Corridor Cheers for Production Increase at McCully Gas Field

McCully Drilling Program
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Corridor has reported that completion and production operations at its McCully gas field in New Brunswick are progressing, with this year's program expected to be completed by the end of November. A total of seven wells are in various stages of completion, testing and clean-up as part of Corridor's ongoing activities aimed at increasing natural gas production from the McCully Field.

The C-48 well has been frac'ed and tested through production tubing, and is expected to be placed on-stream by the end of November at a projected initial production rate of 1.4 mmscf/day. The C-57 well has been completed, tested and shut-in awaiting final hook-up planned for the end of next week, and is projected to flow gas at an initial rate of 1.9 mmscf/day.

The I-47 horizontal well is awaiting equipment to repair a down-hole leak prior to undergoing multi-stage frac'ing and testing of the "E" sand followed by a planned connection to the gathering system by the end of November. The J-47 well has been frac'ed, completed and is currently producing gas on test at a rate of 6.8 mmscf/day prior to undergoing final hook-up and is expected to be placed on production by the end of November at a projected initial rate of 7.1 mmscf/day.

The K-48 well has been frac'ed and tested through production tubing, and is expected to be placed on-stream by the end of November at a projected initial production rate of 0.5 mmscf/day. The N-66 horizontal well has been frac'ed and is in the early stages of testing prior to being tied into the gas gathering system, expected by the end of November. It is expected that the current test rate of 2.7 mmscf/day will increase following clean-up of frac fluid which is indicated to be lying in the "heel" of the horizontal well and impeding the flow of natural gas.

The P-67 well has been completed and placed on production through a temporary hook-up to the McCully gas gathering system at a choked rate of 5 mmscf/day, and a projected initial rate of 5.1 mmscf/day once a final hook-up is completed, expected by the end of next week.

Once all of the frac'ing, testing and tie-in operations have been completed (anticipated to be by the end of November), Corridor expects the seven new wells to initially contribute in the order of 18 - 24 mmscf/day of gross new gas capacity to add to the 22 mmscf/day of gross current production from previous wells in the field.

Corridor's net production is approximately 70% of gross production. The upper limit of this forecast is dependent upon the successful clean-up and performance of the N-66 and I-47 horizontal wells and will be limited by the current capacity of Corridor's gas plant (anticipated to be 40 - 45 mmscf/day but yet to be confirmed in practice).

In addition, drilling operations at the South Branch G-36 well have been terminated in the Frederick Brook shale formation after reaching a total depth of 2642 meters. The Frederick Brook formation section of the well has been logged and production casing has been run and cemented to total depth. The Nabors #86 drilling rig is being prepared for mobilization to the Elgin area to commence drilling a vertical shale gas appraisal well at the Green Road O-50 location.

The G-36 well is expected to be fracced and flow tested in mid November to evaluate the production potential of the well. 3-D seismic operations covering an area around and to the east of the G-36 well are currently in progress and are expected to be completed by late November.


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