Corridor Completes Drilling Operations at McCully E-67

Corridor Resources Inc. reported that drilling and logging operations at the McCully E-67 well have been completed. The well was drilled to a total depth of 4130 meters encountering 18 meters of indicated net gas pay in the "B" sand of the Hiram Brook formation and over 1160 meters of Frederick Brook shale.

However, the well failed to encounter sands in the Dawson Settlement formation at this location and reached total depth in "red beds" consisting primarily of siltstone and shale. Significant shows of natural gas were encountered while penetrating the Hiram Brook "B" sand and in extensive naturally fractured shale intervals within the Frederick Brook formation. As previously disclosed, it was necessary to flare significant amounts of natural gas during tripping operations while drilling through the Frederick Brook shale. Corridor is undertaking an "open-hole" completion in the Frederick Brook formation and plans to tie the well into the gathering system to facilitate long-term evaluation of the production potential of this extensive shale section. The Hiram Brook "B" sand has been cased for fracturing and completion at a future date. Potash Corporation of Saskatchewan Inc. is a 50% working interest partner with Corridor in the E-67 well.

Production of the J-38 well has been initiated to Corridor's gas plant at a current rate of approximately 3 mmscf/day. A production log run in the well during testing operations indicated that a high percentage of the bitumen laden gas sands in this well are contributing to the production stream. This is encouraging for numerous future wells which Corridor plans to drill to the north and east of the J-38 well.

The McCully J-47 well is drilling ahead at a measured depth below 3280 meters, having encountered an extensive sequence of indicated natural gas bearing sands in the upper Hiram Brook formation. Once total depth has been reached, the well will be logged and cased in preparation for fracturing operations planned for this summer.

Planning for the drilling and completion of the Elgin horizontal shale well has commenced, including determination of the design parameters and a preferred location for the well. The drilling and multi-stage fracturing of this well are scheduled to be completed in the fourth quarter of 2008.

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