E-38 is located approximately two kilometers east of the D-48 well and is the 22nd successful gas well in the McCully Field. The gas pay was encountered in an upper set of Hiram Brook sands that are not present in most McCully wells located to the west of E-38, where these sands are cut off by the Sussex unconformity.
The "A" and "B" sands, which are the main pay intervals in wells to the west of E-38, are thin and appear to be tight at the E-38 location. The Frederick Brook shale shows evidence of natural fractures and associated gas shows. The well is being cased and suspended in preparation for fraccing and production testing operations in August prior to placing the well on production later this fall. The Nabors #4 drilling rig will be relocated to drill the McCully J-38 well from the same surface pad to a bottom-hole location approximately 1,000 meters northeast of the surface location.
Corridor Resources Inc. is a Halifax, Nova Scotia-based company focused on exploring and developing natural gas resources in the McCully Field and surrounding areas of southern New Brunswick. The company is in the latter stages of constructing a field gathering system, a gas plant, and a pipeline lateral to connect the McCully Field to markets through the Maritimes & Northeast Pipeline (M&NP). The company plans to initiate natural gas production to M&NP by mid June, 2007, at a planned initial gross rate of 35 mmscf/day (approximately 63% net to Corridor), and has a continuous development drilling program underway to add reserves and production capacity as field development expands. Corridor also has a number of potentially high-impact exploration projects planned in New Brunswick and elsewhere in eastern Canada.
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