Corridor Completes Drilling Operations at the McCully B-58 Well

Corridor Resources reprots that the McCully B-58 well has been drilled to a total depth of 2493 meters. The well encountered 22 meters of indicated net gas pay in the Hiram Brook formation, including 13 meters in the "B" sand and 9 meters in the "A" sand. The Nabors #4 drilling rig is being relocated to drill the D-57 well to penetrate the Hiram Brook formation at a location to the east of the A-67 discovery well (please see map below).

The B-58 well encountered a significant flow of natural gas from the "B" sand while drilling underbalanced with nitrogen as the drilling fluid. The initial flow rate was substantially greater than the subsequently measured flow rate, potentially due to flush production from the fractured reservoir or possible formation of down-hole hydrates which may have impeded the subsequent gas flow. A steady flow rate of 1.3 million cubic feet per day was recorded at two separate time intervals four days apart during drilling operations. However, drilling problems made it necessary to kill the well with a heavy weight drilling fluid in order to complete the drilling to total depth. The Hiram Brook section of the well has been cased and the well has been suspended in preparation for a frac stimulation treatment expected to be conducted next year.

B-58 was the first McCully well to penetrate the Hiram Brook formation on the north side of a major east/west trending fault in the northern part of the field. The thickness and porosity of the sands encountered at this location were less than encountered in wells to the south of the fault. However, the sands were highly fractured in three separate intervals with evidence for open fractures observed in cuttings and sidewall cores, enhancing the permeability of parts of the reservoir section.

Production testing of the wells that were fraced this year is continuing, including re-tests of the McCully D-48 and J-65 wells. Corridor expects to announce the results of these tests by the middle of December.