You are on page 1of 52

Investor Day Presentations

June 22, 2010

Forward-Looking Information
This presentation contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements"). In particular, this presentation contains forward-looking statements pertaining to the following: business objectives, plans and strategies; exploration and development plans, including a workover program at McCully, field activities planned for 2010, an inlet compressor uplift at McCully; characteristics of the Upper Frederick Brook shale; contingent resources at Elgin; Apache's drilling and completion plans; a development program at Anticosti, including testing, evaluation and technical goals, and timing thereof; and the potential of "Old Harry". Forward-looking statements are based on Corridor's current beliefs as well as assumptions made by, and information currently available to, Corridor concerning anticipated financial performance, business prospects, strategies, regulatory developments, future natural gas commodity prices, future natural gas production levels, the ability to obtain equipment in a timely manner to carry out development activities, the impact of increasing competition, the ability to obtain financing on acceptable terms, and the ability to add production and reserves through development and exploration activities, and on Apache's plans. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. 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 factors include, but are not limited to risks associated with oil and gas exploration, financial risks, substantial capital requirements, bank financing, government regulation, environmental, prices, risks may not be insurable and reserves estimates. Further information regarding these factors and additional factors may be found under the heading "Risk Factors" in Corridor's Annual Information Form for the year ended December 31, 2009, a copy of which is available at The forward-looking statements contained in this presentation 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. Resource Disclosure "Contingent resources" means those quantities of petroleum estimated, on a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters or a lack of markets. It is also appropriate to classify as "contingent resources" the estimated discovered recoverable quantities associated with a project in the early project stage. Resources and contingent resources do not constitute, and should not be confused with, reserves. Reserves and resources will vary from its reserve and resource estimates, and those variations could be material. There is no certainty that it will be economically viable to produce any portion of the resources. GLJ's contingent resources report includes a "Low Estimate", "Best Estimate" and "High Estimate". The Low Estimate is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90% probability (P90) that the quantities actually recovered will equal or exceed the low estimate. The Best Estimate is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50% probability (P50) that the quantities actually recovered will equal or exceed the best estimate. The High Estimate is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10% probability (P10) that the quantities actually recovered will equal or exceed the high estimate.


McCully Field Overview

Don LeBlanc
Chief Reservoir/Production Engineer

McCully Production
A total of 39 wells have been drilled into the McCully structure (plus 1 in the Caledonia oil structure) Currently, there are 30 producing wells in McCully To the end of May 2010, McCully has produced 28.9 Bscf Average rate for May 2010 was 18.9 mmscf/d
6/30/2010 4

2010 Well Activity

(to mid-June 2010)
One horizontal well (L-37) was drilled into the structure to target the shallow G sands The purpose of the well was to evaluate a non-fracture stimulation completion option The well was completed over 75% of its length with an uncemented perforated casing So far tests have yielded lowrate gas (200 mscf/d)


Evaluation is on-going


2010 Field Activity

(to mid-June 2010)
Stage 1 of a workover program designed to stabilize and increase field production, 3 wells were targeted for remedial work The wells had various chemical/mechanical treatments applied and the production response was monitored for 30 days On an aggregate basis, maximum uplift for all 3 wells was 2.5 mmscf/d The 30 day average uplift for the 3 wells was 1.5 mmscf/d


There has been a planned reduction in drilling activity in the McCully Field during 2009 & 2010 As expected, the initial high rates of decline observed at the wells has become a more conventional decline 2010 field activities are being targeted to increase and stabilize production

McCully Production Operations

Doug Bailey
Production Operations Manager

McCully Facilities
30 gas producing wells directionally drilled from 11 drilling pads A field gathering system consisting of approximately 20 km of buried 6, 8 and 10 pipe 54 km of buried 8 gas transmission line to Maritimes and Northeast Pipeline (M&NP) A gas processing plant designed for 30 mmscfd 2400 HP sales compressor

McCully Operations Performance

2009 operating costs 20% less than 2008 2009 injuries none for staff, 1 minor for contractors 2009 spills none in 2009

Inlet Compressor Design

2 Stage Unit Suction Pressure 200psig 2100 HP Electric Driver with VFD Inlet separator sized to accommodate pigging events Minimum capacity 35mmcfd (45 to 50 mmcfd under normal conditions) Designed and project managed by in-house staff Estimated Cost = $5.9 million

Project Schedule

McCully Operations

Inlet Compressor

Inlet Separator

Planned Inlet Compressor Uplift Analysis

Assumes compressor available 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 inlet pressure, the calibrated GAP model delivers 3500mmscf more incremental gas over 5 years The two forecasts are similar for the first 12 months of production Peak uplift for the first month should be around 5 mmscf/d

Frederick Brook Shale Overview

A Significant New Shale Gas Play? Tom Martel
Chief Geologist



Basin-Wide Cross-Section
0 ApproximateDepth(km) 1 2 3 4
Sussex Group

McCully Field

Elgin Area


Hiram Brook E-G Sands Hiram Brook A-D Sands Upper Fredrick Brook Lower Fredrick Brook

5 km





Upper Frederick Brook - 500 m thick - Composed of clay, quartz and dolomite - Tested gas in G-41 - GLJ estimates 43.2 TCF GIP 625 BCF/Mi2 Lower Frederick Brook - 600+ m thick - Composed of albite, dolomite and quartz - Producing gas in F-58 - GLJ estimates 24.1 TCF GIP

Testing and production indicates that both the Lower and Upper Frederick Brook shale are productive This productivity extends widely across the basin from the McCully Field to the Elgin area. Although basin area is small, the shale thickness means that the amount of resource is large
6/30/2010 21

Green Road G-41 Test Results

Frederick Brook Shale Don LeBlanc
Chief Reservoir/Production Engineer

Elgin FB Testing: G-41

Two zones in the vertical Green Road G-41 well were tested within the Frederick Brook during November/December 2009 Each zone was fracd with LPG prior to testing

G-41 FB Zone 1 Test

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 psi Final Gas Rate: 0.43 mmscf/d @ 145 psi Overall Average Rate: 0.64 mmscf/d



G-41 FB Zone 2 Test

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: Gas Rate #2: Peak Rate: Final Rate: 3.6 mmscf/d @ 2106 psi 7.1 mmscf/d @ 1526 psi 11.7 mmscf/d @ 1076 psi 3.0 mmscf/d @ 699 psi

Overall Average Rate: 5.5 mmscf/d



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 Bscf High Estimate 708 Bscf
Ref: Corridor Resources Inc., Gross Lease, Contingent Resources, Effective December 31,2009 by GLJ Petroleum Consultants. These estimates do not take into account the 50% working interest that may be earned
by Apache in approximately 116,000 acres of lands covering the Frederick Brook shale. See Corridors 2009 Annual Information for more information, a copy of which is available at

Apache Drilling/Completion Plans

Larry Huskins
Drilling/Completions Team Lead

Green Road B-41
located on existing Green Road well pad. drilled to 2,100 metres depth before turning horizontal for another 1,000 metres. adjacent to original Corridor Green Road G-41 well

Wille DeMille G-59

north-west of Elgin drilled to a depth of 2,400 metres before turning horizontal for another 1,000 metres. adjacent to original Corridor Wille DeMille J-59

Seismic Green Road Wells

B 41 Surface

Gas log

Zone of Interest

500 m

Fresh Water Storage

Engineered pits for fresh water Lined with a geotextile

2 pits planned with 25,000 m3 of water storage each ~120 m x 120 m

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

Shale Gas Fraccing

Other Corridor Activities




Trenton/Black River HTD Play Tom Martel
Chief Geologist
6/30/2010 38

Drilling Program 2010

1.5 Million Acres (900k Corridor, 600k Petrolia)



Chaloupe TBR Prospect


Investigating its Shale Oil Potential

Macasty (Utica) Cross-Section


Saumon Chaloupe Schmitt

We will soon begin testing the relatively shallow Trenton/Black River oil play on Anticosti We will also begin to evaluate the shale oil potential the Macasty (Utica) shale



2010 Anticosti Drilling Program

Drilling/Completions Team Lead

Larry Huskins


Technical Goals
Flow oil from Black River carbonate Core & wireline log from Macasty Shale in one well Suspend wells if they flow oil (P&A otherwise)
(no completion or fraccing )

Anticosti & Prospects

2010 April May June July August September October


MobilieEquipmenttoDock SailEquipmenttoIsland


DrillSurface&Intermediate holesfor3easternwells Drillmainhole&test3 easternwells


Vessel - Aivik
Bale Cubic Deadweight Container capacity Lane meters (2.5 M wide) Heavy lift derricks 13,388 M3 4,860 M.T. 280 TEUs 1,150 2 X 155 M.T. (310 M.T. in tandem)

Length overall Breadth Depth Draft G.R.T. N.R.T. Indicated horsepower Speed Built Class

109.90 M 19.40 M 12.95 M 5.92 M 7,048 M.T. 5,043 M.T. 5,200 BHP 14 KTS 1980 BV 1 3/3 E RO-RO ICE 111 UMS

Well Design
Conductor 444.5mm/339.7mm casing Surface to ~180m 311mm/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

4 Wells in Total Planned

Jupiter Nearly horizontal -> target Mingan Saumon / Chaloupe / Schmitt or Bell at high angle (65-75 inclination ) -> target Black River All wells drilled under-balance (using nitrogen) to encourage oil flow No casing planned for main hole open hole test to flow oil Suspend wells if oil is found for future operations (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)

Main Hole - 2200m for Jupiter - ~1500m for others - No casing (open hole flow test) - UB with N2/Water - WBM Density of ~800 kg/m3

Hybrid / Coiled Tubing Drilling Unit

Old Harry
A Giant Prospect Tom Martel
Chief Geologist

250,000 Acres

Corridor Resources Inc.

Bradelle L-49


Brion Island #1

Corridor Resources Inc.

Corridor Resources Inc.

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