By OGJ editors
HOUSTON, July 30 -- Corridor Resources Inc., Halifax, NS, and PetroWorth Resources Inc., Calgary, revised an agreement regarding gas exploration and licensing on Prince Edward Island off eastern Canada.
PetroWorth will finance 100% of the cost to frac and test the first two zones in the Green Gables-3 well in early August to a maximum $2 million to earn 10% working interest in Corridor's Green Gables license 04-03. Flow test results are to be available by the end of August.
The well, which Corridor drilled to 2,545 m in late 2007, found more than 70 m of indicated net gas-bearing sand mainly in the Carboniferous Bradelle formation using a 6% porosity cutoff. Corridor estimated that the 11,000-acre structure contains 1 tcf of gas at a 6% porosity cutoff.
Corridor has the option until Sept. 5 to elect to drill two exploration wells at its sole cost by July 31, 2009, to earn a 50% working interest in any of PetroWorth's five PEI licenses.
The companies agreed that each has the right to back into a 50% working interest on any license acquired by the other on PEI in the next 5 years.