corridor resources - 13-june-2012 presentation

7/28/2019 Corridor Resources - 13-June-2012 Presentation

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June 2012

UPDATE


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Corridor Resources Highlights

Atlantic Canadian E&P Company with extensive upside potential & sustainability Three high impact plays at various stages of de-risking

Due to relatively high netbacks, prudent cost control and financialmanagement, Corridor is sustainable through period of low natural gas pricesin N.A.

Commanding land positions with ~1.6 million net acres in Atlantic Canada Licenses for high-impact prospects range from 4.5 to 9 year years

New Brunswick shale gas play has a best estimate of 67 TCF gross discoveredresource in place

Corridors New Brunswick gas assets access existing gas transmission facilitieswhich connect to premium New England gas markets and Repsols under-utilized LNG facility in N.B.

Anticosti shale oil prospect has best estimate of 20 Bboe petroleum in place

(net to Corridor)

Corridors Old Harry offshore prospect is one of the largest identified geologicalstructures (with promising indicators) in Eastern Canada yet to be explored.

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Sustainability WithEnormous Resource Potential

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Atlantic Canadian Exploration andProduction company with enormousresource potential

Commanding land position of 1.6million net acres in Eastern Canada

Significant upside related to highimpact plays:

- New Brunswick shale gas

- Anticosti shale oil

- Old Harry Prospect

Existing cash flow has allowed Corridorto fund on-going developmentopportunities with no debt drawnthrough period of weak gas prices

Strong team focused on progressinghigh impact plays and maintaining

production at McCully Field

Anticosti900,000 Net Acres

Old Harry250,000 Net Acres

PEI180,000 Net Acres

Southern New Brunswick320,000 Net Acres

For further information, contact:Phillip R. Knoll, (902) 429-4511 [email protected]

Tom Martel, (902) 429-4511 Ext [email protected]

Website: www.corridor.ca


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Atlantic Canada Focused

Large, relatively unexplored area withsignificant resource potential

Retain licences for NB core area andmajor prospects

Higher gas netbacks/ existing

infrastructure tied to N.E. market

- premium to Henry Hub ~ $1.00 in

2011 at Dracut, with heat content

premium 6%

Focus on gaining partners for our 3high-impact prospects

Ability to source additionalopportunities in the region

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2011 Summary

Completed the Anticosti Resource study by Sproule. Best estimate (Sproule) ofundiscovered Total Petroleum Initially in Place of 34 Bboe oil equivalent (20 Bboenet Corridor)

Drilled Will DeMille O-59 in Elgin, N.B.- Strong gas shows

- Good core results- 8 potential frac intervals

Cash flowed $9MM in 2011; reduced G&A costs and capital program in 2011 inrecognition of low gas pricing period

Filed Old Harry Project Description for Exploration Well in early 2011- Due to multiple and lengthy regulatory processes, Corridor received

extension of drilling window to Jan 2016

Retention of licences in New Brunswick, Anticosti and Old Harry- 1.5 million net acres

Focused on partnering our major prospects; engaged Macquarie to assist withFrederick Brook Shale and Old Harry Prospect


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Over 300,000 net acres; highworking interests.

Frederick Brook Shale gas:- 67 TCF gross Discovered

Resources (best estimate)

Producing up to 13 mmcf/d

gross from McCully area- Hiram Brook gas McCullyField 103 BCF 2P grossreserves

- ~25 year reserve life index

Advancing F.B. Shale potentialwith on-going Elgin Program;

completed O-59 drill Q4 2011

Recent N.B. Governmentannouncement on:

- Oil/Gas EnvironmentalProtection Plan

- New Royalty RegimeDiscussion Paper

McCully/Elgin Exploration andDevelopment Area

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McCully Plant


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Frederick Brook Attributes

Large, contiguous, high working interest~120,000 net acres

Best Estimate of gross Discovered Resourcesof 67 TCF (GLJ Petroleum Consultants Ltd. FrederickBrook Shale Gas Study 2009)

Frederick Brook shales 900 1,100 m ofgross thickness in a strike slip basin

Deep basin has thickened sediments strong possibility of being highly over-pressured

Will DeMille O-59 well has eight intervals

that are potential frac candidates (core analysisindicates some intervals have exceptional permeabilityand porosity for a shale)

Plan to re-test B-41 (Apache well) in June

O-59 Potential Frac Intervals

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O-59 Permeability

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Top graph shows originaldata and includesanalysis from twodifferent labs of the sameChaloupe core

Lower graph shows factor(15) that normalizes the

two data sets plus O-59

Typical highly productive shale gas perms


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G-41 to O-59 Correlation

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COMPARISON OF MAJOR SHALE GAS PLAYS TO THE FREDERICK BROOK SHALE

Frederick Brook* Barnett Haynesville Marcellus Horn River Utica

Age Mississippian Mississippian J urassic Devonian Devonian Ordovician

Estimated Basin area (mi2) 180 5,000 9000 95,000 4,200

Depth (m) 1,500 - 4,000 2,000-2,500 3,000-4,000 1,200-2,500 2,500 700-2,700

Thickness (m) 1100 45-250 60-110 15-75 140-180 30-1,050

TOC (%) 1 - 3 4.5 0.5-4.0 3-12 3-8 0.3-3.1

Porosity (%) 3 - 8 2.5-5.5 8-10 5.5-7.5 5 0.7-8.8

Permeability (nD) Up to 400** 250-300 700 200-300 300

Vitrinite Reflectance (Ro) 1.2 ++ 1.0 -2.0 1.1-3.0 2.2 1.0-3.1

Pressure (psi) 3,000 - 6,000 3,000 - 4,000 12,000 5,000 1,700 - 4,200

Pressure Gradient (psi/ft) 0.53 - 0.6 0.43 -0.50 0.7-0.9 0.4-0.7 0.6 0.46-0.5

Discovered Resource (TCF)*** 67 327 717 1,500 700

Geomechanics (Brittle or

Ductile)Brittle Brittle Brittle Brittle Brittle Brittle

* Frederick Brook data determined by Corridor Resources and third party vendors

** Weatherford analyses (understates permeabilities relative to other laboratories)

*** Estimates of other shale gas plays have not been pr epared in accordance with National Instrument 51-101; are based on

publically available information and refer to original gas in place (which is not a National Instrument 51-101 or COGE term).

The term discovered resources is equivalent to discovered original gas-in-place(OGIP)

Gas Shale Comparison

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Taken from other publically available resources


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Anticosti Island Highlights

1.5 MM gross acres of Macasty (Utica-equivalent) shale held in long-term licenses

Shale is well distributed over the Island

Core analysis shows good porosity andpermeability - thin turbidities and fractures

may enhance permeability Undiscovered Petroleum Initially-in-Place

Best Estimate of 34 Bboe (20 Bboe net toCorridor) Study conducted by Sproule

The Utica has become an exciting oil andgas play in the northeastern US (e.g. presentland valuations are in the $10,000+ per acrerange)

A Schlumberger comparison between theAnticosti Chaloupe #1 well and the OhioOSGS CO2 #1 Utica well indicates thatporosities, permeabilities and hydrocarbonsaturations are very similar

Chaloupe #1 Macasty Shale Oil Advisor Results

80% Oil Saturation

4-6% Effective Oil-Filled Porosity

40meters

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Macasty-Utica Visual Comparison

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Chaloupe #1

Macasty(Anticosti)

Utica/Point Pleasant

(Ohio)

OGS CO2 #1

40meters

Porosity3-5%

Porosity4-6%

TOC2-4%

TOC2-5%


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Well to Well Comparison

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Old Harry Highlights

Opportunity to evaluate one of the largestundrilled geological structures in EasternCanada (43,000 acres/67 sq miles) undersimple four-way closure

Two target horizons: Bradelle and BrionIsland formations

Several direct hydrocarbon indicatorsidentified: satellite seepage slicks,frequency anomalies, amplitude anomalies,and AVO anomalies

Over 1000 km of modern 2-D seismicavailable

Structures aerial extent and potentialreservoir thickness presents hugeopportunity for billion barrel oil or multiTCF gas discovery

Basin Modeling indicates light oil (~55 API)was initially generated and could be fillingthe structure

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Strike and Dip Lines onStructure Map

A

A

B

B

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17/21Dip Line: 98-22

Strike Line: 98-32

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Corridor Resources Inc.

Bradelle Fm

30 m net = 2 Bbbls or 5 Tcf

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Brion Island # 1 DST Test Results

* Upper 10 m sands tested with bot tom-hole DST

* Produced 4,025 feet of salt water in 45 minutes* Calculated the permeability of the tested sands

* Averaged that permeabilit y over the entire zone

* Corrected to 55 API oil with pump and various

drawdowns

Brion Island Old Harry

Test 55 API

Water Oil

Pi (psi) 2,344 -

kh (md-m) 292.4 789.5Net pay (m) 10 30

Effective permeability (md) 29.2 26.3

Fluid vicosity (cp) 0.9 0.5

Productivity Index (bpd/psi) 2.75 13.37

Rate @ 30% drawdown (bopd) - 9,402

Rate @ 75% drawdown (bopd) - 20,163

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Brion Island Fm

170 m net = 10 Bbbls or 25 Tcf?

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Old Harry Regulatory Summary

Corridor submitted its Old Harry Exploratory

Drilling Project Description and E.A. to theC-NLOPB in February 2011

C-NLOPB eventually (with Federal Environment

Ministers recommendation) decided that a Strategic

Environmental Assessment (SEA) for NFLD side ofGulf was required; expected to be completed Q1

2013

Corridors Environmental Assessment (EA) anddrilling permits now expected to be processed in2013

Due to lengthy regulatory processes, Corridor wasgranted extension of drilling window (Phase I of

licence) to Jan 2016

The Quebec and Federal Governments signed anaccord in Mar 2011 to jointly regulate the offshoreon Quebecs side of the Gulf

Quebec has completed SEA and is expected todecide on opening sections of Quebec side of theGulf for oil and gas activities in 2013 21

corridor resources - 13-june-2012 presentation

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