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| | Thu Sep 17, 2009
President's Message for September 17, 2009
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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
I hope everyone has had an enjoyable and productive summer.
As you can imagine we receive numerous questions and comments from shareholders and other interested investors with regard to the operations of Montello. The prevailing comment is that it appears nothing is happening. The purpose of this message is to relay to everyone that the situation is quite the opposite.
As we reorganize the Company the current directors and officers continue to define the new direction going forward. We are doing this by giving consideration to market conditions, the available skills, the remaining assets and by identifying existing and emerging opportunities.
Corporate and Administrative Matters
In order to build a successful company and create value for our shareholders we must first establish a solid foundation. Junior public companies typically have few staff and thus require an efficient and lean infrastructure.
The Company will maintain a small operations office in Calgary where the CEO will manage operations and a small corporate office in Vancouver where the CFO will manage all aspects of corporate administration and financial as well as regulatory reporting. We are currently developing an efficient financial reporting system to ensure timely disclosure.
In order to maintain the requirements of a public company, we will update and maintain all Corporate Governance policies that are suitable for an organization of this size. We also continue to develop our shareholder communication system.
As we work through the year-end audit we are re-designing our accounting and financial reporting systems. Regulatory Matters
A great deal of time has been spent these past months addressing queries raised by the Alberta Securities Commission (ASC) with regard to the operations in Tennessee and the flow of information and related correspondence. This has finally been completed. The company submitted its last collection of documents to the ASC on the 1st of September 2009.
This was in addition to the time spent addressing the "Continuous Disclosure" matter with the ASC. As announced on 29 July 2009, following a lengthy process of getting the Company re-instated for trading, meeting the disclosure requirements and providing responses to the ASC queries, the matter was closed.
Oil and Gas Operations -- Alberta
The company has now succeeded in selling both its non-operated and operated properties in the Mulligan area of northwest Alberta, thus removing more liabilities and cleaning up the balance sheet for a fresh start.
Pincher Creek is an exciting play with significant income producing potential. Unfortunately, there has been a serious lack of communication among the partners, especially by those in the control position. Previously Montello had reported that it was close to production, but since then many factors have been at work to prevent that from happening. I can report the following facts:
I went to see ranchers close to the proposed pipeline location in late July and early August and was told by them that no one has spoken to the land owners "since the ERCB hearing in January". In a discussion with the operator of the Pincher Creek plant I was told that no one from the operating group had any communication with them whatsoever for over a year. I found this all to be quite surprising.
Subsequent to these visits, it was reported that Pennine (the Operator) had entered into an agreement with a private company to sell its Pincher Creek assets essentially for the same amount as the related debt. None of the major partners were ever formally notified that this deal was pending. In the past few weeks we have discovered that an individual involved in the partnership group has been negotiating with Pennine privately while the rest of the partners have been waiting for news from the operator. The company has not received an AFE from the operator nor does it believe a "Right of Entry" document has been signed with the land owners.
The company is extremely concerned that all the partners may have been subjected to an enormous loss of potential revenue due to the lack of activity and the lack of communication to the partners from the operator.
After consultation with company counsel Montello will be calling a partners' meeting as soon as possible. Oil and Gas Operations -- Tennessee
Montello was successful in disposing of the John Bowen "Farm" and surface lands while maintaining all of the mineral rights. In fact, the mineral rights for the John Bowen area have just been extended for a further year.
Montello has also closed its office in Tennessee, while maintaining the services of a local operator.
In addition, Montello has been performing some investigative work on the Morgan Highpoint #3 well with the intention of bringing it into production. The company intends to "skid" the pumpjack, lay down the rods and tubing and examine for paraffin build up. A camera will then be run into the wellbore to ascertain exactly where the oil is potentially coming from and match it to the logs. The pumping assembly will then be put back in place and an inhibitor added to the wellbore and production attempted.
The Road Ahead
We all know we are still in a difficult market, so to preserve cash and maximize revenue we intend to post a farm-out package on the website before the end of September for some of our holdings in Tennessee. This farm-out package will be available to the general public.
As we continue to reorganize the Company and determine its direction, we have been evaluating our options with regard to financing and capital structure. We expect to finalize our plans in this regard in the coming months and at the upcoming Annual General Meeting.
We all want Montello to be successful so that we may realize value on our investment. To do so we would like to see existing and future investors work together to move the company forward in a positive manner.
Looking forward to the future!
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 Investor Relations' 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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Disclaimer: The particulars contained herein were obtained by sources believed to be reliable but may contain forward looking statements and may be incomplete and therefore are not guaranteed by Montello Resources Ltd. or its US Operation subsidiary. Opinions expressed herein do not necessarily reflect those of Montello Resources Ltd personnel. Any comments provided above should not be construed as a solicitation offer to buy or sell any securities mentioned herein. Any Securities possibly discussed may not necessarily be suitable to all types of investors, so it is important to do due diligence and speak to a qualified Investment Advisor re your particular situation.We seek Safe Harbour.
The above as well as various narratives on this web site may contain certain forward-looking statements, including management's assessment of future plans and 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. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Corporation's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Corporation will derive there from. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Corporation or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the 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 any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws."
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