Montello Resources Ltd. ("Montello") is pleased to announce that it has been successful in obtaining a strategic 230 acre oil and gas lease in Fentresse County, Tennessee. The lease is located approximately one mile away from, and on trend with, the Elmer Howard White Unit #1 ("Howard #1"). The Howard # 1 well, drilled by Pryor Oil Company, Inc. in July, had a flow rate calculated at 12,000 barrels of oil in the first 24 hours. Drillers encountered pressures, 1500 to 1800 psi, at 2,500 feet, which they would not normally expect at less than 10,000 feet. Subsequently a blowout occurred. Due to the blowout the Environmental Protection Agency, EPA, took over control of the well. The well caught fire and was extinguished by Boots and Coots of Houston Texas. The Environmental Protection Agency has not released the well back to Pryor Oil Company for completion at this time. The Montello lease is bordered by Clear Creek and the Catoosa Wildlife Management area on the South.

With the acquisition of this new property complete, Montello is finalizing arrangements for the completion, acid wash/frac, on its Reynolds #1 well in Rogersville, Tennessee.

not sure the fentresse lease is the same as the Thompson lease....but clearly MEO has this lease 1 mile away...still searching