Montello Resources Ltd.
TSX VENTURE : MEO

Montello Resources Ltd.

December 18, 2008 13:00 ET

Montello Provides Updates on Highpoint, Tennessee & Pincher Creek, Alberta

CALGARY, ALBERTA--(Marketwire - Dec. 18, 2008) - Montello Resources Ltd. (TSX VENTURE:MEO) ("Montello") is pleased to provide a brief update on the work programs for the Chattanooga Shale, the John Bowen #2 Well Deep Test, and Pincher Creek.

The Chattanooga Shale: Montello continues to be committed to the testing of the shallow gas Chattanooga Shale in Tennessee as well as the oil zones in the John Bowen #1 and Morgan Highpoint #3 test wells, with programs being developed for both projects in the new year. The overview below on the "Chattanooga Shale Play" will provide additional background.

The John Bowen #2 Well Deep Gas Test: Montello has been monitoring the deep gas zone which has flowed mud filtrate and drilling fluid into the wellbore with an associated gas blow. In an attempt to facilitate hydrocarbon inflow into the wellbore, Montello has just completed a Nitrogen gas fracturing operation on the deep gas zone. Subsequent to the Nitrogen frac, inert gas was recorded at surface. The well will be shut-in for a period of three to four weeks to allow a pressure build-up prior to re-opening the wellbore. Montello believes that the well bore sustained skin damage at the deep gas interval and will be investigating remedial options.

Pincher Creek: Montello announces that the Alberta Energy Utilities Board hearing into the construction of the Pincher Creek pipeline which was to be held on December 6, 2008, has been re-scheduled to January 22, 2009. The hearing will review the issues surrounding the proposed pipeline tie-in of the Pincher Creek well located at 1-11-4-29 W4M. It has been reported in prior press releases that the said well has been production tested in both of the Cadomin and Brown Sand formations. Both formations have produced light gravity oil/condensate on test.

The Chattanooga Shale Play: is in its infancy with such companies as Atlas Energy (ATN), CNX Gas Company (CNX), Chesapeake Energy (CHK), Range Resources (RRC), GeoMet Inc. (GMET) actively pursuing mineral rights (drilling rights). The methodology is to drill vertical wells followed by new stimulation techniques such as fracturing and horizontal drilling. Given competition amongst participants, there is not a lot of public information available at this time, however, Atlas Energy who has a strong presence, has announced that it has accumulated 105,000 acres in Eastern Tennessee, with a large number of potential horizontal drilling locations and capability for significant production. CNX Gas Corporation (NYSE:CXG), Pittsburgh, PA (July 30, 2008), a leading gas producer by revenue in the Appalachian Basin, in a recent news release confirmed that they have drilled four additional Chattanooga Shale wells after a successful test well. Their release goes on to state as per the link below, that the first two wells are producing with two additional ones in various stages of clean up with "encouraging initial results". CNX have added an additional 100,000 net acres to bring their total net acreage to 235,000.

The Chattanooga Shale Field is an organic, hydrocarbon rich shale found throughout Eastern Tennessee. It is an extension of the Appalachian Basin Devonian Shale, which is known to most as the Marcellus Shale and is believed to hold rich areas of natural gas. It is located in Eastern Tennessee, Northern Alabama, Southern Kentucky and Northeast Georgia. It is thought to be a source rock for the hydro-carbons produced from many of the conventional reservoirs in Tennessee. The shale thickness can vary to in excess of 200 feet. The following links on the Chattanooga Shale are the source for the overview above. They are independent 3rd party sources, which are believed to be reliable, but cannot be guaranteed for completeness or accuracy.

http://oilshalegas.com/chattanoogashale.html

http://phx.corporate-ir.net/phoenix.zhtml?c=193034&p=irol-newsArticle&ID=1181175&highlight=)

http://www.rigzone.com/NEWS/article.asp?a_id=61128

http://www.scandoil.com/moxie-bm2/news/atlas-energy-reports-four-successful-horizontal-we.shtml

ON BEHALF OF THE BOARD OF DIRECTORS

Peter C. Brown, President-CEO

Montello Resources Ltd. (TSX VENTURE:MEO) is a Calgary based, publicly traded company listed on the TSX Venture Exchange in Canada. Operations are geographically focussed in Tennessee and in Alberta. Prospective and current shareholders are invited to join the company's official investment forum exclusively at www.pinnacledigest.com. The forum allows for investor controlled discussion, questions, third party reports and articles, as well as feedback. Please go to www.sedar.com for a detailed list of all filings and news releases. Also visit www.montello.com for ongoing updates & have your name included on our mailing list. See http://www.pinnacledigest.com/company/meo.ca.

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."

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