Corridor Completes Wireline Operations at McCully K-57 Well

Corridor Resources reports that the drilling rig is being removed from the McCully K-57 well location in Canada following completion of wireline logging operations. The well logs confirmed approximately 35 net meters of potential gas pay within a gross thickness of the Hiram Brook Formation of over 500 meters with excellent correlation to the two McCully producing gas wells (A-67 and P-66). The geological descriptions and log porosities of many of the gas sands suggest improved reservoir quality in comparison to the same sands in the two producing wells. Further analysis of the well logs is currently under way. However, during a short initial flow test, the K-57 well flowed gas rates between 350,000 and 500,000 cubic feet per day with 100 psi surface flowing pressure, indicating formation damage may have occurred during drilling operations.

The K-57 well costs to date have exceeded the initial AFE estimate of $2.9 million by approximately 30 percent.

The conflicting results for the K-57 well suggest that it is premature to reach definitive conclusions regarding the well's potential. Accordingly, following dismantling and removal of the drilling rig, expected to be completed by Friday, April 30, workover operations will commence at the well aimed at removing reservoir damage in the wellbore area and stimulating gas production. A service rig is being mobilized to the location to conduct workover operations. Details of the planned workover operations will be released once they are finalized. Results from the operations will be announced as soon as they become available, expected to be by the third week in May.