Corridor Produces First Gas from New Brunswick Field

Today New Brunswick Premier Shawn Graham and Corridor Resources CEO Norman Miller officially turned the valve and started the flow of New Brunswick natural gas towards homes and businesses connected to the Maritimes & Northeast Pipeline in Canada and the Northeastern United States.

At a ceremony that took place at the Corridor Resources McCully Gas Field gas began flowing into the gas plant and pipeline leading to the Maritimes & Northeast Pipeline.

A gas flare marked the start of production of approximately 35 million cubic feet of gas per day flowing from the Penobsquis, New Brunswick field. Production is expected to grow to 45 million cubic feet per day by November - enough energy to heat 250,000 homes.

At today's event, members of Corridor's staff, government officials, contractors and community members joined representatives from the Corridor board of directors to celebrate the start of production. Officials and special guests were given the opportunity to tour Corridor's well sites, gas plant and one of its drilling rigs.

"This is the culmination of a long journey," said Norman Miller, "but we've had many partners with us on the journey including our contractors, the community members who have worked with us, Potash Corporation of Saskatchewan Inc and the Province of New Brunswick. With their support we have arrived at this event."

The $200 million project will generate approximately $6 million in royalty revenues for the project annually, based on the planned initial rate of production.

The project has so far injected approximately $15 million directly into the local economy, and has created up to 20 permanent jobs in Penobsquis.

"We're committed to working with local suppliers and contractors in our development activities and production operations." says Norman Miller. "We've worked with the community from the beginning, and we will continue to make that a priority."

"Our initial production at this facility is just the beginning. We have a continuous development drilling program underway to add gas reserves and production. This will include evaluation of deeper sediments at McCully, as well as other prospects in the region. In many ways this announcement is a stepping stone to potential future projects," said Miller.

The McCully Natural Gas project is operated by Corridor Resources Inc., a natural gas exploration and production company based in the Maritimes. Corridor has been exploring for natural gas in southern New Brunswick since 1995, encountering and overcoming many challenges on the road towards production of natural gas from depths of more than a mile and a half below Penobsquis, New Brunswick in the Kennebecasis Valley.

The project includes 13 initial production wells, a field gathering system, gas plant, and a 50 kilometers pipeline lateral connection to M&NP.


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