VANCOUVER, British Columbia, Nov. 12, 2004 (PRIMEZONE) -- Montana Oil and Gas, (Pink Sheets:MOGI) is pleased to announce that its cash call for its Sylvan Lake drill program has been paid. Energy 51, the operator, advises that the initial well for the Sylvan lake development drilling program will spud within 2 weeks. The Company will announce the drilling program details when it is underway. Montana Oil and Gas has a 25% working interest in the project. The initial well is a 7,200-foot Peskisko Sand test that is prospective for oil and gas. It is expected to take approximately 10 to 12 days to drill and test the initial well. Each development well has probable production of 150 barrels of oil per day and 750 million cubic feet gas per day with reserves in excess of 1 billion cubic feet gas and 300,000 barrels of oil. There are four other pay zones that are prospective for gas. The average well in the Sylvan Lake Field has produced 500 barrels of oil per day with over one million cubic feet of gas per day. If successful, the company intends to drill up to 4 more wells on these land sections.
The president of Montana oil and gas Peter Sanders stated, "Having the chance to participate in the Sylvan Lake area is a tremendous opportunity, all the majors are there and the area has been prolific for oil and gas since the 1950's."
Montana Oil and Gas would also like to update investors with their gas well in West Lock, Alberta, Canada. Due to unforeseen delays in pressure reading tests, the company anticipates announcing its flow rates and a date to tie the well into a pay line in the near future. Peter Sanders also noted, "Some delays are inevitable in the oil and gas industry, we would like to thank our shareholders for their patience with us while we wait for the operator to report the flow rates on our Westlock well." "We anticipate we will have that information any day and will report the flow rates as soon as we receive them."
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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.