Corridor Resources provides an update on its exploration, development and production operations in southern New Brunswick. Two additional McCully natural gas wells have been drilled and cased in preparation for fracturing operations scheduled for later this spring. The McCully C-29 well was drilled to a total measured depth of 3390 meters, encountering a total of 51 net meters of indicated natural gas bearing sands. The McCully P-47 well was drilled to a total measured depth of 3178 meters, encountering a total of 93 net meters of indicated natural gas bearing sands. Both wells encountered varying amounts of bitumen in some of the gas bearing intervals.

The Nabors Rig #86 is preparing to spud the McCully L-38 well to test a large seismic anomaly located approximately 1 kilometer east of the G-48 drill pad. Drilling activities using the Nabors Rig #58 are being temporarily suspended, consistent with Corridor’s previously announced plan to pace 2009 expenditures in accordance with available cash flow.

Corridor is currently out to tender for frac equipment and services to undertake a multi-well frac program commencing this spring. Several wells are being lined up for this year’s completion operations, including the McCully I-47, P-47, C-29 and L-38 wells, the Green Road G-41 shale gas well and, potentially, a step-out well planned to offset the South Branch G-36 oil discovery well. A well planned to explore the potential for oil at a location 4 kilometers southeast of the G-36 well has been deferred pending more study of 3-D seismic acquired in the area last fall.

Testing of the South Branch G-36 oil discovery well is expected to commence later in March, following receipt of the environmental assessment approval. A down-hole pump will be utilized to undertake a long-term test (up to 60 days) to determine the commercial potential for oil production from the G-36 well. Pending the success of this test, a step-out well is planned to be drilled later this spring to evaluate the oil potential in an adjacent drilling spacing unit.

A casing patch has been successfully run in the McCully I-47 horizontal well in preparation for fracture stimulation operations planned for the well later this spring. Corridor continues to experience production problems at the McCully N-66 horizontal well which has been shut in awaiting operations to isolate water production from near the heel of the horizontal well section. Options include a chemical injection to shut off the water or running a packer to isolate the water producing zone once a work-over rig becomes available in the spring.

Tags: Corridor Resources Inc.