Moneta Resources Inc.
NEX BOARD : MOT.H

June 13, 2008 17:17 ET

Moneta Announces Sub-Participation Agreement

CALGARY, ALBERTA--(Marketwire - June 13, 2008) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Moneta Resources Inc. ("Moneta" or the "Corporation") (NEX:MOT.H) today announced details concerning a proposed joint participation agreement concerning lands in Montana (the "Transaction").

Moneta has entered into a sub-participation agreement with an effective date of June 11, 2008 (the "Sub-Participation Agreement") with Triangle USA Petroleum Corporation Ltd. ("Triangle"), pursuant to which Triangle has assigned its rights in an exploration agreement dated December 7, 2005 between Triangle and Hunter Energy LLC (the "Participation Agreement"). Pursuant to the Participation Agreement, Triangle is required to drill one vertical test well on certain joint participation lands consisting of a 38,767 contiguous acre land position in the Valley County area of Montana (the "Montana Property") with established analogous production in the area. The Montana Property is comprised of federal, state, and fee leases with an average royalty of 20% and no further encumbrances.

Pursuant to the Sub-Participation Agreement, Moneta will pay Triangle CDN$812,000 in consideration for Triangle's land, geological and geophysical expenses incurred on the Montana Property to date, and will thereafter assume all of Triangle's obligations set out in the Participation Agreement. Moneta will also pay 33.33% of a the cost to drill a test well on the Montana Property to a depth of 5,500 feet below the surface to test for Nisku oil potential and evaluate the Sunburst, Bakken, and other up hole potential (the "Test Well").

Pursuant to the Participation Agreement and the Sub-Participation Agreement, Moneta will earn a 25% non-operating working interest in all rights to the Montana Property after Moneta drills the Test Well.

Proposed Operations

Moneta intends to use its existing cash assets, as well as the proceeds from the exercise of outstanding share purchase warrants of Moneta, to drill the Test Well on the Montana Property targeting the Nisku formation, likely in the fourth quarter of 2008. Upon completing the Test Well, Moneta intends to prepare a National Instrument 51-101 reserve report and, depending on the results from the well and the report, Moneta may apply for reactivation on TSX Venture Exchange Inc. Moneta also continues to pursue other petroleum and natural gas opportunities.

Moneta Corporate and Capital Structure

Moneta was incorporated under the laws of British Columbia in May 1985. The registered and records office of Moneta, as well as its head office, is located at 1207 - 409 Granville Street, Vancouver, British Columbia V6C 1T2.

As of the date of the press release, Moneta has 34,651,763 common shares (the "Moneta Common Shares") issued and outstanding and no stock options, warrants or other dilution as of the date hereof, other than stock options to purchase an aggregate of 900,000 Moneta Common Shares at a price of $0.20 per share (the "Moneta Existing Options"); and share purchase warrants to purchase an aggregate of 22,600,000 Moneta Common Shares at a price of $0.10 per share until June 29, 2008 (the "Moneta Warrants").

Directors and Officers of Moneta

The current officers of Moneta are David Greenway, President & Chief Executive Officer and Ron Ho, Chief Financial Officer.

The current directors of Moneta are David Greenway, Neil Linder, and Gunther Roehlig.

After completion of the Transaction, Neil Linder and Gunther Roehlig will resign from the Board of Directors of Moneta and Tyler D. Cran, Bryce Bonneville and Ken Berscht will join the Board of Directors of Moneta. Mr. Roehlig will remain on Moneta's advisory board. After completion of the Transaction, David Greenway will continue as the President and Chief Executive Officer of the Corporation and Ron Ho will continue as Chief Financial Officer.

Tyler D. Cran, age 58, graduated in 1973 from the University of Alberta. Upon graduation, Mr. Cran worked with Husky Energy Inc. and then with Murphy Oil Company (Canada) Ltd. where he was active in all areas of their land activities. In 1978, Mr. Cran joined Landbank Minerals as a land manager and subsequently formed his own exploration company, Cardinal Energy Ltd., which he sold in 1985. Mr. Cran has since been active in both the energy and real estate industries from 1985 until present. In November 2004 he became president and a founder of Andora Energy Corporation, a company developing a large scale SAGD property in the Peace River area of Alberta (V.POE); in June 2006 he became a founder and chairman of Sentinel Rock Oil Corporation a company involved in heavy oil development in Alberta and Saskatchewan (V.SEN); in April 2007 he became a director and founder of Black Mountain Energy Corporation, a private exploration company focused on the development of natural gas in N.E. British Columbia; and in June 2007 became chairman of Oilsands Real Estate Development Corporation (formerly, Oilsands Development Corporation), now a company involved in the development of large scale real estate holdings in Fort McMurray, Alberta.

Bryce G. Bonneville, age 36, graduated from the Faculty of Law, University of Western Ontario in 1997. Prior to that, he obtained a Bachelor of Commerce degree from the University of Calgary in 1993. Mr. Bonneville is a member of the Law Society of Alberta. Since June 1998, Mr. Bonneville has practiced in the area of securities and corporate commercial law, and has had his own firm from January 2001 until June 2006. Mr. Bonneville has participated on a regular basis in the organization and finance of start-up and ongoing business ventures and negotiation of agreements in mergers and acquisitions transactions He is a founder of Andora Energy Corporation, Sentinel Rock Oil Corporation and Black Mountain Energy Corporation.

Mr. Berscht brings to the company considerable experience in the financing oil and gas industry. He is a graduate of the Business School, University of Western Ontario, member of the society of Mining and Metallurgy, and is qualified as an IFA in England. In his career as a broker, he has qualified with the investment Dealers Association in Canada and as a General Principal with the NASD and the NYSE in the USA. In his career as a broker, he has managed institutional accounts in Switzerland and Europe. Ken was also directly responsible for bringing investors from Taiwan and Japan into the equity markets in Canada. In the oil and gas industry he has been Vice President of Enerplus International, one of Canada's largest Oil and Gas Income Trusts. He has assisted in financing a number of junior companies in the petroleum industry including such names as Alberta Oil and Gas, Maxx petroleum and many others in their formative stages in Canada. He was instrumental in financing a ten million dollar well in Benin West Africa and Keltic Petrochemical with a plant in Nova Scotia. For the past six years, he has been the administrator of an Oil and Gas fund in the Cayman Islands and holds a license as a mutual fund administrator.

Closing

Closing of the Transaction pursuant to the Sub-Participation Agreement is scheduled to take place before June 30, 2008 and is subject to the receipt of Board of Directors approval of Moneta, receipt of all necessary regulatory and stock exchange approval, and other usual conditions.

Other Matters

Moneta also hereby reserves a price of $0.25 in connection with the proposed grant of up to 1,600,000 incentive stock options of Moneta pursuant to the Stock Option Plan of Moneta to be granted to the new directors and consultants joining Moneta upon the closing of the Transaction.

As indicated above, completion of the Transaction is subject to a number of conditions, including but not limited to, TSX Venture approval. The Transaction cannot close until the required approval are obtained. There can be no assurance that the Transaction will be completed as proposed or at all.

Investors are cautioned that any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Moneta should be considered highly speculative.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Moneta will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Moneta.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the Transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Moneta Resources Inc.
    David Greenway
    President
    (604) 683-2277