VANCOUVER, B.C., Canada, Aug. 4, 2004 (PRIMEZONE) -- Montana Oil & Gas (Pink Sheets:MOGI) Montana Oil & Gas would like to announce that it has paid the first cash call issued under their Joint Venture Agreement with Energy 51 Inc. announced June 29, 2004, to drill its 50% interest in the West Lock gas well. The well is located 32 miles north of the City of Edmonton serviced by all weather roads and in a gas prone area supported by all the necessary gas gathering systems to immediately sell gas upon completing the well.
The well will be approximately 1030 meters (3,300 feet) in depth to test the Ellerslie Formation of Lower Cretaceous age as the main target with several secondary zones up the hole. An offset well one half-mile away has been producing gas from the same zone at a rate of 1.4 million cubic feet gas per day for 16 months and has now received Government approval to increase its allowable production to 2.0 million cubic feet gas per day. Peter Sanders, President of Montana Oil and Gas stated, "This is a tremendous opportunity for MOGI, to become involved in a project with such tremendous upside. We are looking forward to drilling in such a prolific gas region. This prospect has substantial potential and we look forward to beginning this project as soon as possible.
Geological mapping and some 2-D seismic have both confirmed that the Montana location should be in the same zone as this off-set well yet even structurally higher. All primary and secondary zones will be tested on reaching total depth.
The well location has been surveyed and will be spudded, (or started) within two weeks.
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors effecting the Company's operations, markets, products and prices and other factors discussed in the Company's various filings with the Securities and Exchange Commission.