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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