SOURCE: Westmont Resources, Inc.
February 22, 2011 08:30 ET
Westmont Resources Completes Acquisition of Marcellus Gas Leaseholds
BELLEVUE, WA--(Marketwire - February 22, 2011) - Westmont Resources Inc. ("Westmont") (OTCQB: WMNS) (PINKSHEETS: WMNS) today announces the completion of a previously announced Marcellus shale play acquisition located in the southwest tier of Pennsylvania. The acquisition consists of approximately 233 net acres of leasehold in Westmoreland County and includes 8 producing wells of approximately 280 Mcf per day (gross) of natural gas, 145 net acres held by production, a six-inch steel pipe gathering system, and a saltwater disposal well.
Glenn McQuiston, Westmont's President, stated, "With the completion of this acquisition, Westmont has taken the first step in its plans to acquire approximately 3,650 net acres of Marcellus leaseholds. Along with today's acquisition we are currently under contract for two additional properties representing another 3,400 net acres of leasehold in the Marcellus. This acquisition is a very positive step toward realizing our strategy of positioning the company for long-term reserve and production growth. At the same time the current production of this first acreage both substantially reduces the risks and provides a strong foundation for expansion into the remainder of our target properties. On the newly acquired acreage we plan to increase the depth of the existing wells, demonstrate the long-term potential of this acreage and follow on with additional wells."
Westmont's portfolio, in addition to this most recent acquisition in the Pennsylvania Marcellus Shale region, includes the pending development in the Chattanooga Shale region in northern Tennessee with 92 existing wells, 1,800 lease acres with 60 existing wells in Pennsylvania, and an additional 1,650 lease acres with 60 existing wells in West Virginia.
"Our specialty is applying cutting-edge technology in order to 'wring additional value from' long-lived, low risk natural gas and oil properties -- to squeeze more oil out of mature basins. These new Pennsylvania assets are excellent fits with our existing core areas and will further expand our portfolio," added McQuiston.
About Westmont Resources
Westmont Resources is an independent natural resource and development company headquartered in Bellevue, Washington, with principal operations in the United States. Westmont's business model emphasizes the acquisition and operation of existing producing assets, in the oil and gas industry. As new technologies expand both the exploration possibilities and production of oil and gas in the face of ever-rising demand, obtaining peak efficiency and production from existing aging wells becomes increasingly profitable. Westmont Resources is committed to significant growth as it pursues its strategy to combine and consolidate assets and companies in the oil and natural gas production and services sectors. For more information about Westmont Resources Inc, visit the company's website at www.westmontresources.com
Safe Harbor Statement
This press release contains forward-looking statements regarding Westmont Resources Inc within the meaning of Section 27A of the Securities Act of 1933 as amended, as such, may involve risks and uncertainties. Such statements are based on management's current expectations and cannot be guaranteed. The forward-looking statements discussed in this release may not occur and actual results could differ materially as a result of known and unknown risk factors affecting Westmont Resources Inc. Forward-looking statements speak only as of the date on which they are made and Westmont Resources Inc undertakes no obligation to publicly revise any forward-looking statement based on the result of new information, future events, or otherwise.