Corridor Acquires Two Permits on Prince Edward Island

Corridor Resources has acquired two new exploration permits covering a total area of 264,129 acres in the west central part of Prince Edward Island, Canada. The permits cover a number of natural gas prospects, including the gas-bearing Green Gables structure. The permits are valid for a period of six years.

On Anticosti Island, Corridor is abandoning the re-entry of the Chaloupe well after encountering a flow of salt water following drilling out the abandonment plugs above the Trenton-Black River (TBR) formation. The high pressure and salinity of the salt water indicate that it is sourced from the underlying Romaine formation, known to be fractured and water bearing in the Chaloupe well. The fact that the salt water from the Romaine is apparently in wellbore communication with the lower pressured TBR formation has negated the prospect of testing the TBR for oil at this location. The TBR formation remains prospective for oil at other well locations on the Chaloupe structure and at other prospects on Anticosti Island.

Corridor is in discussions with candidates to provide contractor services for the drilling and completion of future wells at the McCully gas field. The Company is also in discussions with potential parties who may farm in and/or finance Corridor's interests at McCully during the next stage of drilling and completion activities. Pending satisfactorily concluding these discussions, Corridor expects to commence a five-well exploration and development drilling program this fall aimed at developing sufficient natural gas production capacity to initiate a pipeline lateral connection to the main Maritimes & Northeast Pipeline located 30 miles north of the McCully field.