Corridor's McCully D-66 encounters 43.5 m of net pay
2007-07-13 08:05 ET - News Release
Mr. Norman Miller reports
CORRIDOR REPORTS ON MCCULLY D-66 WELL RESULTS
Corridor Resources Inc. has provided the results of the McCully D-66 well which was drilled to a total measured depth of 3,300 metres in the Frederick Brook formation. The well was directionally drilled in a southeast direction to encounter the Hiram Brook reservoirs at a lateral distance of approximately 1,400 metres from the surface location. The well took longer to drill than expected due to the large horizontal offset distance between the surface and bottom-hole locations. The well encountered a total of 43.5 metres of net gas pay in the Hiram Brook formation based on well logs (including 18 metres in the B sand and 13 metres in the A sand), and is the 23rd successful gas well in the McCully field. The well penetrated 173 metres into the top of the Frederick Brook formation, consisting primarily of shale and siltstone and exhibiting minor fracturing and gas shows. The well is being cased and suspended in preparation for fracing and production testing operations planned for later this summer. Following well completion and testing operations, the D-66 well will be tied into the McCully gathering system this fall and is expected to commence natural gas production to the McCully gas plant in November. The Nabors No. 86 (triple) drilling rig is being relocated to drill the McCully H-76 well (100 per cent Corridor) from the same surface pad. The D-66 well is a joint well (50/50) with Potash Corp. of Saskatchewan.
In other activities, the Nabors No. 4 (double) drilling rig is drilling ahead at a depth of 2,830 metres in the Hiram Brook formation at the McCully J-38 well. Corridor expects to complete drilling, logging and casing operations at J-38 by the end of July and will report on well results at that time. Corridor has a 100-per-cent working interest in the J-38 well. Following completion of drilling activities at J-38, the Nabors No. 4 rig will be mobilized to Prince Edward Island, where Corridor plans to spud the Green Gables No. 3 well in early August. The same rig would be used to drill a second well on PEI if Corridor elects to drill a well on PetroWorth licence 02-03 in the eastern part of the island.
Corridor plans to mobilize a second triple drilling rig to McCully in September to bolster its ability to directionally drill wells with long offsets from surface locations and to probe deeper into the McCully structure. Plans are to spud a deep well this fall to penetrate up to 5,000 metres in a triple test of the Hiram Brook, Frederick Brook and (potentially) the Dawson Settlement formations.
Corridor is preparing to undertake a multiwell frac program at McCully, commencing in early August. Current plans are to frac, test, complete and later tie in seven new McCully wells, including the I-67, F-58, P-76, E-38, D-66, J-38 and H-76 wells. Included at the commencement of this program is a two-stage testing and fracing of two intervals in the Frederick Brook shale formation at the McCully F-58 well drilled earlier this year.
Corridor continues to ramp up gas production at McCully following initial deliveries to Maritimes & Northeast Pipeline (M&NP) on June 28, 2007, with July production averaging over 25 million cubic feet per day. Corridor expects production to M&NP to reach rates of 35 million cubic feet per day (22 million per day net to Corridor) later in the