Moneta Resources Inc.

July 07, 2008 11:23 ET

Moneta Resources Completes Sub-Participation Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2008) -


Moneta Resources Inc. ("Moneta" or the "Corporation") (NEX:MOT.H) is pleased to announce the details concerning the joint participation agreement and subject lands in Montana (the "Transaction") which closed June 30, 2008.

Moneta entered into a Sub-Participation Agreement, effective June 11, 2008, with Triangle USA Petroleum Corporation Ltd. ("Triangle"), where Triangle would assign its rights in an exploration agreement dated December 7, 2005 between Triangle and Hunter Energy LLC (the "Participation Agreement") to Moneta. Pursuant to the Participation Agreement, Triangle is required to participate in the drilling of one vertical test well on certain joint interest lands consisting of 38,767 contiguous acres in Valley County Montana. Moneta provided Triangle a gross amount of $812,000 on June 30, 2008 to close on the assignment of certain obligations as set out in the Sub-Participation Agreement. Moneta will also pay 33.33% of the cost to participate in the drilling of a test well on the Montana Property to a depth of 5,500 feet to test for Nisku oil potential and further evaluate the Sunburst, Bakken, and for other up-hole potential ("Test Well"). In conformity with both 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.

David Greenway, President and CEO, would like to welcome the newest board members, Ken Berscht, Bryce Bonneville, and Tyler Cran to the Moneta Resources team to increase the depth of oil and gas experience in Moneta. The Montana Property was identified as a significant asset in Moneta's plan to further grow as an emerging oil and gas company through continued exploration and asset development. Moneta intends to continue its growth in conventional oil and gas assets throughout the North Western United States and Western Canada. Please refer to the June 13, 2008 press release for additional detail on the new directors and the Montana project. David Greenway would also like to thank Neil Linder and Gunther Roehlig for their service as directors and wishes them well on their future endeavours.

Proposed Operations

Moneta intends to use its existing cash and proceeds from the recent exercise of outstanding share purchase warrants to drill the Test Well on the Montana property, likely in the fourth quarter of 2008. Upon completing the Test Well, Moneta intends to prepare a National Instrument 51-101 reserve report allowing Moneta to apply for reactivation on TSX Venture Exchange.

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 approvals 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 and Chief Executive Officer
    (604) 683-2277