VANCOUVER, B.C., Jan. 31, 2005 (PRIMEZONE) -- Montana Oil and Gas Inc. (Pink Sheets:MOGI) is pleased to announce that its' joint venture partners Energy 51 Inc., have been issued a well license from the AEUB (Alberta Energy and Utility Board). Montana Oil and gas, along with its joint venture partners, intend to drill the first of several potential wells in the immediate area. Montana Oil and Gas will participate in a minimum 4 well program on a third for a quarter basis called Sylvan Lake, located west of Red Deer, Alberta. Montana Oil and Gas's cost per well is $180,000 USD, with the first well to be drilled as soon as a drilling rig becomes available (The company anticipates this to happen in next few days). It is a 7,200-foot Peskisko Sand test that is prospective for oil and in upper pay zone "Shunda" for gas. Each development well has probable production of minimum 150 barrels of oil per day and 750,000 cubic feet gas per day with potential reserves in excess of 1 billion cubic feet gas and 300,000 barrels oil. There are five prospective pay zones, the average well in the Sylvan Lake Field has produced 500 barrels oil per day with over one million cubic feet gas per day. President Peter Sanders commented, "With the recent news concerning one of the largest finds ever in the Sylvan Lake area by a major, we feel very confident in our next decision to drill."
The operators of the West lock well have informed the company that they are in the final stages of logistics concerning the tying in of the well. The company apologies for the delay, however, the rerouting of our gas line to a pay line will be completed shortly. Montana Oil and Gas Inc. is looking forward to announcing expected revenues concerning this project shortly.
In the company's continuing effort to become a fully reporting issuer, Montana Oil and Gas Inc. has begun the process of getting audited financials, filing of its form 2-11, along with other necessary documents so that Montana Oil and Gas can graduate to a more senior board.
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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.
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