Corridor Drills 23rd Successful McCully Gas Well

McCully Drilling Program
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Corridor Resources Inc. reported results of the McCully D-66 well, which was drilled to a total measured depth of 3300 meters in the Frederick Brook formation. The well was directionally drilled in a southeast direction to encounter the Hiram Brook reservoirs at a lateral distance of approximately 1400 meters from the surface location. The well took longer to drill than expected due to the large horizontal offset distance between the surface and bottom-hole locations. The well encountered a total of 43.5 meters of net gas pay in the Hiram Brook formation based on well logs (including 18 meters in the "B" sand and 13 meters in the "A" sand), and is the 23rd successful gas well in the McCully Field. The well penetrated 173 meters into the top of the Frederick Brook formation, consisting primarily of shale and siltstone and exhibiting minor fracturing and gas shows. The well is being cased and suspended in preparation for fraccing and production testing operations planned for later this summer. Following well completion and testing operations, the D-66 well will be tied into the McCully gathering system this fall and is expected to commence natural gas production to the McCully gas plant in November. The Nabors #86 (triple) drilling rig is being relocated to drill the McCully H-76 well (100% Corridor) from the same surface pad. The D-66 well is a joint well (50/50) with Potash Corporation of Saskatchewan.

In other activities, the Nabors #4 (double) drilling rig is drilling ahead at a depth of 2830 meters in the Hiram Brook formation at the McCully J-38 well. Corridor expects to complete drilling, logging and casing operations at J-38 by the end of July and will report on well results at that time. Corridor has a 100% working interest in the J-38 well. Following completion of drilling activities at J-38, the Nabors #4 rig will be mobilized to Prince Edward Island, where Corridor plans to spud the Green Gables #3 well in early August. The same rig would be utilized to drill a second well on PEI if Corridor elects to drill a well on PetroWorth license 02-03 in the eastern part of the Island.

Corridor plans to mobilize a second 'triple' drilling rig to McCully in September to bolster its ability to directionally drill wells with long offsets from surface locations and to probe deeper into the McCully structure. Plans are to spud a deep well this fall to penetrate up to 5000 meters in a triple test of the Hiram Brook, Frederick Brook and (potentially) the Dawson Settlement formations.

Corridor is preparing to undertake a multi-well frac program at McCully, commencing in early August. Current plans are to frac, test, complete and later tie in seven new McCully wells, including the I-67, F-58, P-76, E-38, D-66, J-38 and H-76 wells. Included at the commencement of this program is a two-stage testing and fraccing of two intervals in the Frederick Brook shale formation at the McCully F-58 well drilled earlier this year.

Corridor continues to ramp up gas production at McCully following initial deliveries to Maritimes & Northeast Pipeline (M&NP) on June 28th, 2007, with July production averaging over 25 million cubic feet per day. Corridor expects production to M&NP to reach rates of 35 million cubic feet per day (22 million/day net to Corridor) later in the summer once all 13 initial wells are on stream and producing to capacity.


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