Montello Resources Ltd.
TSX VENTURE : MEO

Montello Resources Ltd.

September 04, 2007 09:45 ET

Montello Begins to Set Intermediate Casing on John Bowen # 2 Test Well in Morgan County, Tennessee

CALGARY, ALBERTA--(Marketwire - Sept. 4, 2007) - Montello Resources Ltd. ("Montello") (TSX VENTURE:MEO)(PINK SHEETS:MLORF) is pleased to announce that 9 5/8 inch intermediate casing complete with a down-hole deployment valve is in the process of being run to a total depth of 2,200 feet in the John Bowen # 2 Test Well located in Morgan County, Tennessee. Montello and its participating partners, Austin Developments Corp., as to a 40% earned interest (TSX VENTURE:AUL) and Great Northern Oilsands Inc., as to a 5% earned interest (PINK SHEETS:GNNS) elected to run the intermediate casing as a precautionary safety measure in advance of penetrating an anticipated over pressured zone which was present a little over a mile away in Pryor Oil's Howard-White #1 Well (www.pryoroil.com), that when it was drilled in 2002 resulted in the well blowing out. After the Howard-White #1 Well blew out, prior to it being capped, it produced at an estimated initial flow rate of over 400 barrels of light gravity crude per hour. Even though, according to Pryor Oil, the Howard-White #1 Well was also capable of producing in excess of 5 million cubic feet of gas per day, as a result of regulatory issues relating to the blow-out, the Howard-White #1 Well was never re-drilled or placed on production. The same over pressured zone that caused the blow-out in the Howard-White #1 Well was also encountered in the John Bowen # 1 Well which is located less than 250 feet away from Montello's John Bowen # 2 Well. The John Bowen # 1 Well flow tested at 800 barrels of oil equivalent per day prior to being cased and shut-in ahead of a production decision that never came, due to legal issues relating to the untimely death of the well's operator.

Bill Cawker, President and CEO of Montello, states, "After conducting extensive research and hiring an experienced operational team Montello along with its partners have commenced to drill the John Bowen # 2 Test Well at an estimated cost of $3 million. This well will be drilled to a much deeper depth than the two previous wells with the intention of gaining a better understanding of the geology in the area while at the same time proving up significant reserves."

The John Bowen # 2 Well is being drilled underbalanced so as to reduce the risk of another blow-out occurring. By drilling the well underbalanced the well can be continuously flowed with gas and hydrocarbon fluids being liberated to surface to a high pressure test separator as they are encountered. This system is designed to allow Montello to safely drill through the high pressure hydrocarbon bearing zones and evaluate them in real time while at the same time maintaining full well control. Montello anticipates that it will penetrate the first high pressure zone that was present in the Howard-White #1 Well and the John Bowen # 1 Well within the next 400 feet of drilling.

About Montello Resources Ltd.

Montello Resources Ltd. (TSX VENTURE:MEO)(PINK SHEETS:MLORF), www.montello.com, is an emerging, publicly traded company listed on the TSX Venture Exchange in Canada and on the OTCBB in the United States. Montello is engaged in high impact oil and gas exploration "hunting for elephants" in the Tennessee Appalachians. Montello commenced drilling The John Bowen # 2 Test Well on August 15th, 2007. The Test Well is expected to take approximately 45 days to drill to a total depth of between 7,000 to 9,500 feet to tentatively test the Precambrian formation which lies directly above the Granite - Basement. Montello is and will be testing and evaluating the various formations while it drills the well underbalanced. The Morgan Highpoint Project is located in a part of the State of Tennessee where a limited number of deep tests have been drilled. 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 that have been hired by Montello to drill the John Bowen # 2 Test Well.

Montello is also active in Alberta with a re-completion of a Mannville well about to begin. A deep Rundle Test Well is also scheduled to be drilled before year end. These prospects lie in an active gas producing area and offset some of the largest producers in the Pincher Creek Field. The Pincher Creek Field has been one of the most prolific fields in Alberta having produced some 600 BCF of gas and over 1 million barrels of associated liquids.

ON BEHALF OF THE BOARD OF DIRECTORS

William R. (Bill) Cawker, President-CEO

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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 equivalency at the wellhead.

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

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