Montana drilling update

TSX-V SYMBOL: MTZ

CALGARY, Sept. 7, 2011 /CNW/ - Montana Exploration Corp. (MTZ) announces that the Corporation will drill the 7-9-29N-23W location on the Fort Belknap Reservation MT in October in conjunction with its industry partners targeting gas in the Bowdoin sand and the Eagle FM. While the Company's primary focus remains on Bakken and Shaunavon oil prospects there is considerable natural gas potential throughout MTZ's 270,000 net acre position in Montana and MTZ and its partners propose to follow up on a recent Bowdoin discovery.  MTZ pays 12% working interest for 30% in this 2200´ test.

The Eagle structural trap is potentially large, up to 20 BCF, in an area with better quality sands than the presently producing Eagle wells 8 miles to the east on this 200,000 acre Reservation. The underlying Bowdoin sand prospect is a further development of gas encountered in two recent Bakken tests. These wells both encountered significant gas shows while drilling through the Bowdoin Formation, a broad regional gas play which has produced for many years at the Bowdoin Dome, to the east of our block. MTZ and partners elected to perforate this zone in the 12B-26 well and flow tested the well at sufficient rates and shut in pressure to justify future facturing of the well. Analysis of other wells nearby indicates a regional Bowdoin play which could have a recoverable gas covering a large areal extent. These types of wells, although each only expected to produce at 50 to 100 mcf/d, initially, produce for decades and will eventually be an attractive economic opportunity as gas prices recover particularly in combination with MTZ's natural gas production from the Eagle formation. Montana Exploration already has the extensive infrastructure in place to exploit this potential gas accumulation.

The Company is engaged in the acquisition, exploitation and production of crude oil and natural gas reserves in Western Canada and Montana. For more information on the Company, visit www.altacanada.com.

   

NEITHER THE 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.

Caution Regarding Forward Looking Information

This press release contains forward-looking statements within the meaning of securities laws, including the "safe harbour" provisions of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "intend", "forecast", "target", "project", "guidance", "may", "will", "should", "could", "estimate", "predict" or similar words suggesting future outcomes or language suggesting an outlook. Forward-looking statements in this press release include, but are not limited to, the drilling of three additional wells, the anticipated date the first well will spud, anticipated drilling costs, the use of proceeds from the financing, the proposed name change and change of ticker symbol and the anticipated consolidation.

Forward-looking statements and information contained in this press release are based on our current beliefs as well as assumptions made by, and information currently available to, us. Although we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect.

By their very nature, the forward-looking statements included in this press release involve inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, the volatility of oil and gas prices; production and development costs and capital expenditures; the imprecision of reserve estimates and estimates of recoverable quantities of oil, natural gas and liquids; the Company's ability to replace and expand oil and gas reserves; environmental claims and liabilities; incorrect assessments of value when making acquisitions; increases in debt service charges; the loss of key personnel; the marketability of production; defaults by third party operators; unforeseen title defects; fluctuations in foreign currency and exchange rates; inadequate insurance coverage; compliance with environmental laws and regulations; changes in tax and royalty laws; the Company's ability to access external sources of debt and equity capital; and the Company's ability to obtain equipment in a timely manner to carry out development activities. Readers are cautioned that the foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to the Company, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Furthermore, the forward-looking statements contained in this press release are made as of the date of this document and we do 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 required by applicable law. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

 

SOURCE Montana Exploration Corp.

For further information:

  Charles Selby, Executive Chairman Don Foulkes, President & CEO
Telephone: (403) 265 9091 (ext 247) (403) 265 9091 (ext 248)
Fax: (403) 262 8866 (403) 265 9021
Email: info@altacanada.com info@altacanada.com

 


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