CALGARY, ALBERTA--(Marketwire - Dec. 4, 2007) - Montello Resources Ltd. ("Montello") (TSX VENTURE:MEO) is pleased to announce that the Company is farming in on two low-risk gas exploration wells in the Grouard region of Alberta, approximately 550 km northwest of the city of Edmonton.
Drilling has already commenced on the first of these two drill holes to the Debolt formation at an estimated total depth of 850 metres. These two gas wells represent multi-zone targets. Drilling is expected to be completed on both wells as early as December 7, 2007. Montello's estimated costs per well are approximately $155,000.
Pursuant to the farm-in agreement that Montelllo entered into with Northern Sun Exploration Company Inc. in late November, 2007, the Company is earning a 35% working interest subject to minor overrides in each well in return for paying 50% of the drilling costs.
Northern Sun Exploration is the operator of these wells and already operates production in the area. In the event of a successful outcome, it is anticipated that gas production will be tied-in to a nearby pipeline. Further to the farm-in agreement with Northern Sun, Montello also has the right to participate in other contingent offset wells in the area.
Pursuit of lower risk drilling opportunities for gas and condensates in Alberta are in line with the Company's business plan to generate revenues in the short term to assist with financing of high impact drilling in Tennessee. The Company is contemplating additional flow through eligible opportunities before year end as this fulfills its 2006 flow-through obligations.
About Montello Resources Ltd.
Montello Resources Ltd. (TSX VENTURE:MEO), www.montello.com, is an emerging, publicly traded company listed on the TSX Venture Exchange in Canada. Montello is engaged in sourcing and drilling high impact oil and gas exploration wells "hunting for elephants" in both the Tennessee Appalachians as well as in Canada.
Montello is also active in the Pincher Creek area in Alberta where Montello recently participated as to a 25% interest in a successful recompletion of the Brown Sand and the Cadomin/Kootenay sections in the 1-11-4-29W4 well location.
The Pincher Creek Field has been one of the most prolific fields in Alberta having produced some 600 BCF of gas and over one million barrels of associated liquids.
ON BEHALF OF THE BOARD OF DIRECTORS
William R. (Bill) Cawker, President-CEO
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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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