Prince Edward Island

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.

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.

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