Globe says N.B. gas to begin moving through Corridor
2007-06-26 08:40 ET - In the News
The Globe and Mail reports in its Tuesday, June 26, edition that Corridor Resources will begin to pump natural gas into the lucrative New England market on Wednesday.
Peter Moreira writes in The Globe that the flow of 35 million cubic feet a day from the McCully field in New Brunswick will be the first export of gas from an onshore site in Atlantic Canada to New England. The firm still has to determine is just how much natural gas it can extract from the McCully field in the southern part of the province. The initial flow will come from the Hiram Brook formation in the field, which could eventually produce 45 million cubic feet a day. Independent assessments show McCully has about 1.2 billion cubic feet of proven, probable and possible reserves. Corridor is also drilling on two more sites in the McCully field, Fredericks Brook and Dawson Settlement. Dawson and Fredericks will determine the future of Corridor's shares, whose value has doubled since January. The company is undertaking exploratory drilling at Dawson, but Gregory Chornoboy, an analyst with Jennings Capital and co-lead manager on the recent $60-million stock sale, thinks the bulk of the upside potential is in Fredericks.
AI
