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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 www.sedar.com. 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.
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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
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2000m
Evaluation is on-going
5
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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 observed at the wells has become a more conventional decline 2010 field activities are being targeted to increase and stabilize production
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
2009 operating costs 20% less than 2008 2009 injuries none for staff, 1 minor for contractors 2009 spills none in 2009
Project Schedule
McCully Operations
Inlet Compressor
Inlet Separator
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Basin-Wide Cross-Section
W
0 ApproximateDepth(km) 1 2 3 4
Sussex Group
McCully Field
Elgin Area
G-41
E
N-11
Hiram Brook E-G Sands Hiram Brook A-D Sands Upper Fredrick Brook Lower Fredrick Brook
5 km
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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
CONCLUSIONS
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
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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
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Larry Huskins
Drilling/Completions Team Lead
Location
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
Gas log
Zone of Interest
500 m
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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Jupiter
Summary
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
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Larry Huskins
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Objectives
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 )
Schedule
2010 April May June July August September October
PlanningWork
MobilieEquipmenttoDock SailEquipmenttoIsland
ReEnterJupiter
Suspend&MoveoffIsland
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
Main Hole - 2200m for Jupiter - ~1500m for others - No casing (open hole flow test) - UB with N2/Water - WBM Density of ~800 kg/m3
Old Harry
A Giant Prospect Tom Martel
Chief Geologist
250,000 Acres
Bradelle L-49
OH
Brion Island #1
Summary
Old Harry is a giant structure that could be the flagship for a new basin opportunity
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