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| | Montello Operations Field Emergency Line 1-866-379-3960 Montello Resources Ltd., www.montello.com is a publicly traded company listed on the TSX Venture Exchange trading under the symbol (TSX-V MEO). Management's goal is to pursue opportunities for high impact oil and gas exploration and recompletion projects in the Appalachian Basin in Tennessee as well as search for potential high impact exploration drilling opportunities back home in the Province of Alberta, Canada's oil and gas heartland.. For further information or to be put on our Preferred Contact Mailing List please contact us at . President's Message For January 20, 2010 This feature is anticipated to be a regular addition to the website. CALGARY, ALBERTA - Montello Resources Ltd (TSX Venture Exchange: MEO) is pleased to provide the following President's Message. President's Message I hope you all have had a very enjoyable festive season and you and your families keep well in 2010. I would like to take this opportunity to bring you up to date with the company's activities over the last six weeks or so. Corporate and Administrative Matters From a corporate point of view, as in recent past new releases, we have delayed the filing of the audit and the annual engineering report due to a complete overhaul of our financial reporting responsibilities. Previously we had been under a continuous financial disclosure watch from the Alberta Securities Commission and to avoid any further problems a new Chief Financial Officer was appointed and the process of "righting the ship" began. We anticipate filing our annual audit and engineering within the next two weeks. Oil and Gas Operations - Tennessee Operationally we have, as news released, sold out of our position in the Mulligan area. These projects were being run with a negative netback, from Montello's point of view, and it was decided to be unwise to keep these properties. We have therefore focused on the Tennessee property and the property in the Pincher Creek area of Alberta. In October a team was sent down to Tennessee to examine the Morgan Highpoint #3 well for economic viability. It was decided that this well was potentially economic, however a 500 plus foot section of open hole needed to be fractured. Before that operation is to take place we intend to do a "fluid shot" pull the pump and reposition it on bottom. We are currently arranging services to do just that. After this operation if the well will flow without opening or fracturing the formation we will continue to produce this well. It is thought however that stimulation will be required. If this is the case we will put a programme together to do so on all of our wells in Tennessee and will need to raise monies to finance this operation. In terms of the Chattanooga Shales we are currently reviewing a petrophysical study for our wells and the area prior to potentially farming out this play. Oil and Gas Operations - Alberta In Pincher Creek we can report, as news released, that Pennine have replied to our statement of claim with their own Statement of Defence and the lawsuit continues. On the operational front, we have been in continual contact with the land owners and they have informed us that they will accept no funds from Pennine or anyone until it is fully understood who is to operate the well. Montello is a large partner in this well at 25% working interest and has not been approached by the operator or anyone associated with the property to ascertain if any progress can be made. Part of our lawsuit is to have Montello novated into the well. Once this is completed, unless any further progress has been made, we would be issuing an independent operations notice to bring on this well. We are aware, as are a number of you, that a private company is in the process of attempting to close a deal with Pennine on its major asset. We are unaware officially of the name and the principals of this "privco" but believe it to be made up of insiders that potentially could be doing a disservice to their current shareholders. We will keep you informed. The Road Ahead In order for Montello to continue to exploit its assets it will be attempting a financing in the new year. The TSX has informed the company that the minimum price it can finance at is $0.05. With this being the case the company may be forced to seek a partner or other forms of financing. Peter Brown, President ON BEHALF OF THE BOARD OF DIRECTORS "Peter C. Brown" Peter C .Brown President-CEO-Chairman For further information about this announcement and about Montello, please contact Corporate Communications' Greg Tweed at . Prospective and current shareholders are invited to join the company's official investment forum at http://www.pinnacledigest.com/company/meo:ca The online 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. Visit www.montello.com for ongoing updates & have your name included on our mailing list. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. About Montello Management's goal is to pursue opportunities for high impact oil and gas exploration and recompletion projects in the Appalachian Basin in Tennessee as well as search for potential high impact exploration drilling opportunities back home in the Province of Alberta, Canada's oil and gas heartland. Forward-Looking Information This document may contain "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). These forward-looking statements are made as of the date of this document and Montello Resources Ltd. (the "Company") does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation. Forward-looking statements relate to future events or future performance and reflect Company management's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements. | | | | | |
| ©2005 Montello Resources Ltd. All Rights Reserved. | Disclaimer | |||||||
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