Hiram Brook Formation: New Oil Discovery - New Brunswick

There was a new oil discovery in Canada announced this past week located in southern New Brunswick. Which oil prices falling 5% per day, the buzz isn't as great as it once was. Back in July, if positive reports would have come out on the Bakken Shale located in Canada, North Dakota, and Montana, it would have been all over the news.

Corridor Resources Inc. (CDH – TSX) reported December 3rd that it made a potentially significant oil discovery at its South Branch G-36 well situated 3 kilometers southeast of the McCully natural gas field in southern New Brunswick. The G-36 well penetrated a thick sequence of Hiram Brook sands containing indeterminate fluid content based on well logs prior to being drilled to a total depth of 2642 meters, nearly 500 meters into the underlying Frederick Brook shale. The well has been cased and two frac stimulation treatments have been carried out over two intervals within the Hiram Brook formation. The first frac, conducted over 10 meters of potentially gas bearing sands within the depth interval 1757 - 1840.5 meters in the lower Hiram Brook formation, yielded a show of oil and no measurable amounts of gas and is considered to be tight. The second frac was conducted in a 38 meter thick sand within the depth interval 1574 – 1612 meters in the upper Hiram Brook formation. The frac placed 30 tonnes of proppant prior to being prematurely concluded due to a frozen water line which may have reduced the effectiveness of the frac. Following 10 days of flow-back and clean-up of frac fluids, the well was flowing clean, 45° API oil and no water at a measured rate of 59 barrels of oil per day through production tubing. The well is currently shut in awaiting installation of a pump to reduce down-hole pressure and increase the rate of production prior to undertaking long-term testing later in December to evaluate the economic potential of the well. An additional 31 meters of potential oil pay (previously reported as potential gas pay) in the upper Hiram Brook formation have not as yet been completed in this well.

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Marcellus Shale: Rex Energy Provides Update

Rex Energy Corporation (REXX) provided an operational update today on its Marcellus Shale activities and 2009 capital budget.

The company is pleased to announce initial flow rates for its first two vertical test Marcellus Shale wells completed in Westmoreland County, Pennsylvania. These wells, drilled in the deeper portion of the Marcellus play, had peak flow rates of 400 and 1,200 Mcf per day respectively before being turned into sales. Each well continues to stabilize at daily production rates of 300 - 500 Mcf per day, and the high operating pressures suggest increased production is likely with further production facility optimization. The company's third vertical test well in Westmoreland County has been drilled and will be completed by mid-December.

In Clearfield County, Pennsylvania the company has recently completed drilling its first vertical test well encountering approximately 150 feet of Marcellus Shale formation. The company expects to complete the well in late December. Additionally, in Butler County, Pennsylvania area, the company participated in the drilling of two additional vertical wells with its partner. Both wells are expected to be completed during the first quarter of 2009 following installation of the company's gas processing facility.

http://ir.rexenergycorp.com/phoenix.zhtml?c=211917&p=NewsArticle&id=1232069