Jan 14, 2008 08:30 ET
HALIFAX, NOVA SCOTIA--(Marketwire - Jan. 14, 2008) - Corridor Resources Inc. (TSX:CDH) reported today that under-balanced drilling operations at the McCully E-67 well have been terminated in favour of completing the drilling of the well using a conventional over-balanced drilling fluid. While drilling with an under-balanced drilling fluid, the E-67 well encountered a section of highly fractured and faulted shale in the upper 150 m of the Frederick Brook formation at a depth of approximately 2630 meters. Following two failed attempts to drill through the highly fractured shale section, it was concluded that the instability of the well-bore would prevent further deepening of the well using an under-balanced drilling process. Only minor gas flow was recorded while drilling under-balanced through the fractured Frederick Brook section, indicating that the fractured shale was incapable of significant rates of gas production in this well. Corridor has plugged back the well with cement into the shoe of the 9-5/8" casing and has reverted to an over-balanced mud system in an attempt to drill through the unstable hole section in the upper Frederick Brook shale formation. Corridor's objective is to penetrate and evaluate the deeper dolomitic shale section encountered in the Frederick Brook formation near the bottom of the F-58 well where higher formation pressures and significant gas shows were encountered in early February, 2007. Corridor also plans to drill the E-67 well to a total depth of approximately 4500 meters in an attempt to reach and evaluate the sandstone reservoirs of the Dawson Settlement formation. Results from an evaluation of this deeper section of the E-67 well are expected to be available towards the end of February, 2008. Potash Corporation of Saskatchewan is a joint venture partner with Corridor in the E-67 well.
Other Activities
Corridor is currently drilling the McCully K-48 well (please refer to the map below) and has just set the 9-5/8" intermediate casing at a depth of 1548 m. Corridor plans to drill and evaluate the Hiram Brook formation at this location, with results expected to be available in February, 2008.
The map of "McCully Drilling Program" is available at the following address: http://www.ccnmatthews.com/docs/map_corridor.jpg
Gross McCully natural gas production for the month of December averaged approximately 30 mmcf/day (20 mmcf/day net to Corridor).
An additional update, including frac and flow test results for wells at McCully and New Harmony (PEI), will be provided later this month, as well the 2008 drilling plans, production forecast and operating budget.
Retirement
Corridor also announced today the retirement of Paul J. Hopkins as Vice President and a director of the Corporation, effective January 18, 2008. Paul is one of the founders of the Corporation and has made considerable contributions to its growth and development. The Board of Directors expresses gratitude to Paul for his contributions, and extends best wishes for his retirement.
The strategic hiring of key managers over the past two years has ensured an effective transition of operational management. Larry Huskins will continue to be responsible for the implementation of the Corporation's drilling and well completion operations and Doug Bailey will continue to manage all of the Corporation's field construction and production operations in New Brunswick. Dena Murphy will continue to manage all of the Corporation's matters relating to health, safety and the environment.
Corridor Resources Inc. is a Halifax, Nova Scotia based company focused on exploring and developing natural gas resources in the McCully Field and surrounding areas of southern New Brunswick. The Company has completed construction of a field gathering system, a gas plant, and a pipeline lateral connecting the McCully Field to markets through the Maritimes & Northeast Pipeline (M&NP). The Company initiated natural gas production to M&NP on June 28, 2007 and has a continuous development drilling program underway to add reserves and production capacity as field development expands. Corridor also has a number of potentially high impact exploration projects planned in New Brunswick and elsewhere in eastern Canada.
For more information, please contact
Corridor Resources IncNorman W. Miller, President
902-429-4511
902-429-0209 (FAX)
www.corridor.ca
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