Montello Updates Pincher Creek Activity
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"Montello Updates Pincher Creek Activity; Grants Incentive Stock Options
Calgary, Alberta, October 30th, 2007 Montello Resources Ltd. ("Montello") TSX Venture Exchange In Canada Symbol "MEO") received an activity update from operator Pennine Petroleum Corp., on the new discovery at Pennine Pinch CK 100/01-11-004-29W4M. Their engineering team is currently evaluating various down-hole production schemes to place the Cadomin formation onto production, including the handling of associated natural gas. This includes the selection of condensate lift systems and gas tie-in points. The current plan is to initially produce the Cadomin formation hydrocarbons so as to establish optimal production rates. Examination of data collected during the Brown Sand completion shall be investigated with a view to possibly commingling both zones in the future. Initiation of continuous production is anticipated in November, 2007.
Earlier in October, Pennine applied to the Alberta Energy and Utilities Board (EUB) for a licence to drill the Pennine Pinch CK 6-12-4-29 W4M well which will test the Rundle formation to a total depth of 3,880 metres. In addition this well will also penetrate the continuation of the recent condensate discoveries at the Pennine Pinch CK 1-11-4-29W4M recompletion project. Geological data indicates that this well may encounter the same pools as tested in the discovery well, in a structurally up dip position. This proposed well is also a structurally up dip offset of the 3-11-4-29W4 well that was drilled by Gulf Canada and produced significant gas since the 1970s. The operator believes that the risk factors previously attributed to this well have been potentially further reduced due to the recent 1-11 discovery in the neighbouring section and that what was once a tentative producing zone in the upper section has become a secondary target.
Montello has an option that can be exercised within 45 days of notification, to participate as to a minimum of 25% Pennine's interest in the drilling, completion or abandonment of the proposed deep Rundle Test Well to be drilled at the location of 6-12-4-29W4M4. Pennine again will be the Operator of the Rundle Prospect. There is Rundle production within two miles of the prospective location. The Rundle zone is expected to be encountered at a depth of 3,880 metres. Given full 3D Seismic, it is believed that there is an untested imbricate thrust fault that lies out in front of the northern part of the main producing Rundle Formation imbricate. Since this project is in an active gas producing area, the predominant risk is the possibility of the well not encountering a reservoir of sufficient quality to yield the expected rates and drainage area as predicted, or that the target sheet is not isolated from the producing reservoir. These lands are approx. 175 kilometres south of the City of Calgary, and consist of both Crown leases and Freehold leases representing 10,560 gross acres (approx. 4,851.2 net acres to Pennine).
Montello also announces that it has granted 9,900,000 incentive stock options to officers, directors, consultants at an exercise price of $0.205 per share. The options are exercisable until October 29th, 2012, and are subject to a four-month hold period and subject to regulatory approval.
About Montello Resources Ltd."
Calgary, Alberta, October 30th, 2007 Montello Resources Ltd. ("Montello") TSX Venture Exchange In Canada Symbol "MEO") received an activity update from operator Pennine Petroleum Corp., on the new discovery at Pennine Pinch CK 100/01-11-004-29W4M. Their engineering team is currently evaluating various down-hole production schemes to place the Cadomin formation onto production, including the handling of associated natural gas. This includes the selection of condensate lift systems and gas tie-in points. The current plan is to initially produce the Cadomin formation hydrocarbons so as to establish optimal production rates. Examination of data collected during the Brown Sand completion shall be investigated with a view to possibly commingling both zones in the future. Initiation of continuous production is anticipated in November, 2007.
Earlier in October, Pennine applied to the Alberta Energy and Utilities Board (EUB) for a licence to drill the Pennine Pinch CK 6-12-4-29 W4M well which will test the Rundle formation to a total depth of 3,880 metres. In addition this well will also penetrate the continuation of the recent condensate discoveries at the Pennine Pinch CK 1-11-4-29W4M recompletion project. Geological data indicates that this well may encounter the same pools as tested in the discovery well, in a structurally up dip position. This proposed well is also a structurally up dip offset of the 3-11-4-29W4 well that was drilled by Gulf Canada and produced significant gas since the 1970s. The operator believes that the risk factors previously attributed to this well have been potentially further reduced due to the recent 1-11 discovery in the neighbouring section and that what was once a tentative producing zone in the upper section has become a secondary target.
Montello has an option that can be exercised within 45 days of notification, to participate as to a minimum of 25% Pennine's interest in the drilling, completion or abandonment of the proposed deep Rundle Test Well to be drilled at the location of 6-12-4-29W4M4. Pennine again will be the Operator of the Rundle Prospect. There is Rundle production within two miles of the prospective location. The Rundle zone is expected to be encountered at a depth of 3,880 metres. Given full 3D Seismic, it is believed that there is an untested imbricate thrust fault that lies out in front of the northern part of the main producing Rundle Formation imbricate. Since this project is in an active gas producing area, the predominant risk is the possibility of the well not encountering a reservoir of sufficient quality to yield the expected rates and drainage area as predicted, or that the target sheet is not isolated from the producing reservoir. These lands are approx. 175 kilometres south of the City of Calgary, and consist of both Crown leases and Freehold leases representing 10,560 gross acres (approx. 4,851.2 net acres to Pennine).
Montello also announces that it has granted 9,900,000 incentive stock options to officers, directors, consultants at an exercise price of $0.205 per share. The options are exercisable until October 29th, 2012, and are subject to a four-month hold period and subject to regulatory approval.
About Montello Resources Ltd."
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