Montello Resources Ltd.

Montello Resources Ltd.

August 24, 2007 19:56 ET

CORRECTION FROM SOURCE: Montello Resources Ltd. Announces Alberta Exploration Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 24, 2007) - Montello Resources Ltd. (TSX VENTURE:MEO) -

On the press release issued for Montello Resources Ltd. on Thursday August 23, 2007, we have been advised by the company that in the 4th paragraph, 18,000 BCF, 24,000 BCF and 30,000 BCF should have read 18.0 BCF, 24.0 BCF and 30.0 BCF respectively. The correct release follows.

Montello Resources Ltd. is pleased to announce the signing of a Letter of Intent (LOI) along with an AFE to participate in the Mannville Re-Completion of the Pennine et al Pinh Ck 1-11-4-29W4M well at Pincher Creek, Southern Alberta starting on or before August 31st.

Montello is farming into the PN&G rights held by Pennine Petroleum Corporation ("Pennine") in the Pincher Creek area of Southern Alberta. Montello shall also have the right of Option, to be exercised within 45 days of notification, to participate as to a minimum of 25% of Pennine's interest in the drilling, completion, or abandonment of any proposed well on the lands held by Pennine within the area of Township 3 and 4 Range 28 to 29 W4M. These lands are approx. 175 kilometres south of the City of Calgary, and consist of both Crown leases and Freehold leases representing 10,560 gross acres (approx. 4,851.2 net acres to Pennine). There are several projects in the Pincher Creek area for example the upcoming "Upper Zones Play" mentioned below, which both companies feel represents an opportunity to undertake immediate operations to obtain production and prove up additional target wells for revenue enhancement.

Montello is farming in for twenty five percent (25%) of the re-completion and testing of the Brown Sand and Mannville formation of the well bore "Pennine et al Pinh Ck 1-11-4-29W4M". Pennine is the Operator and has a Working Interest (WI) of 37.5%, and plans to re-complete the 1-11 well on or before August 31st in the Mannville Sands with Montello, Paramount Resources, and a Private Company as the Joint Venture Partners. This prospect has similar characteristics to a Chamealo well producing 125 BOPD and 3 MMCFD re-completed in 2006 in the Lookout Butte field, approximately 15 kilometres to the south of this location. The Pincher Creek prospect has tie-ins to local facilities and has shown a total possible raw gas reserve of 16.92 billion cubic feet (3.81 million cubic feet potential to the companies), based on a December, 2006 Report of an Independent, Calgary Engineering Firm. It is believed that each of two zones being tested is of similar reservoir quality.

Next up, Montello shall have the option to be exercised within 45 days of notification, to participate as to a minimum 25% of Pennine's interest in the drilling, completion or abandonment of the proposed deep Rundle Test Well to be drilled at the location of 6-12-4-29W4M4. Pennine again will be the Operator of the Rundle prospect in the Pincher Creek Area and intends to drill at least one well into the Rundle formation on or by December 31st, 2007. There is Rundle production within two miles of the prospective location. The Rundle zone is expected to be encountered at a depth of 3,880 metres. An independent third party Calgary engineering firm has estimated the prospective resources range from 18.0 BCF (raw gas reserves) low estimate, to 24.0 BCF with best estimates up to 30.0 BCF - high estimate. It is believed given full 3D Seismic, that there is an untested imbricate thrust fault that lies out in front of the northern part of the main producing Rundle Formation imbricate. Since this project is in an active gas producing area, the predominant risk is the possibility of the well not encountering a reservoir of sufficient quality to yield the expected rates and drainage area as predicted, or that the target sheet is not isolated from the producing reservoir. A probability of 36 % has been estimated for the best estimate case.

About Pincher Creek

The Pincher Creek Field has been one of the most prolific fields in Alberta. It is a structurally-controlled, over-thrusted imbricate stack that has been producing since 1947 and to date has produced some 600 BCF of gas and 1 million + BBLs of associated liquids from the Mississippian-age carbonates of the Turner Valley (Rundle) formation. It is believed that an estimated 225 BCF of gas remains to be produced from the Mississippian formations in the productive plates that have been accessed thus far, although present production from Pincher Creek is 2 MMCFD. Palaeozoic carbonates have been prolific targets in the region with the Waterton, Turner Valley, Coleman, Savanna, Lookout Butte, Jumping Pound, etc., fields having produced many TCF of gas and hundreds of millions of barrels of associated liquids. However, due to the time of discovery and the focus on the Mississippian carbonates as the objective target, little attention was paid to the overlying Cretaceous and Jurassic sections that were effectively by passed through en route to the Mississippian below - especially once the initial discovery was made and subsequent drilling was development-driven. Only seldom were any of the uphole zones evaluated in any fashion, however limited testing indicated that there were uphole hydrocarbon accumulations. These zones were not considered of interest at the time, especially with the prolific Mississippian as the development target.

The most promising uphole zones identified thus far are the Lower Cretaceous Cadomin and Lower Cretaceous to Upper Jurassic Kootenay / Nikanassin (Brown) sand units. The Cadomin is the primary producing zone in the northern fields while the Kootenay equivalents are productive in the Turner valley. Analogous zones in recent Talisman wells typically have Initial Production and sustainable production rates of 2.0 MMCFD and 100 BOPD respectively. Individual wells typically have cumulative production values of between 3 BCF and 6 BCF for the Cadomin and Brown sands respectively. These uphole zones at Pincher Creek are structured and sometimes imbricated in a continuation of the same over thrusting episode that affected the underlying Mississippian carbonates.

The concept for this uphole zone play is simply to follow sand development across the Pincher Creek structure and access these hydrocarbon-bearing sands via existing wellbores - possibly leading to drilling development. Montello is very enthusiastic about the opportunity here and is looking forward to a close JV Relationship with Pennine.

About Pennine Petroleum Corporation

Pennine Petroleum Corporation is an emerging Alberta-based junior oil and natural gas company with projects located in Western Canada and selective international locations. The Company's goal is to create growth in production cash flow by focusing on drilling and well re-completions in which the Company operates. N. Desmond Smith, B.Sc. Geol. is the President; Peter Brown is a Board Member and VP of Exploration providing field geological, research and planning services; and Randy Marshall, P.Eng. is their new VP of Engineering.

About Montello Resources Ltd.

Montello Resources Ltd. (TSX VENTURE:MEO),, is an emerging, publicly traded company listed on the TSX Venture Exchange, is engaged in high impact oil and gas exploration "hunting for elephant(s)" in the Tennessee Appalachians. The John Bowen #2 Test Well which commenced August 15th is expected to take between 30 to 45 days to drill and test. On August 15th, Montello with its JV Partners initiated drilling of the John Bowen # 2 Test tentatively to the Precambrian/Granite-Basement. Its total depth is estimated to be between 7,000 to 9,500 feet. Montello is and will be testing and evaluating the various formations while it drills under-balanced. We will be using the services of an independent Geologist and Geophysicist to evaluate and analyze the logging data. The Morgan Highpoint Project is located in a part of the State of Tennessee where a limited number of deep tests have been drilled from the late 1960's through to the early 1980's. Nabors Drilling USA, Strata Energy Services of Red Deer, Alberta and Pason Systems Inc. of Calgary, Alberta are the current key drilling and service contractors to date.

Montello is commencing its Alberta Exploration Program by farming in on a Mannville Re-completion to be started on or before August 31st. A Deep Rundle Test is scheduled to commence on or about December 31st, 2007. Pennine Petroleum Corporation will be the Operator. Internal engineering is being provided by Randy Marshall, P.Eng. formerly the COO & VP of Engineering at Montello. These prospects lie in an active gas producing area, and offset some of the largest producers in the Pincher Creek Field. The Company believes great potential lies in this field and is pleased to announce the commencement of its development program for the area. The Pincher Creek Field has been one of the most prolific fields in Alberta having produced some 600 BCF of gas and 1 million + BBLs of associated liquids. It is believed that an estimated 225 BCF of gas remains to be produced.


William R. (Bill) Cawker, President-CEO

For further information please contact: Larry Myles at weekdays at 604-408-7600 from (10 am EST / 8 am MST) until (6 pm EST / 4 pm MST). Please refer to our web site for ongoing updates and have your name included on our preferred mailing list. Please also cc your email to re questions.

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. "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 equivalency 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