VANCOUVER, British Columbia, May 10, 2005 (PRIMEZONE) -- Montana Oil and Gas, Inc., (Pink Sheets:MOGI) would like to comment on the recent price drop in its share value. With the exception of spring break-up, which has added some delays to the drilling of its Sylvan Lake Program and the tying in of its West Lock gas well, the company knows of no other reason why its share price would suffer such a price drop over the past two weeks.
Spring break-up is an annual event, which occurs in most of Central and Northern Canada when the frost, which may be several feet thick, comes out of the ground. Drilling operations for a large rig such as the Sylvan Lake well requires service by heavy vehicles such as mud, water, cement and vacuum trucks will be prohibited from using the roads during this period of time. This road bans effect every company, including majors.
The company would also like to point out to its shareholders and to the investment community, that not only has it paid out several hundred thousand dollars for the drilling, completion, and tie-in of its West Lock gas well, it has also fully met its just over $200,000.00 commitment, for it's share of the drilling stage of the Sylvan Lake project.
The company is expecting the tying in of the West Lock gas well and Sylvan Lake exploration program to resume very shortly, as road bans have begun to be lifted all over the Province of Alberta.
As of March 30th, the drilling rig was moved onto location and the 5-3-38-3 W5M well was spudded, and has currently been drilled to 1,250 feet and surface casing was run to 930 feet. This particular drilling rig is known as a telescopic double and is rated to drill to 10,000 feet in depth. Drilling is planned to reach a total depth of 7,570 feet, which may take some 10 days to then complete drilling.
The company will issue news when its operators have advised us on either development. A full Project Description of Sylvan Lake can be found on the company's last news release dated April 29th 2005.
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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.