated to drill the I-67 well from the same surface drill pad. The I-67 well is designed to intersect the Hiram Brook Formation at a location approximately 700 meters WSW of the surface location. The E-57 well is the 18th well drilled to date in the McCully field that has encountered natural gas bearing sands in the Hiram Brook Formation. The well has been logged and cased to total depth in preparation for frac stimulation operations planned to be conducted at the well in September.

On Friday, August 18, Corridor received environmental approval from the New Brunswick Minister of Environment with respect to Corridor's Stage 2 McCully Development Plan, subject to certain conditions. On Wednesday, August 23, the New Brunswick Public Utilities Board (NBPUB) held a pre-hearing conference in Sussex to establish procedures regarding the approval process for the midstream facilities. As a result of that meeting, the NBPUB established public hearing dates of September 27 and 28 to consider issues relating to approval of Corridor's development plans. Construction of the project facilities can commence only when the NBPUB has issued a construction permit.

Corridor is a junior oil and gas exploration and production company, headquartered in Halifax, Nova Scotia, with interests onshore in New Brunswick, Prince Edward Island and Quebec, and offshore in the Gulf of St. Lawrence.


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