Montello Resources Ltd.

Montello Resources Ltd.

May 12, 2005 12:51 ET

Montello Achieves Commercial Oil Production in Tennessee

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 12, 2005) - Montello Resources Ltd. (the "Company") (TSX VENTURE:MEO) is pleased to provide the following update on its Oil and Gas Leases located in northern Tennessee.

The Company is pleased to announce that the Brooks Number 9 well is currently producing 36 barrels of oil per day. A pump jack is in place, new tank battery is installed, power line and flow lines are connected. The well is now a commercial producer.

A second well, the Brooks Number 8, located on the same property, is undergoing swab testing and is also producing oil at approximately 28 barrels of oil per day. A pump jack has been installed. The company is currently completing flow lines and power lines to this well. The Brooks Number 8 well will connect to the same battery as the Brooks Number 9 well and will be soon in commercial production.

Both Brooks number 8 and 9 wells are also producing natural gas. The company will test this potential once the oil production hook up is complete.

A third well, the Brooks Number 10 well, also located in the same area, is also producing oil. However, due to inclement weather, the company has been unable to complete testing of this well to date. Once access is available this testing will be finished.

There are five additional wells located on the Brooks Property and the company plans to test each of them for the potential to produce oil and gas.

The Company is continuing to work on its Brooks Number 5 well, the "Knox Prospect". Further to the news release dated March 15, 2005, the "Knox Prospect" was initially drilled to 1,500 feet in the late 1970's and was re-entered and drilled to its present depth of approximately 3,600 feet in the late 1980's. After testing the lower Knox formation, this past work determined that it was uneconomic for oil and gas. Montello agrees, however, after the success of the Brooks Number 8 and Number 9 wells (as mentioned above), it is now realised that economic formation containing oil and gas was recorded in Brooks Number 5 well by the earlier drilling but never tested. Given the close proximity to the producing Brooks number 8 and 9 wells the company has given high priority to testing the Brooks Number 5 well in the same productive formations.

Tennessee had been receiving unseasonably wet weather and this has hindered the Companies progress in completing tie-in on the Tompkins gas property. Work in these boggy conditions would have caused damage to the unsealed roads and fields in the area. In respect to the local landowners wishes, the company ceased work to prevent such damage. The area is now sufficiently dry and tie-in work has recommenced. There are 14 wells located on the Tomkins Property of which the company aims to tie-in 12 in the near-term.

To view new pictures of the progress in Tennessee, please check out our web site at



Patrick Power, President

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