Montello Resources Ltd.

Montello Resources Ltd.

December 11, 2007 15:00 ET

Montello Closes Purchase of Vanguard Working Interest and Finishes Drilling Both Shallow Gas Wells at Grouard, Alberta

CALGARY, ALBERTA--(Marketwire - Dec. 11, 2007) - Montello Resources Ltd. ("Montello") (TSX VENTURE:MEO) is pleased to announce approval of their agreement with Vanguard Exploration Corp by the TSX Venture Exchange to purchase an undivided 6% working interest from the base of the Mannville Formation to the basement in "Sale Lands" encompassing approximately 2,560 acres on the T'suu Tina Reserve located 15 miles west of Calgary, Alberta.

Key to the acquisition is a 6% interest in the suspended 10,957 foot 12-13-23-4 W5M cased potential Rundle Gas Well ("12-13 Well"). After conducting a detailed analysis of the 12-13 Well logs as well as logs from other wells in the area Chapman Petroleum Engineering Ltd. ("Chapman"), an independent petroleum engineering firm, prepared a Reserve and Economic Evaluation Report dated as of January 1, 2007 and assigned 190.3 feet of net pay to the 12-13 Well and 144 feet of net pay to the 7-23-23-04 W5M location ("7-23 Well Location") which is included in the Sale Lands. Chapman assigned gross Probable Developed Non-producing Marketable Gas reserves of 13.757 BCF and Probable Undeveloped Marketable Gas reserves of 10.41 BCF attributable to the 12-13 Well and the 7-23 Well Location respectively.

Montello has now purchased these interests from Vanguard Exploration Corp. based on the 10% discount factor value attributed to the Probable Developed Non-Producing gas reserves in the 12-13 Well and the 15% discount factor value attributed to the Probable Undeveloped gas reserves of the 7-23 Well Location as assigned by Chapman pursuant to their Reserve and Economic Evaluation Report, dated as of January 1, 2007 and updated as of November 1, 2007. Filing documentation was accepted by the TSX Venture Exchange pursuant to an assignment and novation agreement dated Nov. 1, 2007, whereby Montello agreed to this acquisition for the consideration of 11,663,333 common shares of the Company valued at CDN $3,499,000 at a deemed price of 30 cents per share from treasury, which are subject to a (4) four month hold. This acquisition is beneficial to Montello in that it provides the company a net 8.5% interest versus its previous 2.5% working interest in the upcoming recompletion of the 12-13 Well as well as in the follow-up 7-23 Well Location which Montello also has the right to participate in, on a straight up basis, as to an undivided 8.5% working interest.

On December 6th 2007 Montello's Operating Joint Venture Partner, Northern Sun Exploration Company Inc., announced that it has drilled two multi-zone gas wells at Grouard, approximately 500 km northwest of the city of Edmonton.

The logs for the wells are currently being reviewed and the wells will be tested imminently. Montello farmed in on these two gas exploration wells pursuant to the terms of a farm-in agreement signed with Northern Sun Exploration Company Inc. whereby Montello earns a 35% working interest subject to minor overrides in each well in return for paying 50% of the drilling costs. These two gas wells represent multi-zone targets into the Debolt formation at an estimated depth of 850 metres. Upon a successful test, the gas wells will be tied-in to a nearby pipeline.

About Montello Resources Ltd.

Montello Resources Ltd. (TSX VENTURE:MEO),, is an emerging, publicly traded company listed on the TSX Venture Exchange in Canada. Montello is engaged in high impact oil and gas exploration "hunting for elephants" in the Tennessee Appalachians as well as in Alberta. Montello is also active in the Pincher Creek Area in Alberta where Montello recently participated, as to a 25% interest, in a successful recompletion of the Brown Sand and the Cadomin / Kootenay sections in the 1-11-4-29W4 well location. 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.


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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