Corridor Begins Drilling P-76 Well in McCully Field

McCully Drilling Program
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Corridor Resources says that drilling operations have commenced at the P-76 well in the McCully natural gas field located near Sussex in southern New Brunswick. The well is the first to be drilled at McCully using the Nabors #86 (triple) drilling rig which was recently mobilized to the field from Alberta. The well is designed to evaluate and test the Hiram Brook formation at a location approximately 600 meters west of the M-66 well and to penetrate and evaluate the top 550 meters of the underlying Frederick Brook dolomitic shale formation. It is expected that it will take approximately 40 days to drill, log and case the well in preparation for well stimulation (fraccing) and testing operations planned to be undertaken in late summer.

The Nabors #4 (double) drilling rig has been moved to a surface location approximately 2 kilometers east northeast of the McCully D-48 well where Corridor plans to drill the McCully E-38 well, the 22nd well to be drilled in the McCully Field. E-38 will be directionally drilled to evaluate the natural gas potential of the Hiram Brook formation and the upper part of the Frederick Brook formation at a bottom-hole location approximately 600 meters south southeast of the surface location (please refer to the accompanying map). Corridor plans to spud the well early next week and to drill and case it to a measured depth of approximately 3200 meters by mid May in preparation for completion activities planned for late summer.

Corridor is making preliminary plans to perforate and flow test two of the fractured dolomitic shale intervals encountered in the Frederick Brook formation at the McCully F-58 well (please refer to Corridor's February 23 news release). Completion plans will be finalized following receipt of results from laboratory tests on drill cuttings and sidewall core samples and the contracting of equipment and services required to conduct the operations. These initial flow tests will not be fracture stimulated, and are expected to be conducted in late May or early June following finalization of testing plans. Corridor plans to frac these intervals (if necessary) and to conduct further testing when frac equipment is on site in late summer.

Corridor is nearing completion of construction of the main pipeline which will connect the McCully gas plant with the Maritimes & Northeast Pipeline (M&NP). Construction of the gathering system and gas plant is at an advanced stage. However, timing of required approvals, weather conditions and general tightness in the construction industry have contributed to increased capital costs and have delayed the expected completion date of the facilities. Corridor now projects the capital cost of these facilities to total $59.6 million (compared to our previous forecast of $52.5 million) and for production to M&NP to commence in early June.


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