Monterey Exploration Ltd.

Monterey Exploration Ltd.

February 19, 2010 08:45 ET

Monterey Exploration Ltd. Completes $20 Million Financing and Provides Operational Update

CALGARY, ALBERTA--(Marketwire - Feb. 19, 2010) - Monterey Exploration Ltd. ("Monterey" or the "Corporation") (TSX:MXL) has closed its previously announced offering of 4.762 million common shares at an issue price of $4.20 per common share for total gross proceeds of approximately $20 million (the "Offering"). The Offering was led by Cormark Securities Inc. and included Wellington West Capital Markets Inc., Acumen Capital Finance Partners Limited and GMP Securities L.P. Proceeds of the Offering will be used to finance the Corporation's exploration and development activities of its Montney gas project located in the Groundbirch area of northeast British Columbia and for other general corporate purposes.

After giving effect to the Offering, Monterey has 45,764,500 common shares issued and outstanding.

Operational Update

Monterey's previously announced exploration and development activities for the first quarter of 2010 continue as planned and on budget with multiple operations occurring in the field at Groundbirch. The third horizontal development well at 13-27-80-21 W6M ("13-27") which spud January 29th is currently drilling the build section in the Montney formation and is anticipated to reach total depth of approximately 4,200 meters by the first week of March. The vertical stratigraphic test at 16-31-80-21 W6M ("16-31") spud January 30th and is expected to reach total depth during the last week of February.

Fluid hauling and all preparatory work for the horizontal completion operations on both 2-21-80-21 W6M ("2-21"), drilled and cased in the second week of January 2010, and 13-27 have been completed and the fracture stimulation operations are scheduled to commence at 2-21 at the end of February with 13-27 to follow shortly thereafter. The 16-31 well is also scheduled to be completed and tested in the primary zones of interest during the first half of March.

Monterey is scheduled to release its 2009 audited financial statements and operating results and the 2010 first quarter operational results during the week of March 22, 2010.

Reader Advisory:
This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian securities legislation (collectively, "forward-looking information"). Specifically, this press release contains forward-looking information relating to the use of proceeds of the Offering, Monterey's drilling and completion operations at Groundbirch and release of the Corporation's 2009 audited financial statements and operating results for 2009 and the first quarter of 2010. The forward-looking information is based on certain key expectations and assumptions made by Monterey, including assumptions concerning the state of the economy, the exploration and production business, timing and availability of services provided by independent third parties and the review and approval of financial and operational information by the Corporation's board of directors, which expectations and assumptions management of Monterey believes to be reasonable at this time. Although Monterey believes that the expectations and assumptions on which such forward-looking information is based are reasonable at the date of this press release, undue reliance should not be placed on the forward-looking information as Monterey can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by their very nature they involve inherent risks and uncertainties. The intended use of the proceeds of the Offering by Monterey may change if the board of directors of Monterey determines that it would be in the best interests of Monterey to deploy the proceeds for some other purpose. Drilling and completion plans may change depending on drilling results, the state of the economy and management's assessment of other oil and gas opportunities. The forward-looking information contained in this press release is presented as of the date hereof and Monterey undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Contact Information

  • Monterey Exploration Ltd.
    Patrick D. Manuel, P.Eng.
    President and Chief Executive Officer
    (403) 691-7725
    Monterey Exploration Ltd.
    David M. Fisher, C.A.
    Vice President, Finance & Chief Financial Officer
    (403) 691-7725