Apache to Follow-Up with HZ Wells in Elgin Area

Corridor Resources announced Apache Canada's drilling and completion plans for 2010.

Apache Plans for 2010

Apache has provided Corridor with preliminary information regarding their drilling and completion plans for 2010 relating to their farm-in on Corridor's interests in the Elgin area. Apache has indicated to Corridor that it plans to commence drilling operations in June 2010 at the Green Road location north of Elgin. The initial well is expected to be drilled from the G-41 well-pad to twin the upper part of Corridor's G-41 well and then drilling a horizontal leg in the silty/sandy interval within the upper part of the Frederick Brook formation. Following completion of drilling operations at this location, Apache plans to move the drilling rig approximately three kilometers to the southwest to drill a second well from a new well pad at the original Will DeMille #1 location. The new well is expected to twin the upper part of the Will DeMille #1 well and Apache then plans to drill a horizontal leg in the upper part of the Frederick Brook shale formation. Corridor, in partnership with Columbia Natural Resources Canada, had drilled the original Will DeMille #1 vertical well in 1999 and abandoned the well after flaring gas during drilling operations in the upper part of the Frederick Brook shale. Later this year, Apache has advised Corridor that it plans to undertake multi-stage fracturing operations in the horizontal legs of each of these wells and to conduct flow testing to evaluate the commercial potential of developing natural gas from the Frederick Brook formation in this area. "We are very excited about Apache's plans to drill and fracture horizontal wells as follow-ups to the two previously drilled wells," said Norman Miller, Corridor's President. "Success in these new wells could open up development of the enormous natural gas resources known to be present in the Frederick Brook formation in the Elgin area."

Apache has until June 1, 2011 to spend a committed $25 million to undertake operations pursuant to its farm-in agreement with Corridor prior to electing whether or not to spend a further $100 million to earn 50% of Corridor's interest in 116,000 acres in the Elgin/Sussex area.


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