VANCOUVER, British Columbia, May 17, 2005 (PRIMEZONE) -- Montana Oil and Gas Corp. (Pink Sheets:MOGI): Ensign Drilling has resumed drilling at the 6-3-38-3 W5M well, located on the Sylvan Lake Prospect as of Monday, May 16. The county of Red Deer, Alberta has removed a restriction on heavy equipment and trucks on its county roads. As previously reported, the Sylvan Lake Prospect is a well-defined 3-D seismic structural high within a preserved Pekisko remnant "island" that may have virgin reservoirs with similar production potential as the adjacent N Pool where six wells have produced 680,000 barrels oil since 1997. In the overall, the Sylvan Field has produced 40 million barrels oil from the Pekisko formation and 50 billion cubic feet gas from the Shunda formation.
The hole is planned to reach a total depth of 7,470 feet. A total of 30 feet in the Shunda gas formations at 7,155 feet and 30 feet of Pekisko oil formation at 7,320 feet may then be tested. The drilling and testing is expected to take approximately 10 days.
Montana Oil and Gas has a 20% working interest in the Sylvan Lake project that has the potential for four oil wells and one gas well. Each well has the potential to produce approximately 150 barrels oil per day from the Pekisko formation with potential reserves of 250,000 barrels oil. In addition, the Shunda gas formation, which is a secondary target, has the potential for approximately 1,000,000 cubic feet gas per day with potential reserves of three billion cubic feet gas.
The company encourages all shareholders and potential shareholders to view a full Project Description of Sylvan Lake that can be found on the company's news release dated April 29th 2005. Visit our web site at www.montanaoil.com
Safe Harbour 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.