Montello Resources Ltd. (TSX.V: MEO) is pleased to announce the following update on our program at Pincher Creek, southern Alberta.
The operator Pennine Petroleum Corporation (TSX.V: PNN), has performed two 60 tonne fracture stimulations on the Brown Sand and the Cadomin/Kootenay section in the 1-11-4-29W4 well location. These stimulations resulted in the discovery of two condensate zones with associated gas. The condensate is currently testing in a range of 40 degrees to 46 degrees API but is subject to final evaluation.
Production tubing is currently being run into the 1-11 well with the intention of production testing these zones to industry standards. Following successful testing and completing product evaluation, the combined condensate and gas rates from these two zones will be announced. The joint venture partners plan is to evaluate and produce from this well preferably by commingling both zones. The development strategy for a successful well is to separate the condensate, and truck it to a local facility and to produce any associated gas into the existing facilities close by the well-bore.
A successful discovery constitutes a new "play" for the partnership amongst nearly 10,000 acres of geologically prospective lands. The intent is to then continue with a program of further recompletions and drilling through 2008. The concept for this uphole zone play is simply to follow sand development across the Pincher Creek structure and access these hydrocarbon-bearing sands via existing well-bores. It is felt that little attention was paid to the overlying Cretaceous and Jurassic sections that were effectively by-passed through en route to the main target at Pincher Creek which has been the Mississippian carbonates further below.
Pennine Petroleum Corp. WI 37.5% Operator, with Montello 25%, Paramount Resources 25%, and a Private Company 12.5% are the joint venture partners. Montello shall have the right of option, to be exercised within 45 days of notification, to participate as to a minimum of 25% of Pennine's interest in the drilling, completion, or abandonment of any proposed contingent wells on these land holdings.
About the Pincher Creek Field
The Pincher Creek Field has been one of the most prolific fields in Alberta. It is a structurally-controlled, over-thrusted imbricate stack that has been producing since 1947 and to date has produced some 600 BCF of gas and 1 million + BBLs of associated liquids from the Mississippian-age carbonates of the Turner Valley (Rundle) formation. It is believed that an estimated 225 BCF of gas remains to be produced from the Mississippian formations in the productive plates that have been accessed thus far, although present production from Pincher Creek is 2 MMCFD. Palaeozoic carbonates have been prolific targets in the region with the Waterton, Turner Valley, Coleman, Savanna, Lookout Butte, Jumping Pound, etc., fields having produced many TCF of gas and hundreds of millions of barrels of associated liquids.
About Montello Resources Ltd.
Montello Resources Ltd. (TSX-V: MEO), www.montello.com, is an emerging, publicly traded company listed on the TSX Venture Exchange, is engaged in high impact oil and gas exploration "hunting for elephant(s)" in the Tennessee Appalachians at its Morgan Highpoint Project located in a part of the State of Tennessee where only a limited number of deep tests have been drilled. Nabors Drilling USA, Strata Energy Services of Red Deer, Alberta and Pason Systems Inc. of Calgary are the current key drilling and service contractors.
ON BEHALF OF THE BOARD OF DIRECTORS
"William R. Cawker"
William R. (Bill) Cawker
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Reader Advisory: This news release contains certain forward-looking statements, including management's operations and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Corporation's control. The Corporation's actual results, performance or achievements could differ materially from those expressed in, or implied. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. There can be no assurances that future developments affecting Montello will be those anticipated by management. Furthermore any forward-looking statements contained in this news release are made as at the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise them whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. We Seek Safe Harbor. "BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead."
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