VANCOUVER, British Columbia, June 22, 2005 (PRIMEZONE) -- Montana Oil and Gas (Pink Sheets:MOGI) reports the following update on its Sylvan Lake project and Westlock Gas well. The Operator has moved the production on the 1-5-60-25W4M West Lock gas well up to between 500 and 675 thousand cubic feet per day, or just over a hundred barrels of oil a day equivalent, over the first couple of weeks in May. Pressures will continue to be monitored over the next several weeks before a decision to increase the volumes will be made. Peter Sanders, President of Montana Oil and Gas comments, "These are excellent volumes of gas and with natural gas prices continuing to soar, the company is pleased with this well's performance so far."
The Sylvan Lake project was drilled to total depth on May 22nd 2005. The company's project continues to be plagued by bad weather causing delays beyond the company's control. Record flooding in Alberta Canada, described by some officials as a one in two hundred year event, has lead to the evacuation of thousands of people from their homes and businesses. The Operator has informed Montana Oil and Gas and their partners that due to the heavy rains and flooding they have been unable to get the large rig off the site and move on a service rig in order to perform a cased hole logging program. Peter Sanders notes, "The operator has done a great job on this well to date and it is unfortunate that the weather has interfered with this project. We look forward to some favorable weather so we can resume logging as soon as possible."
The company would also like to inform its shareholders that it has been in ongoing negotiations involving other projects it plans to participate with. Details will be made upon the closing of the said negotiations.
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.
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