Corridor Resources Inc. reported today on the current status of continuing well drilling, completion and testing operations at the McCully natural gas field in southern New Brunswick. A total of 27 fracs in eight wells (F-58, H-76, D-67, P-76, D-66, E-38, J-38 and I-67) have been completed or remain to be undertaken by the end of this year (with approximately 80% now completed).

The duration of fracturing operations has been considerably longer than in previous years due to the greater number of fracs undertaken, driven partly by the objective of completing all or most of the productive intervals in each of these wells. In addition, the average size of the fracs completed this year has been significantly larger than in previous years, resulting in larger quantities of frac fluids to be recovered before the true productive capacity of the wells can be determined.

Extended testing operations for most of the fractured wells only commenced in late November due to equipment availability limiting simultaneous fracturing and extended testing operations. All of the results represent a current snapshot of tested rates of gas production at the present stage of frac fluid recovery.

-58 Frederick Brook

Corridor to date has undertaken three small fracs and an acid squeeze in the Frederick Brook formation in the McCully F-58 well as part of an extended program to determine the best techniques for producing gas from shale, frequently a lengthy process in a new area. After conducting an acid squeeze on all the perforated intervals in the Frederick Brook formation and following a cumulative flowing time of 133.5 hours, the shale formation in the F-58 well was producing gas at a total rate of 247 mcf/day. However, 6000 barrels (61%) of frac fluids remain in the fracture system, restricting natural gas production. To date, the gas flow has been tested through 4-1/2" casing and has not been strong enough to lift substantial amounts of frac fluids accumulating in the well-bore without the assistance of a coiled tubing unit.

As next steps, Corridor plans to frac the Hiram Brook "B" sand in this well later this month, complete the well with a production tubing string and commence long-term production. The "B" sand will assist the shale in lifting frac fluids from the wellbore. In this manner, Corridor believes that, over time, it will eventually be able to determine the production capability of the Frederick Brook formation in this well.

Tags: Corridor Resources Inc.