Corridor Resources Begins Production from McCully Field

Corridor Resources reports that natural gas production has commenced from the first two wells in the McCully Field, located near Sussex, New Brunswick in Canada. The gas is being delivered by two pipelines to a gas plant where it is being processed prior to fueling Potash Corporation of Saskatchewan's (PCS) potash mill located two kilometers from the wells. The planned natural gas production rate to meet expected mill demand is 2.3 million cubic feet per day. Corridor's 50% share of the gas production will be priced monthly based on the equivalent cost of No. 2 fuel oil.

The natural gas production from McCully is the first to occur in New Brunswick since production from Stoney Creek, New Brunswick's only other gas field, ended in 1991.

The gas devoted to the PCS Potash mill from the first two McCully wells represents only a small fraction of the natural gas reserves and production potential of the McCully Field. Corridor is in discussions with several prospective farmin partners to undertake the next stage of drilling and development of the field, with a view to connecting the field by pipeline to the main Maritimes & Northeast trunkline passing approximately 45 kilometers to the north of McCully. Timing for the resumption of drilling at McCully will depend upon the outcome of these discussions.


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