Corridor Updates Operations at McCully

McCully Drilling Program
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Corridor Resources Inc. reported on the current status of continuing well drilling, completion and testing operations at the McCully natural gas field in southern New Brunswick.

A total of 27 fracs in eight wells (F-58, H-76, D-67, P-76, D-66, E-38, J-38 and I-67) have been completed or remain to be undertaken by the end of this year (with approximately 80% now completed). The duration of fracturing operations has been considerably longer than in previous years due to the greater number of fracs undertaken, driven partly by the objective of completing all or most of the productive intervals in each of these wells.

In addition, the average size of the fracs completed this year has been significantly larger than in previous years, resulting in larger quantities of frac fluids to be recovered before the true productive capacity of the wells can be determined. Extended testing operations for most of the fractured wells commenced in late November. More comprehensive flow test results are expected to be made available by late January 2008.

Current gross production from the McCully Field, including gas delivered to the PCS mill, is approximately 32 mmcf/day. Once the new wells are on stream in January and February, Corridor expects gross field production to be in the range of 37 to 42 mmcf/day. If the planned workover and testing operations are successful, post tie-in production rates could be significantly higher. Corridor's gas plant capacity is currently indicated to be 45 mmcf/day. In addition, production to the PCS mill is forecast to continue at approximately 2 mmcf/day.


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