TSX-V SYMBOL: MTZ
CALGARY, April 20, 2016 /CNW/ - Montana Exploration Corp. ("MTZ") announces that the Company's 2015 financial statements, MD&A and Notes are available online at our website www.montanaexplorationcorp.com, via SEDAR (www.sedar.com) or from the Company.
During 2015, MTZ set the stage for active growth despite weakness in commodity prices. We completed three significant transactions providing some additional capital to support our business, materially reducing our indebtedness, consolidating our land positions and significantly enhancing both our prospective lands and our associated seismic data base focused upon development and exploration prospects in the Shaunavon.
- MTZ completed a business combination with Gale Force Petroleum Inc. in conjunction with the conversion to equity of a substantial component of the Company's debt. The transaction provided the Company with a modest amount of additional capital to support operations during 2015.
- MTZ completed an acquisition of the properties held by a former joint venture partner for a combination of cash and shares restoring MTZ to essentially 100% working interest in its core holdings in the Montana Shaunavon.
- Late in the year, MTZ entered into a farm-in transaction with a large US-based Utility that materially increased MTZ's access to land in both the Shaunavon play and in long-term gas prospects and gave MTZ access to a significant additional 3D data base. The farm-in has a number of attractive elements including very reasonable long-term earning terms and a requirement for the Utility to pay for tie-in of new commercial gas wells that in turn will support the Utility's gas distribution and power businesses.
MTZ now has a land base comprised of approximately 350,000 net primarily contiguous acres in Blaine County, Montana held directly and under option and access to 3D seismic covering approximately 315 square miles. MTZ's technical team has focused on the integration of the large 3D and 2D seismic data base with available well control to generate a map which thus far contains 16 prospects and almost 200 identified well locations. MTZ's initial focus will be to drill Upper Shaunavon targets on the Company's lands that offset historical production from the Bowes and Rabbit Hill fields. Costs to the casing point of vertical conventionally completed wells are expected to be less than $375,000 and type curves suggest initial production rates of up to 100 bopd for new targets. Based upon reasonable risking, MTZ's program is expected to be economic at current oil prices. Significant potential also exists for natural gas prospects if gas prices (AECO) recover above the $2.50 per mcf level. The long term strategic value of the Company's lands and commercial relationships has the potential to generate significant shareholder value.
Management has moved forward with an active program to secure drilling capital and/or a joint venture partner. The scalability of the Company's prospects and the low associated cost should make the financing or participation attractive even in this lower price environment.
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". Additional information regarding the company is available at www.SEDAR.com or at www.MontanaExplorationCorp.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.
SOURCE Montana Exploration Corp.
For further information: about Montana Exploration, please contact: Charles Selby, Chairman and Chief Executive Officer or Donald Foulkes, President, by telephone at +1.403.265.9091 or by mail at 2300, 144 4th Ave. S.W., Calgary, Alberta T2P 3N4.