VANCOUVER, British Columbia, Feb. 17, 2005 (PRIMEZONE) -- Montana Oil and Gas Inc. (Pink Sheets:MOGI) announces that the Sylvan Lake oil and gas project is still awaiting a rig at this time. The surface lease has been constructed and we have been waiting for a rig to become available for over two weeks, and anticipate this to happen next week at the latest. The Company has a 25% working interest in the Sylvan Lake project.
Peter Sanders notes: "With the prices of oil at all-time highs and with the popularity of drilling in Alberta, Canada, the demand for rig and crew is at an all-time high as well; all we can do is be patient until a rig is secured. All permits are in place and shareholders will be updated once drilling begins."
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' cost per well is $180,000, with the first well to be drilled upon rig availability. 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 a 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.
For more information visit our web site at www.montanaoil.com
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.