Montana Exploration Corp. (“Montana Exploration” or the “Company”) (TSXV: MTZ) today announced that the Company has, thus far, completed two of five vertical wells drilled and cased under the Company’s current five well Montana program. The two wells were perforated and successfully swab tested for oil production from the Upper Shaunavon. Production was 100% oil and rates are expected to meet or exceed type curves for historical Upper Shaunavon production in the region. Montana Exploration expects to bring these wells into commercial production within the next month and will report stabilized flow rates at that time. A third well is proposed to be perforated in the Lower Shaunavon next week. Of the five wells drilled, four have Eagle gas potential and three have several potential oil horizons. All were cased for completion. The five well drilling program targeted five potential Shaunavon prospects out of a current inventory of 27 prospects. The Company has also identified 23 gas prospects independent of the Eagle formation (that has produced 0.8 Tcf to date from the region – Montana Geological Service).
The results to date of the Company’s five well program are significant in that they support the geological and geophysical model developed by the Company based upon 315 square miles of 3D seismic, 700 miles of 2D seismic and well interpretation over 400,000 acres of land held by the Company directly and under option with a large Montana based utility. Montana Exploration has had exploration success in achieving oil production more than 7 miles from any significant historical production. The program has set up multi-zone development potential for new wells and exploration targets based upon geological and geophysical anomalies. Discussions are advanced with potential industry joint venture parties to pursue an expanded balanced program of drilling for both oil and natural gas.
ABOUT MONTANA EXPLORATION CORP.
Montana Exploration Corp. is an oil and gas exploration and production company focusing on the Shaunavon oil and Eagle gas opportunities underlying its extensive land holdings and drilling rights in the State of Montana. In the United States, the company operates through its wholly-owned subsidiary, Montana Land & Exploration, Inc. The Company’s common shares are listed on the TSX Venture Exchange under the trading symbol “MTZ”.