Corridor Completes Production Testing at McCully Wells

Corridor Resources has now completed production testing of the McCully wells that were fracced this past summer. Four wells (B-58, E-57, D-57 and H-28) have recently been retested following short, approximately one-month, shut-in periods. The results of the initial clean-up tests and results for the follow-up retests for the four wells were recorded at the end of the respective flow periods and are presented in the table below.

The B-58, E-57 and D-57 wells all showed improvement in their productive capacity relative to the initial test rates. Corridor anticipates further improvement in their productive capacities following the additional shut-in period prior to Stage 2 production start-up. The B-58 well has been fracced in both the "A" and "B" sands. However, subsequent mechanical problems in the well resulted in a blockage in the wellbore between the "A" and "B" sands. Efforts to eliminate the blockage have failed and consequently the well has been completed as a single zone "B" producer at this time.

The wells listed in the table above are in addition to the ten McCully wells (O-66, M-66, K-66, J-66, J-67, C-67, G-67, K-57, D-48 and J-65) which have been previously fracced, completed and tested and which will also be tied into the new gas plant as part of Stage 2 development. They are also in addition to the two initial McCully wells (A-67 and P-66) which continue to flow gas to the PCS well at a rate of approximately 2 mmscf/d).

The H-28 well was fracced in an unnamed sand at a depth of approximately 2800 meters. During testing, the well was slugging liquids (mainly frac water) and was unable to unload much of the approximately 300 cubic meters of frac fluids that remain unrecovered in the wellbore and formation. Following a significant shut-in period, Corridor anticipates that the well's flow performance will improve significantly in a manner similar to that experienced in the past at the D-48 and J-65 wells. The H-28 well, drilled in 2002, is located approximately 5 kilometers east of the nearest Phase 2 planned producer (ie D-48), and consequently is not planned to be tied into the gas plant at this time.

Deep Dawson Settlement Test

The Nabors #4 drilling rig is currently on standby, awaiting government approval for the construction of a well pad at the F-58 location in preparation for drilling a deep well to a planned depth of approximately 3500 meters to test the natural gas potential of both the Hiram Brook and Dawson Settlement Formations at that location. The proposed F-58 well pad is located approximately 400 meters northwest of the McCully B-58 well (please see map above) and is designed to encounter the Dawson Settlement Formation at a depth approximately 200 meters higher than the deep test previously planned at the O-76 location. The F-58 well will be the 20(th) well drilled to date in the McCully field. Construction of the F-58 well pad will commence as soon as government approval for the site is obtained, with drilling operations expected to commence approximately in mid November.

Planned construction of the O-76 well pad will commence as soon as government approval for the site is obtained, providing a surface location for future McCully wells in that area of the field.

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.

Well  Timing of    Sands   Flow Choke   Flow Wellhead uctivity
      Well Test  Fracced Period  Size   Rate Pressure    Index
                         (hours)  (mm)(mmscf     (psi)    (scf/
                                          /d)              day/

B-58  September        B     34  7.15    1.3     1263    0.149
        October        B     96  7.94    1.8      844     0.171

E-57  September        A     37  7.93    0.7      742     0.078
        October        A     96 10.32    1.6      413     0.163

D-57  September        A     61  8.73    0.5      230     0.045
        October        A     96  7.14    1.0      630     0.105

H-28  September  unnamed     46  7.15    0.3      470     0.023
        October  unnamed    120  50.8    0.1       22       tbd

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