Fish, you demanded to know why I felt justified posting that JB#1 was capable of producing 1,000 to 2,000 bbls per day, minimum, and you accused me of being just a pumper. Here’s my research and basis for my conclusion. Pumpers don’t put in such effort.

Please note my extensive use of references, and compare this with the personal attacks and vague impression of giving details that Badabing uses. We’ll let the users of this board decide who has the most credible contributions to the discussion.

MEO NR June 19, 2006 “The Company has completed our site preparation, the running and cementing of production casing in order to commence the re-completion of the Texa Flora #1 well in Eastern Tennessee. This well was originally open hole completed and flowed at an initial rate of 800 BOE’s per day for 3 days in November 2003 before being shut-in. It is now ready for completion.

The Company has applied for an application to perforate and frac the well.”

Same NR “Ironically, Montello has found that it’s Peace Rive Arch Charlie Lake Oil Formations seem to be similar in characteristics to the Tennessee Oil Formations that the Company has studied to date.” The outcome that more than twice as much oil was produced in each of the wells stimulated in the same way they stimulated the JB#1 well. These are the lands purchased by MEO when Dwayne Tyrkalos’ company, Moonshine Resources was acquired in 2005.

MEO NR June 21, 2006 MEO and Austin sign an agreement that Austin will pay 100% of the costs for a 50% interest in the lands. “The program is to re-enter this open hole completed well, run in an cement production casing, selectively perforate and stimulate the productive zone/zones and then test the well”

MEO NR October 10, 2006 MEO “is pleased to announce that is has signed a mineral lease on a 253 acre property located in Morgan County, Tennessee. … intends to drill up to three wells. … The Joint Venture Partners plan to offset the Pryor wells with Austin financing 100% of all costs to acquire, drill, and equip to production stage up to three (3) wells initially estimated to cost U.S. $3 million dollars in order to earn 50% interest.”

MEO NR November 9th, 2006 In late June/early July we re-completed the TexFlora (John Bowen #1 Well) in the Sunnybrook/Nashville group formation. With this workover we accomplished a cased and re-perforation of the zone of interest, and acid wash and squeeze. The well responded with encouraging pressures and initial flow rates prompting the Company to acquire the Blowout lease project. The Texflora Well was subsequently shut-in and remains shut-in.”

MEO MD&A to October 31, 2006, released January 18, 2007 “At the end of June 2006, the Company focused on reworking the “Tex Flora Well” (officially known as the John Bowen #1). Upon re-completing and commencing evaluation for the economic potential, Management felt it prudent to immediately commence negotiations on the “Blowout Project Lands”. It was anticipated that negotiations would take two to three weeks but successful completion of this acquisition was not announced until October 10, 2006. “Tex Flora” was shut-in during the prolonged negotiation period and remains shut-in until after completion of the “Blowout Project” when it will be re-evaluated.

Austin Developments MD&A for the period ending November 30, ,2006, released January 29, 2007 With regards to JB#1 “The data gathered during the testing (i.e. flow rates, well pressure and oil composition) was evaluated by Austin and Montello to determine the most appropriate action to expedite this project.”

MEO MD&A for the period ending April 30 ,2007 and released June 28, 2007. “Montello is focused on drilling the Morgan Highpoint #1 well (aka John Bowen Unit #2) well and is negotiating for a rig capable of drilling down to a depth of 10,000 feet. The first objective is to drill a vertical sell to the “basement” in search of the same high pressure interval present in the original John Bowen Unit #1 well, which may be the same high pressure interval associated with the original Howard/White #1 well that blew out.”

Same NR “ The company’s goal is to conduct a multi well drilling program this summer onwards utilizing the latest in modern techniques on its Morgan County, Tennessee leases”

Summary

Montello’s Mgmt did a workover on the JB#1 well, tested it, and were so impressed with the results that they shut-in the well, and immediately started negotiations for the neighbouring property. Which is the 253 acres that the JB#2,3,4,5, are located on. The John Bowen #1 Well is a high pressure well.

Standard operating procedure – professional engineering practice, is to log all wells, open hole, unless casing has been run before hand. Therefore, unless the State and Operator were both asleep at the wheel, JB#1 was logged open hole, in the Fall of 2003. Most unlikely and unbelievable that open-hole logging did not occur. It is also standard procedure for a company buying a well to obtain all such testing information during their due diligence prior to the purchase.

We know that

• JB#1 has pressures similar to the Howard/White #1 Blowout Well, which produced 5 mcf/day of gas and 250 bbls to 750 bbls of oil per hour.
• JB#1 was originally completed open-hole, after which MEO and partners tested, did a workover and retested it. MEO has all the technical data it needed to plan 3 wells at $3 million, which with the drilling of JB#2 became 4 wells and about $12 million.
• Montello and Austin were so impressed with a workover strategy that more than doubled production in similar formations in Alberta, that they shut-in the JB#1 and immediately started negotiations for the 253 acres MEO has drilled 4 wells in since the Fall of 2007

In conclusion we have the data we need to be certain that Montello obtained significantly more than the original 800 bbls/day from JB#1, after the workover, and possibly into the 250 to 750 bbls per hour range encountered in the Howard/White Blowout Well. Using a range of 1,000 bbls to 2,000 bbls per day is justified.