corridor resources - 22-jun-2010 investor day presentation

7/28/2019 Corridor Resources - 22-Jun-2010 Investor Day Presentation

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Investor Day Presentations

June 22, 2010


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http://www.sedar.com/


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McCully Field Overview

Don LeBlancChief Reservoir/Production Engineer


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McCully Production

6/30/2010 4

A total of 39 wells have

been drilled into theMcCully structure (plus 1in the Caledonia oilstructure)

Currently, there are 30producing wells inMcCully

To the end of May 2010,McCully has produced28.9 Bscf

Average rate for May2010 was 18.9 mmscf/d


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2010 Well Activity

(to mid-June 2010)

6/30/2010 5

One horizontal well (L-37)was drilled into the structure

to target the shallow G sands

The purpose of the well wasto evaluate a non-fracture

stimulation completion option

The well was completed over75% of its length with anuncemented perforated casing

So far tests have yielded low-rate gas (200 mscf/d)

Evaluation is on-going

20

00m

1500m


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2010 Field Activity

(to mid-June 2010)

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Stage 1 of a workoverprogram designed tostabilize and increase field

production, 3 wells weretargeted for remedial work

The wells had various

chemical/mechanicaltreatments applied and theproduction response wasmonitored for 30 days

On an aggregate basis,maximum uplift for all 3 wellswas 2.5 mmscf/d

The 30 day average upliftfor the 3 wells was 1.5mmscf/d


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McCully

There has been a planned reduction in drilling activity

in the McCully Field during 2009 & 2010

As expected, the initial high rates of decline observedat the wells has become a more conventional decline

2010 field activities are being targeted to increaseand stabilize production


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McCully Production Operations

Doug BaileyProduction Operations Manager


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McCully Facilities

30 gas producing wellsdirectionally drilled from11 drilling pads

A field gathering systemconsisting ofapproximately 20 km ofburied 6, 8 and 10

pipe54 km of buried 8 gastransmission line toMaritimes and NortheastPipeline (M&NP)

A gas processing plantdesigned for 30 mmscfd

2400 HP salescompressor


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McCully Operations Performance

2009 operating costs 20% less than 2008

2009 injuries none for staff, 1 minor for contractors 2009 spills none in 2009


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Inlet Compressor Design

2 Stage Unit Suction Pressure 200psig

2100 HP Electric Driver with VFDInlet separator sized to accommodate piggingevents

Minimum capacity 35mmcfd (45 to 50 mmcfdunder normal conditions)

Designed and project managed by in-house staffEstimated Cost = $5.9 million


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Project Schedule


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McCully Operations

Inlet Compressor

Inlet Separator


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Assumes compressoravailable on October 1, 2010

Two forecasts: One based on field IPR

(original analysis) One based on calibrated

GAP/MBal/Prosper model

Assuming a 200 psi inletpressure, the calibrated GAPmodel delivers 3500mmscfmore incremental gas over 5years

The two forecasts are similarfor the first 12 months ofproduction

Peak uplift for the first monthshould be around 5 mmscf/d

Planned Inlet Compressor Uplift Analysis


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Frederick Brook Shale Overview

A Significant New Shale Gas Play?

Tom MartelChief Geologist


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Basin-Wide Cross-Section

6/30/2010 17

McCully Field Elgin AreaG-41 N-11W E

Hiram Brook E-G Sands

Hiram Brook A-D Sands

Upper Fredrick Brook

Sussex Group

0

1

2

3

4

Ap

proximateDepth

(km)

5 km

Lower Fredrick Brook


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186/30/2010


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Upper Frederick Brook

- 500 m thick

- Composed of clay, quartz anddolomite

- Tested gas in G-41- GLJ estimates 43.2 TCF GIP

Lower Frederick Brook

- 600+ m thick

- Composed of albite, dolomiteand quartz- Producing gas in F-58- GLJ estimates 24.1 TCF GIP

625 BCF/Mi2


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CONCLUSIONS

Testing and production indicates that both the

Lower and Upper Frederick Brook shale areproductive

This productivity extends widely across the basinfrom the McCully Field to the Elgin area.

Although basin area is small, the shale thicknessmeans that the amount of resource is large

6/30/2010 21


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Green Road G-41 Test Results

Frederick Brook Shale

Don LeBlancChief Reservoir/Production Engineer


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Elgin FB Testing: G-41

Two zones in the vertical

Green Road G-41 wellwere tested within theFrederick Brook duringNovember/December

2009

Each zone was fracd with

LPG prior to testing


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G-41 FB Zone 1 Test

6/30/2010 24

Zone 1: 2047.5m -2052.5m

Frac: 46 tonnes, 307.6 m3 LPG

Test Duration: 83.5 hours (3.5 days)

Peak Gas Rate: 0.98 mmscf/d @ 1130 psiFinal Gas Rate: 0.43 mmscf/d @ 145 psi

Overall Average Rate: 0.64 mmscf/d


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G-41 FB

Zone 2 Test

6/30/2010 25

Zone 2: 1852.5m -1893.5m (3 intervals)

Frac: 68 tonnes, 393.6 m3 LPG

Test Duration: 185 hours (7.5 days)

Gas Rate #1: 3.6 mmscf/d @ 2106 psiGas Rate #2: 7.1 mmscf/d @ 1526 psiPeak Rate: 11.7 mmscf/d @ 1076 psiFinal Rate: 3.0 mmscf/d @ 699 psi

Overall Average Rate: 5.5 mmscf/d


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Elgin FB Shale Test

G-41 FB Zone #1 tested the shaly section of the FB

G-41 FB Zone #2 tested silty stringers within the FB

Based on the success of this test program, GLJ has

assigned the following contingent resources to Elgin:

Low Estimate 395 Bscf

Best Estimate 494 BscfHigh Estimate 708 Bscf

Ref: Corridor Resources Inc., Gross Lease, Contingent Resources, Effective December31,2009 by GLJ Petroleum Consultants. These estimates do not take into account the 50% working interest that may be earnedby Apache in approximately 116,000 acres of lands covering the Frederick Brook shale. See Corridors 2009 Annual Information for more information, a copy ofwhich is available at www.sedar.com.


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Apache Drilling/Completion Plans

Larry HuskinsDrilling/Completions Team Lead


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Location

Green Road B-41

located on existing Green Road

well pad. drilled to 2,100 metres depth

before turning horizontal foranother 1,000 metres.

adjacent to original CorridorGreen Road G-41 well

Wille DeMille G-59

north-west of Elgin drilled to a depth of 2,400

metres before turning horizontalfor another 1,000 metres.

adjacent to original CorridorWille DeMille J-59


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Seismic Green Road Wells

Zone of Interest

Gas log

B 41 Surface

500 m


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Fresh Water Storage

Engineered pits forfresh water

Lined with a geotextile

2 pits planned with25,000 m3 of waterstorage each

~120 m x 120 m


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Fraccing

1000 m horizontal legs in both Green Road &

Wille DeMille~5 fracs in each well

4000 m3 of water per stage

300 tonnes of proppant (sand) per stage

planned rate of 16 m3/min


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Shale Gas Fraccing


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Other Corridor Activities

6/30/2010 37


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ANTICOSTI EXPLORATIONOBJECTIVES

6/30/2010 38

Trenton/Black River HTD Play



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Drilling Program 2010

6/30/2010 39

1.5 Million Acres

(900k Corridor, 600k Petrolia)


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Chaloupe TBR Prospect


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ANTICOSTI MACASTY (UTICA) SHALE

Investigating its Shale Oil Potential


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Macasty (Utica) Cross-Section

J upiter

SchmittChaloupe

Saumon


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Summary

We will soon begin testing the relatively shallowTrenton/Black River oil play on Anticosti

We will also begin to evaluate the shale oilpotential the Macasty (Utica) shale

6/30/2010 44


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2010 Anticosti

Drilling Program

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Larry HuskinsDrilling/Completions Team Lead


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Objectives

Technical Goals Flow oil from Black River carbonate

Core & wireline log from Macasty Shalein one well

Suspend wells if they flow oil (P&A

otherwise)(no completion or fraccing )


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Anticosti & Prospects


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Schedule

PlanningWork

MobilieEquipmenttoDock

SailEquipmenttoIsland

ReEnterJupiter

Drill

Surface

&

Intermediate

holesfor3easternwells

Drillmainhole&test3

easternwells

Suspend&MoveoffIsland

October

2010

SeptemberAugustJulyJuneMayApril


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Vessel - Aivik

Length overall 109.90 M

Breadth 19.40 M

Depth 12.95 MDraft 5.92 M

G.R.T. 7,048 M.T.

N.R.T. 5,043 M.T.

Indicated horsepower 5,200 BHP

Speed 14 KTSBuilt 1980

Class BV 1 3/3 E

RO-RO ICE 111 UMS

Bale Cubic 13,388 M3

Deadweight 4,860 M.T.

Container capacity 280 TEUsLane meters (2.5 M

wide)

1,150

Heavy lift derricks 2 X 155 M.T.

(310 M.T. in tandem)


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Well Design

4 Wells in Total PlannedJupiter Nearly horizontal -> target Mingan

Saumon / Chaloupe / Schmitt or Bell at highangle (65-75 inclination ) -> target BlackRiver

All wells drilled under-balance (using nitrogen)to encourage oil flow

No casing planned for main hole open holetest to flow oil

Suspend wells if oil is found for futureoperations (P&A if no oil found)

Drilled with a Hybrid Coiled Tubing Drilling Rig(drills conventionally with drill pipe or using a reel of coiled tubing)

Conductor444.5mm/339.7mm casing

Surface to ~180m311mm/245mm casing

Intermediate to ~1000m

- Set between the Trenton & the

Black River 216mm hole/178mm casing

- Drilled on 89 mm Coiled Tubing

- WBM at ~1050kg/m3

Main Hole

- 2200m for Jupiter

- ~1500m for others

- No casing (open hole flow test)

- UB with N2/Water

- WBM Density of ~800 kg/m3


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Hybrid / Coiled Tubing Drilling Unit


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Old Harry

A Giant Prospect



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Corridor Resources Inc.

250,000 Acres


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Brion Island #1

Bradelle L-49OH


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Summary

Old Harry is a giant structure that could be theflagship for a new basin opportunity

corridor resources - 22-jun-2010 investor day presentation

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