Good thing Montello Mgmt decided to drag things out so long, its given me lots of time to get more research done.

For over a year, “Bill” on various boards has said that Tenn properties don’t have to be included in the NI 51-101 Reserves Reporting Standard, because they didn’t flow the wells for 90 days.According to my research that’s a lie.

Therefore, I would strongly suggest that all investors do their own research to ensure that what you take to be facts are actually that.

Having recently started researching Canada’s National Instrument 51-101 Standards of Disclosure For Oil and Gas Activities, I can tell you some of what I have found.

Reserves are to be done in accordance with the Canadian Oil and Gas Evaluations Handbook (COGEH).Details are in this handbook, as well as the NI 51-101 documents.There are a number related documents, like the NI 51-101F1 Statement of Reserves Data and Other Oil and Gas Information, which you can see on Sedar is what Montello filed November 21, 2008 for the period ending July 31, 2008.(You remember, the year all that money was spent drilling 4 wells.)

To start with, all reserves statements are estimates.The only way we know the actual quantity is to produce everything in the well, but by then we no longer have a reserve, we have production (past tense) and the resulting revenues.

There are a number of ways to do those calculation, and engineers are trained to know which is the best method for the situation.I’m not an engineer and am assuming you’re not either, so I’ll keep it simple.

First, we have Proven Reserves – for this we’ll assume we have lots of wells, and a very clear idea of what is down there.But, we have to calculate what can be recovered, and recovered economically, with current technology, etc..(all those details eh?)

Next we have Probable Reserves – less certainty of the amount down there.

Lastly we have Possible Reserves – even less certainty of what’s down there.

Beyond that are Risk Factors, Economic Status, Development and Production Status, Uncertainty Categories – you get my point that this is rather involved, and too much to detail here.That's why you need to look it all up yourself.

The Canadian Institute of Chartered Accountants (CICA) states that “Investors need to receive information that is helpful in determining whether they should invest or continue to invest in an entity.” And “If a reasonable investor’s decision whether or not to buy, or sell or hold securities of the reporting issuer would be influenced by the information were or omitted or misstated, then the information is likely material.”Accountants are warned to be careful, so the company doesn’t get sued.

The Canadian Journal of Petroleum Technology states that, “Should any personnel of a public issuer, who is aware of reserves not reported to the public by means of a disclosure or press release, trade in the securities of that company they could be charged with insider trading.”Does this includes stock options and private placements?