Corridor to Run Casing Liner at McCully F-58

McCully Drilling Program
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Corridor Resources Inc. is preparing to run and cement a 4-1/2" casing liner from total depth at 3754 meters to the shoe of the 7" casing at 2831 meters at the McCully F-58 well in the McCully Field, located near Sussex in southern New Brunswick.

The well encountered over 1000 meters of shaley dolomite and dolomitic shale in the Fredericks Brook rock formation but failed to reach the Dawson Settlement formation. Expectations are that the Dawson Settlement formation is now not expected to be encountered before a depth of at least 4000 meters, and limitations of the drilling rig prevent drilling much beyond the current total depth.

As reported on February 15, 2007, the Fredericks Brook formation contains several thick, highly fractured, over-pressured gas bearing sections distributed throughout the drilled interval. Significant shows of natural gas were encountered during drilling operations, and it was necessary to flare significant amounts of gas during tripping operations. Formation pressures in the bottom section of the hole are abnormally high and are estimated to be in excess of 6000 pounds per square inch (psi). Corridor had initially planned to conduct some open-hole straddle tests of one or two of these intervals to attempt to determine and measure the capabilities of these intervals to flow gas. However, the Company has decided to forego these open-hole tests, primarily for safety (well control) reasons.

Following installation and cementing of the casing liner, Corridor plans to mobilize the Nabors #4 drilling rig to drill the McCully E-38 well, located approximately 2 kilometers east of the D-48 well. Corridor plans to contract and mobilize a workover rig to the F-58 well-site as soon as a rig can be contracted and road bans permit to undertake production testing of certain sections of the Fredericks Brook formation. These tests will involve perforating the casing liner over the selected test intervals and acidizing the formation prior to undertaking flow testing operations. The upper portion of the Fredericks Brook formation will be reserved for potential frac stimulation operations planned for August and September.

The Nabors #86 triple drilling rig is currently in transit to New Brunswick from Alberta and is expected to commence drilling the McCully P-76 well during the second week of March, once construction of the drill pad is completed. While both the P-76 and E-38 wells are planned as Hiram Brook completions, Corridor is now considering deepening both of these wells to test at least the upper part of the Fredericks Brook formation.

Corridor is evaluating seismic and other geological information with a view to determining prospective future locations to penetrate and evaluate the natural gas potential of the Dawson Settlement formation.

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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