SPECIAL POINT OF INTEREST: Corridor News V O L U M E 8 , I S S U E 3 O C T O B E R 3 1 , 2 0 1 4 Scholarships Awarded (see page 2) Penobsquis Family Fun Day (see page 3) Corridor News is available on Corridor’s website www.corridor.ca/aboutus/corporate-responsibilitycommunityengagement.html#corridornews (see page 5) INSIDE THIS ISSUE: Management 1 Scholarships Awarded 2 Penobsquis Family Fun Day 3 Sponsorship 4 Production Operations 4 Seismic Update 4 Drilling and Completions 5 Safety and Environment 6 Update Corridor News Available on Website 7 For More Information About Natural Gas 7 Upcoming Activities 7 Call Before You Dig 8 Corridor’s Safety Slogan “At work, rest and play: safety first every day.” On August 29, 2014, Doug Foster, Chair of Corridor Resources Board of Directors, introduced Steve Moran (left) to Corridor employees as the new President and CEO, taking over from Phil Knoll (right), who joined Corridor in the Fall of 2010. Steve has Maritime connections as he grew up in Dartmouth and graduated with a BBA from Acadia University. Steve comes to Corridor with more than 30 years' experience with oil and gas companies, for example, Bellamount Exploration Ltd. increased its value in double digits in cash flow, production and reserves under his leadership. Corridor looks to be in good hands. Welcome aboard, Steve. Phil Knoll hands over Corridor Resources to Steve to continue the development of Frederick Brook Shale, Anticosti Island and Old Harry. Phil may be retired from Corridor as an employee, but he will continue to provide strategic advice on the Board. We thank him for his leadership and his hard work on our behalf. We wish to congratulate Doug Bailey as he begins his retirement after 43 years in the oil and gas industry. He has been an integral part of Corridor. Doug’s contributions to the company will be valued and remembered. His dedication, commitment and knowledge are worthy of admiration. Doug we wish you all the best! VOLUME 8, ISSUE 3 OCTOBER 31, 2014 PAGE Devin Keith Sussex Regional High School NBCC Saint John Jacob Freeze Sussex Regional High School Crandall University Natalie Wallace Sussex Regional High School Dalhousie University Truro Amber Killam Petitcodiac Regional School NBCC Moncton Corridor Scholarships Awarded Brady Ollivier Sussex Regional High School UNB Fredericton Cecilia Keith Sussex Regional High School St. Francis Xavier CORRIDOR NEWS Brodi Plaggenborg Sussex Regional High School NBCC Miramichi Carolyn Burgess Petitcodiac Regional School Mount Allison University 2 VOLUME 8, ISSUE 3 OCTOBER 31, 2014 PAGE 3 8th Annual Penobsquis Family Fun Day Submission from the Organizing Committee What a great day for the community of Penobsquis. It was wonderful to see neighbors, friends and family come and enjoy this day. Morning till night, there was something for everyone. Special thanks to everyone involved in making the day a success. Whether you were a business and donated money or prizes, in on the planning stages or worked at the event that day, your help was very much appreciated. On behalf of the community – THANK YOU! Parade theme was “ELECTRIC 80’s” Shawn McLean was very happy to win the $100 VISA card. Ball Hockey Youth Competitive Winners "Cheetos” .Teammates Owen Dunfield, Anthony McLean, Keaton Deveau, Ian Moffett, Sam Smith and Gage McLeod. Presented by Ed Murray, Chairman PFFD. Canadian Tire Bicycle winners this year were Owen Dunfield, Savannah Tomilson and Jacob Steeves. CORRIDOR NEWS Ball Hockey Adult Competitive winners “Grave-Seekers” VOLUME 8, ISSUE 3 OCTOBER 31, 2014 PAGE 4 Fracture stimulation and completion operations in the McCully and Elgin areas are nearing completion. Over the course of the 2014 Work Program the following stimulation treatments were performed: B-41 well at Elgin G-41 Well Pad – 3 treatments August 4, 5, and 14 L-37 well at McCully D-58 Well Pad – 2 treatments August 17 and 23 P-67 well at McCully N-57 Well Pad – 1 treatment August 20 J-76 well at McCully O-76 Well Pad – 2 treatments August 30 and September 9 E-67BCorridor well at McCully F-67 Pad – 1 requests treatmentfrom September 4 and the surrounding areas since the received 30 Well sponsorship Penobsquis last completions newsletter. Sponsorship fundingare wasinawarded theall following organizations: Sussex & District Flow testing, and tie-in activities progresstowith work expected to be complete in November. Chamber of Commerce, Rotary Club of Sussex, Greater Fundy Ground Search & Rescue AssociaOther ongoing work over and maintenance activities include some of the other wells in the McCully field. This work is tion, Penobsquis Atlantic International Balloon Fiesta,toDairy Air in Runners taking place while the coiledFamily tubingFun andDay, snubbing equipment that was mobilized the area supportOlivia’s of the fracture stimulation5Kprogram is still on location. of the work has beenHigh completed the remainder to School, be completed by for IWK, Sussex Middle Most School, Sussex Regional School, with Petitcodiac Regional Mid-November. Havelock Elementary, Havelock Lions Club, Sussex Committee for Prevention of Family Violence, Sponsorship SPOT, Golden Years Fellowship, Elgin Seniors, Elgin Fire Department, Kings County Soil and Crop All of the work in the 2014 Work Program was conducted under Approvals granted by the New Brunswick Regulators Improvements, Sussex Hockey, Ducks Unlimited, Town of Sussex Ice Sponsorship, and in strict compliance with the Minor New Brunswick Department of Environment and Local GovernmentPenobdocument squis Community Enrichment Committee, Crosswinds Activity Centre, Kiwanis Club, Kenn for Valley “Responsible Environmental Management of Oil and Natural Gas Activities in New Brunswick – Rules Industry” and Kings Fundy Nationals Midget AAA,Exploration, Sonics Hockey, Dairytownand Classic and Kidstuff the draft Oil andBantam NaturalAAA, Gas Operating Standards for Well Development Production. Theatre. Finally, Corridor would like to express its thanks and appreciation to the local community for all of the patience and understanding that permitted us to undertake the work program this season. Requests are still under review from the following organizations: Sussex Vale Transition House and Danny & Jessica Foundation. Production Operations Update The McCully Field Production Operations are steady and running as normal. Field personnel are continually assessing and implementing process improvements to optimize flow and operation of the Gas Plant. With the 2014 Work over Campaign winding down, the focus has turned to installing facilities to flow the wells. Construction has begun to tie-in three wells (the E-67B well on the F-67 Well Pad; the J-76 well on the O-76 Well Pad; and the L-37 well on the D-48 Well Pad) that are currently not connected to the McCully gathering system. The tie-in activities are expected to be completed by late November or early December 2014. Seismic Activity Update There have been no seismic activities since the last newsletter. There are no seismic plans in Q4. CORRIDOR NEWS VOLUME 8, ISSUE 3 OCTOBER 31, 2014 PAGE Drilling and Completions Update Drilling Upon successfully obtaining approvals for the phased Environmental Impact Assessments (EIAs) for the 2014 scope of work in McCully and Elgin, Corridor commenced its 2014 Work Program by expanding and upgrading the F-67 Well Pad off the Back Road in Penobsquis. The Precision 641 service rig was brought in to the E-67B well to clean out the existing well bore and to run and cement production casing to prepare the well for fracture stimulation and completion activities. The rig then moved to the O-76 Well Pad for work on the J-76 well. The rig performed a cement bond log of the existing casing and perforated the desired intervals. Production casing was run to surface with a balldrop completion system to enable two fracture stimulations to be completed. The rig was then demobilized back to Alberta. Completions Fracture stimulation and completion operations in the McCully and Elgin areas are nearing completion. During the 2014 Work Program the following fracture stimulation treatments were performed between August 4, 2014 and September 9, 2014: B-41 well at Elgin G-41 Well Pad L-37 well at McCully D-58 Well Pad P-67 well at McCully N-57 Well Pad J-76 well at McCully O-76 Well Pad E-67B well at McCully F-67 Well Pad Completions and tie-in activities are in progress with all work expected to be complete in late November or early December. Other ongoing work over and maintenance activities included some of the other wells in the McCully field. This work took place while the coiled tubing and snubbing equipment, which was mobilized in support of the fracture stimulation program, was still in the area. All of the work in the 2014 Work Program was conducted under Approvals granted by the New Brunswick Regulators and in strict compliance with the New Brunswick Department of Environment and Local Government document “Responsible Environmental Management of Oil and Natural Gas Activities in New Brunswick – Rules for Industry” and the draft Oil and Natural Gas Operating Standards for Well Exploration, Development and Production. Finally, Corridor would like to express thanks and appreciation to the local community for all of the patience and understanding that permitted us to undertake the work program this season. CORRIDOR NEWS 5 VOLUME 8, ISSUE 3 OCTOBER 31, 2014 PAGE Safety and Environment Update Since the April 2014 Newsletter, the Corridor HSE Department has been engaged in a variety of activities to support ongoing drilling, completions and production operations. The HSE team submitted its new and updated plans to the Regulator and these were approved for the 2014 work program in McCully and Elgin. Corridor added a field HSE Coordinator based in Penobsquis during the 2014 work program. This individual also provided support to the Production Operations Group and the facilities at the McCully Gas Plant. Despite the best efforts of everyone involved in our operations, several incidents have been reported since the April 2014 Newsletter and during the 2014 Work Program. Nine minor spills or accidental releases were promptly reported to the NB Department of Environment and Local Government. These incidents were immediately contained and cleaned up. There have been five complaints or requests for information from land owners, two near misses, and two security incidents. Three incidents of minor equipment damage were reported. All of the above incidents were recorded and investigated and corrective actions implemented. Special thanks to the Elgin Fire Department for providing the 24-security coverage to our Elgin program for the past three months. CORRIDOR NEWS 6 VOLUME 8, ISSUE 3 OCTOBER 31, 2014 PAGE 7 Since the April 2014 Newsletter, the Corridor HSE Department has been engaged in a variety of activities to support ongoing drilling, completions and production operations. The HSE team has submitted its new and updated plans to the Regulator and has had these approved for the 2014 work program in McCully and Elin. Corridor added a field HSE Coordinator to be based in Penobsquis for the duration of the 2014 work program. This individual also provided support to the Production Operations Group and the facilities at the McCully Gas Plant. Despite the best efforts of everyone involved in our operations, several incidents have been reported since the April 2014 Newsletter and during the 2014 Work Program. Nine minor spills or accidental releases were promptly reported to the NB Department of Environment and Local Government. These incidents were immediately contained and cleaned Brent DeBow, Junior Facilities Engineer, up. There have been seven complaints or requests for information from preparing land owners, one near miss, and one safety documentation whileunauthorized entry onto one of our worksites. Three incidents of minor equipment damage reported.site. All of the above inciworking onwere a completions dents were recorded and investigated and corrective actions implemented. Corridor News Available on Website Corridor Resources has been, and will continue, posting copies of its newsletter on the Corridor Website at: www.corridor.ca/about-us/corporate-responsibility-community-engagement.html#corridornews. Anyone interested in reading Corridor’s newsletter can access it online. If you do not have access to a computer or would prefer to continue receiving a hard copy, please contact Nancy Secord at (506) 433-3066. For More Information About Natural Gas There has been a lot of discussion in New Brunswick about oil and natural gas exploration and production. For more information, the following websites can be consulted: Canadian Society for Unconventional Resources - www.csur.ca Gas Association - www.cga.ca Canadian Association of Petroleum Producers (CAPP) - www.capp.ca American Natural Gas Association - www.anga.us Upcoming Activities The next newsletter will be published on December 31, 2014. Due to the limited field activities, other than normal Production Operations, the McCully Joint Health and Safety Committee meetings will be deferred until such time that field activity increases. CORRIDOR NEWS VOLUME 8, ISSUE 3 OCTOBER Call Before You Dig Please provide two business days in 31, Corridor’s "Call-Before-You-Dig" program provides guidance to landowners and other third parties on actions to be taken before undertaking any ground disturbances within 30 metres of the transmission pipeline Right of Way (RoW) and within 20 metres of the gathering system pipeline RoW. The "Call-Before-You-Dig" line, 1-800-880-5705, is operated on a 24 hour/7 days a week basis and calls to the number are answered by one of the answering service personnel. This person will provide information about the location of Corridor’s pipelines. The information and excavation request will be forwarded to a Corridor representative, who will follow up with the caller to discuss the ground disturbance and inspect the location of the proposed ground disturbance. Corridor will notify the landowner of any special requirements for working in the area near the pipeline. Written permission from Corridor is required prior to any ground disturbance. Corridor has posted signs along the pipeline route with the "CallBefore-You-Dig" information and phone number. Did You Know? to get a message to our on-call personnel. Corridor is an Eastern Canadian junior resource company engaged in the exploration for and development and production of petroleum and natural gas onshore in New Brunswick and Québec and offshore in the Gulf of St. Lawrence. Corridor currently has natural gas production and reserves in the McCully Field near Sussex, New Brunswick and crude oil reserves in the Caledonia Field near Sussex, New Brunswick. In addition, Corridor has contingent resources and discovered unrecoverable resources in Elgin, New Brunswick and has a 21.67% interest in a joint venture which has undiscovered resources on Anticosti Island, Québec. Corridor Resources Inc. #301, Cornwallis House 5475 Spring Garden Road Halifax, Nova Scotia B3J 3T2 Phone: 1-888-429-4511 Fax: 902-429-0209 We want to hear from you! Please send any suggestions or comments to: Corridor Mission Statement Dena Murphy Health, Safety, Environment & Regulatory Affairs Manager Phone: 1-888-429-4511 E-mail: HSE@corridor.ca 8 The New Brunswick Pipeline Act, 2005, requires anyone proposing to undertake ground disturbance near a pipeline to determine the location of the buried pipeline and to advise the pipeline operator before any ground disturbance. proposed ground disturbance 1-800-880-5705 PAGE advance of the If you have any questions or concerns after our normal working hours you can call 2014 Corridor Resources is focused on the exploration and development of oil and gas in eastern Canada. Corridor is dedicated to safe work practices, environmentally responsible operations and the highest level of business integrity. With a strong leadership team supported by devoted employees and contractors, Corridor aims to create shareholder value by expanding its reserves and production while fostering successful partnerships in the communities in which we live and work. www.corridor.ca