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| | Tue Apr 13, 2010
Corporate update: President's Message
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| | CALGARY, ALBERTA - Montello Resources Ltd (TSX Venture Exchange: MEO) is pleased to provide the following President's Message.
President's Message
Since the last President's message a number of key events have occurred within Montello. Additionally, the company has been affected by the actions or lack of the same of its partners.
Financial Reporting
I am sure you are all aware that the company is currently cease traded due to the Company's inability to file its annual financials in a timely manner.
The main reason being the decisions by the company to completely overhaul the internal financial recording and reporting process including the change of auditor. During this process the Company has experienced delays from various sources in obtaining certain financial information related to the July 2009 fiscal year. Thankfully, at this time, all material financial information has been obtained and recorded. The Company's auditors are now finalizing their field work and are getting closer to completing the audit.
I can assure you that as much as this must have been and remains frustrating to the majority of you, it is even more so for the board and the company's officers. Needless to say, the decision to overhaul was not taken lightly. If this company was going to be in a position to refinance and to become a viable entity these steps were necessary.
I am pleased to report that we are now in the final throws of preparation prior to filing and an announcement will be made soon.
Oil and Gas Operations
In terms of our Tennessee property, we have renewed the necessary leases and completed our work at Morgan Highpoint #3 with the view that a large frac program was needed in the 500-foot open hole section. No work will be done until the company has filed its financials and raised the necessary funds to complete this operation.
Regarding Pincher Creek, as stated in the previous President's Message, Pennine filed a Statement of Defense and since that date we have been in contact with their counsel.
Although their legal representatives have stated a desire to resolve or settle the legal issues between us they have failed to perform the simple novation under CAPL that they are obliged to do and had indeed promised to do. Therefore, Montello has been left with no option other than to file a legal motion to force Pennine to novate Montello's interest and to have Pennine removed as operator.
The landowners have informed us that they are willing to allow Montello to operate on their lands but are wary of Pennine and its potential partners or purchasers. Montello has made countless approaches to Pennine to have them clarify the situation regarding the reported sale of their assets, but to no avail. Montello remains wary and skeptical of potential insider dealings and has asked for full transparency, again to no avail.
Going Forward
Upon completion of the audit and the subsequent filing of the same, Montello intends to help to take control of the situation in Pincher Creek, restructure and finance the company and proceed to develop and add to its core areas.
The Company is currently reviewing various financing options including the sale of a portion of its interest in Pincher Creek. The Company will announce full details upon completion of any financing initiatives.
Montello will disseminate a detailed news release with a date set for the AGM immediately after the filing of its financials.
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 info@montello.com. Prospective and current shareholders are invited to join the company's official investment forum at 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. |
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| | You can view the Next News Releases item: Thu May 6, 2010, Pincher Creek Update
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