Montello Resources Ltd.

Montello Resources Ltd.

November 25, 2008 16:07 ET

Montello Provides Update on Highpoint Tennessee, Pincher Creek and Mulligan, Alberta Operations

CALGARY, ALBERTA--(Marketwire - Nov. 25, 2008) - Montello Resources Ltd. ("Montello") (TSX VENTURE:MEO) is pleased to announce that, subsequent to the issuance by Montello of an independent operations notice to its partners, the well (Pennine Pincher Creek 1-11-4-29 W4M) has been re-entered by Pennine with the objective of confirming the production capability of the Brown Sand formation. Upon the well being opened to flow, gas was recorded at the wellhead and oil flowed to surface from the Brown Sand formation for a continuous period of 33 hours with a total oil recovery of 327 barrels of condensate, at which time the pumpjack was activated but had to be shut down due to overheating. The pumpjack was activated the following morning without being able to pump any fluids to the surface, due to mechanical failure in Montello's opinion. The well has been shut-in and secured pending a technical review of the mechanical pumping configuration.

In Tennessee, Montello is currently onsite at the John Bowen No. 2 well, and is heading into day 8 of its completion attempt in the deep gas zone. The Company expects to perforate the zone of interest shortly. As previously announced, cased hole logs that were run by Schlumberger confirmed a potential gas zone at 8,275 feet in the Rome Formation.

At Mulligan, Montello has recently completed the construction of a water pipeline, which is allowing the Company to dispose more water including 3rd party sources. This will resolve any potential voidage issues going forward as well as increase daily oil production.

As previously announced, Montello is seeking approval for a non-brokered flow-through private placement unit financing consisting of up to 1,550,000 units priced at $0.31 per unit, with proceeds of $480,500 from the offering. The proceeds of the offering will be applied towards Montello's oil and/or natural gas properties in Morgan County, Tennessee, and exploratory-completion activities on Montello's Alberta properties.

By month end Montello will have filed its annual engineering report and its audited year end financials.


Montello Resources Ltd.

Peter C. Brown, President-CEO

All prospective and current shareholders of Montello Resources are invited to join the company's official investment forum exclusively at Pinnacle Digest: The forum allows for investor controlled discussion, questions and progressive feedback from other shareholders and investors. Third party reports on the company are also available at Please also go to for a detailed list of all Montello's filings and to our web site for articles, photos, previous news releases, financials, etc.

Reader Advisory: This news release contains certain forward-looking statements, including management's operations and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Corporation's control. The Corporation's actual results, performance or achievements could differ materially from those expressed in, or implied. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. There can be no assurances that future developments affecting Montello will be those anticipated by management. Furthermore any forward-looking statements contained in this news release are made as at the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise them whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. We Seek Safe Harbor.

"BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value eequivalency at the wellhead."

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information