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Message: Updates on Operations at Pincher Creek, Alberta and Highpoint, Tennessee
| February 12, 2009 |
| Montello Provides Updates on Operations at Pincher Creek, Alberta and Highpoint, Tennessee |
| CALGARY, ALBERTA--(Marketwire - Feb. 12, 2009) - Montello Resources Ltd. (TSX VENTURE:MEO) ("Montello") wishes to announce the recent results of operations at Pincher Creek, Alberta, Canada and those undertaken at Highpoint, Tennessee, USA by wholly owned United States subsidiary, Montello Resources U.S.A. Ltd. At Pincher Creek preliminary approval was received on January 29, 2009 from the Energy Resources Conservation Board (ERCB) to proceed with the construction of a 258 meter long sweet gas pipeline after land owners lifted their objections. It will connect the 100/01-11-29W4M well to the pipeline system feeding Shell Oil's Waterton gas plant. On test, this well has produced light oil and solution gas from both the Brown Sand and Cadomin formations. A comingling application will be made to the ERCB to allow the two formations to be produced simultaneously. Montello has a 25.00% interest in the 01-11 well prior to payout and 15.00% after payout. It is anticipated that production from the well can commence before the end of the 2nd Quarter of Calender 2009. In Tennessee, testing of the gas reservoir interval from 2,523 to 2,528 meters in the John Bowen #2 Test Well, was carried out between November 18 and December 4. It was perforated, fracced with nitrogen, acidized and swabbed for three days. The well was subsequently shut in for seven weeks and continually monitored for pressure buildup. The flowback and subsequent monitoring of the well has indicated that the gas zone tested is not commercial. The gas zone will be abandoned and Montello will meet with the other participants to review existing plans for further development on the prospective zones in the five wells that the group has drilled in the area in particular, the Chattanooga Shale. About the Chattanooga Shale: Drilling of the Chattanooga Shale is still relatively new with such companies as Atlas Energy (ATN), CNX Gas Company (CNX), Chesapeake Energy (CHK), Range Resources (RRC), GeoMet Inc. (GMET), actively pursuing mineral rights (drilling rights). The Chattanooga Shale is an organic, hydrocarbon rich shale found throughout Eastern Tennessee. It is an extension of the Appalachian Basin Devonian Shale, which is known to most as the Marcellus Shale and is believed to hold rich areas of natural gas. It is located in Eastern Tennessee, Northern Alabama, Southern Kentucky and Northeast Georgia. It is thought to be a source rock for the hydro-carbons produced from many of the conventional reservoirs in Tennessee. The shale thickness can vary to in excess of 200 feet. (The following links on the Chattanooga Shale are the source for the overview above. They are independent 3rd party sources, which are believed to be reliable, but cannot be guaranteed for completeness or accuracy). http://oilshalegas.com/chattanoogash... http://www.rigzone.com/NEWS/article.... http://www.scandoil.com/moxie-bm2/ne... Certain holders of 14,200,000 incentive stock options including all management and board members, have agreed to the cancellation of their options ranging in price anywhere from 10 cents to 21 cents per share. That leaves approximately 1,275,000 options presently remaining issued. ON BEHALF OF THE BOARD OF DIRECTORS Peter C .Brown, President-CEO |
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