Last updated on April 20, 2014 at 17:20 EDT

Corridor Resources Inc.: McCully Natural Gas Production Projected to Increase

October 28, 2008

Corridor Resources Inc. (TSX: CDH) reported today that completion and production operations at its McCully gas field in New Brunswick are progressing, with this year’s program expected to be completed by the end of November. A total of seven wells are in various stages of completion, testing and clean-up as part of Corridor’s ongoing activities aimed at increasing natural gas production from the McCully Field. The following table sets forth a current snapshot of the results to date for each of the seven wells, followed by a brief discussion summarizing the current status and plans for completion, testing and tying in the wells:

 ----------------------------------------------------------------------- --- Well           Sands  Test    Flow  Choke  Tested  Tubing   Trans-  Rate @            Completed  Date   Dura-   Size    Rate   Pres-    sient    FTHP                               tion    (mm) (mmscf/   sure Product-  equals                             (hours)           day)   (psi)  tivity     500                                                              Index     psi                                                           (scf/day  (mmscf                                                              /psi2    /day)                                                              after                                                             4 days) -------------------------------------------------------------------------- C-48    C, D, E & MB   Oct      93   6.75     1.4     630    0.160     1.4                       2008 C-57  A, B, C, D & E   Oct      96    In-     1.8     753    0.221     1.9                       2008           Line I-47               E   N/A       -      -       -       -        -       - J-47     D, E, F & G   Oct      65    In-     6.8     713    0.789     7.1                       2008           Line K-48       B, C, & D   Oct      96     13     0.5     586    0.071     0.5                       2008 N-66               A   Oct    frac   frac     2.7     179     frac       -                       2008    flow   flow                     flow                               back   back                     back P-67           A & B   Oct      96    In-     4.0    1473    0.532     5.1                       2008           Line -------------------------------------------------------------------------- -------------------------------------------------------------------------- Total                                        17.2             16.0 -------------------------------------------------------------------------- 

The C-48 well has been frac’ed and tested through production tubing, and is expected to be placed on-stream by the end of November at a projected initial production rate of 1.4 mmscf/day. The C-57 well has been completed, tested and shut-in awaiting final hook-up planned for the end of next week, and is projected to flow gas at an initial rate of 1.9 mmscf/day. The I-47 horizontal well is awaiting equipment to repair a down-hole leak prior to undergoing multi-stage frac’ing and testing of the “E” sand followed by a planned connection to the gathering system by the end of November. The J-47 well has been frac’ed, completed and is currently producing gas on test at a rate of 6.8 mmscf/day prior to undergoing final hook-up and is expected to be placed on production by the end of November at a projected initial rate of 7.1 mmscf/day. The K-48 well has been frac’ed and tested through production tubing, and is expected to be placed on-stream by the end of November at a projected initial production rate of 0.5 mmscf/day. The N-66 horizontal well has been frac’ed and is in the early stages of testing prior to being tied into the gas gathering system, expected by the end of November. It is expected that the current test rate of 2.7 mmscf/day will increase following clean-up of frac fluid which is indicated to be lying in the “heel” of the horizontal well and impeding the flow of natural gas. The P-67 well has been completed and placed on production through a temporary hook-up to the McCully gas gathering system at a choked rate of 5 mmscf/day, and a projected initial rate of 5.1 mmscf/day once a final hook-up is completed, expected by the end of next week. Once all of the frac’ing, testing and tie-in operations have been completed (anticipated to be by the end of November), Corridor expects the seven new wells to initially contribute in the order of 18 – 24 mmscf/day of gross new gas capacity to add to the 22 mmscf/day of gross current production from previous wells in the field. Corridor’s net production is approximately 70% of gross production. The upper limit of this forecast is dependent upon the successful clean-up and performance of the N-66 and I-47 horizontal wells and will be limited by the current capacity of Corridor’s gas plant (anticipated to be 40 – 45 mmscf/day but yet to be confirmed in practice).

In addition, drilling operations at the South Branch G-36 well have been terminated in the Frederick Brook shale formation after reaching a total depth of 2642 meters. The Frederick Brook formation section of the well has been logged and production casing has been run and cemented to total depth. The Nabors #86 drilling rig is being prepared for mobilization to the Elgin area to commence drilling a vertical shale gas appraisal well at the Green Road O-50 location. The G-36 well is expected to be fracced and flow tested in mid November to evaluate the production potential of the well. 3-D seismic operations covering an area around and to the east of the G-36 well are currently in progress and are expected to be completed by late November.

A map of the McCully Development can be found at the following address: http://media3.marketwire.com/docs/McCullyMap.pdf

Corridor is a junior resource company engaged in the exploration for and development and production of petroleum and natural gas onshore in New Brunswick, Prince Edward Island and Quebec and offshore in the Gulf of St. Lawrence. Corridor currently has reserves of natural gas at only one property, the McCully Field near Sussex, New Brunswick. In June 2007, Corridor completed the construction of a field gathering system, a gas plant and a pipeline lateral connecting the McCully Field to markets through the Maritimes & Northeast Pipeline.

Forward Looking Statements

This press release contains certain forward-looking statements and forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of Canadian securities laws. All statements other than statements of historical fact are forward-looking statements. Forward-looking information typically contains statements with words such as “anticipate”, “believe”, “plan”, “continuous”, “estimate”, “expect”, “may”, “will”, “project”, “should”, or similar words suggesting future outcomes. In particular, this press release contains forward-looking statements relating to proposed frac’ing, testing, completion and tie-in of wells at the McCully Field and Corridor’s projected natural gas production.

Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized. Actual results will differ, and the difference may be material and adverse to Corridor and its shareholders.

These forward-looking statements are based on Corridor’s current beliefs as well as assumptions made by, and information currently available to, Corridor concerning results from such development program. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that forward-looking statements will not be achieved. These factors may be found under the heading “Risk Factors” in Corridor’s Annual Information Form for the year ended December 31, 2007, and also in Corridor’s most recent interim financial statements and management’s discussion and analysis.

The forward-looking statements contained in this press release are made as of the date hereof and Corridor does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

 Contacts: Corridor Resources Inc. Norman W. Miller President 902-429-4511 902-429-0209 (FAX) www.corridor.ca

SOURCE: Corridor Resources Inc.