Corridor Resources: Drilling Begins at New Brunswick

Corridor Resources reported that Apache Canada is commencing drilling operations at the Green Road B-41 well, located approximately 4 kilometers north of the village of Elgin, New Brunswick. The well is the first of a planned two well commitment program by Apache to horizontally drill, frac and test a silty section of the Frederick Brook shale formation as part of a farm-out program by Corridor. The B-41 well offsets Corridor's Green Road G-41 vertical well which successfully flowed natural gas following fracing operations in two separate intervals within the Frederick Brook shale formation (please refer to Corridor press releases dated November 25 and December 15, 2009). Completion and testing operations at B-41 are not expected to commence until later in the year.

Anticosti Exploration Program

Corridor also announced that this week it has completed the mobilization of a coiled tubing drilling rig and associated equipment to Port Menier on Anticosti Island in preparation for drilling four onshore oil exploration wells on the Island this summer. It is expected that the drilling operations will commence at the first well (Jupiter) around the beginning of July. The primary objective of the program is to evaluate the potential for light oil production from the carbonates of the Trenton/Black River formation. Corridor is partnered with Petrolia Inc. of Quebec for all four wells. As part of the planned drilling program, Corridor and Petrolia plan to cut a conventional core in the oil saturated Macasty shale (Utica equivalent) in one of the wells to evaluate the shale oil potential of this formation. The Macasty shale blankets the entire island and is estimated by Corridor to contain very large volumes of oil-in-place within the Corridor/Petrolia joint lands (approximately 1.6 million acres).

McCully L-37 Operations and Results

Corridor has completed perforating the seven inch casing over several sand intervals within a horizontal section of the L-37 wellbore in the McCully Field. Initial efforts to flow test the well without stimulation have resulted in relatively low rates of natural gas production. The well is currently shut in for a pressure build-up before conducting further testing operations. Corridor retains the option to frac a portion of the completion interval if necessary, depending upon the results of the current testing program.