VANCOUVER, British Columbia, March 18, 2005 (PRIMEZONE) -- Montana Oil and Gas, Inc., (Pink Sheets:MOGI) President Peter Sanders would like to announce the following update. Due to the erratic weather Alberta Canada has been experiencing, road bans affecting many of the oil and gas exploration companies in the region have put Montana's Sylvan Lake program slightly behind schedule. The operators have indicted that the drilling equipment has now been placed on several trucks that will be under the required weight restrictions allowing us to move the rig on Monday, March 21, 2005.
The initial well at Sylvan Lake is a 7,200-foot Peskisko Sand test that is prospective for oil and gas. It is expected to take approximately 10 to 12 days to drill and test the initial well. Each development well has probable production of 150 barrels of oil per day and 750,000 cubic feet gas per day with reserves in excess of 1 billion cubic feet gas and 500,000 barrels of oil. There are four other pay zones that are prospective for gas. The average well in the Sylvan Lake Field has produced 500 barrels of oil per day with over one million cubic feet of gas per day. If successful, the company intends to drill up to 4 more wells on these land sections. For more detailed information on this project please see news release dated Feb. 7th, 2005. An announcement will be made immediately upon the commencement of drilling.
The company would also like to report that the tie in of its West Lock Project was also affected by the weather; the equipment required for tie in is on site and ready to go. The company expects this tie in to be started next week and flow rates to be established shortly thereafter. The company will issue news to its shareholders when this has been completed.
Montana Oil and Gas President Peter Sanders notes, We would like to thank all of our shareholders for their patience, during what most would describe as a very unusual year weather wise."
Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Montana Oil and Gas Inc. has little or no control.
For more information, please visit our website www.montanaoil.com
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