TSX-V SYMBOL: MTZ
CALGARY, March 22, 2012 /CNW/ - Montana Exploration Corp. ("MTZ" or the "Company") is pleased to announce that the Company has entered into a Farm Out and Participation Agreement with a Denver-based private company which has made a staged commitment of approximately $10 million to earn a 50% interest in 110,000 net acres of the Company's lands in Montana. Our new partner is supported by significant private equity and adds a team of exploration and production professionals. The objective is to extend the proven Shaunavon Oil trend from Southern Saskatchewan across the company's Montana lands. As a result of the Farm Out and Participation Agreement, MTZ's 390,000 gross, 270,000 net acres in Montana will have significant value.
MTZ has identified multiple oil targets in five play types over a large acreage base offsetting existing production in the Upper and Lower Shaunavon. The participant will make a $6.7 million staged cash payment to MTZ and will pay $1.5 million to shoot 25 square miles of 3D seismic and will commit $2.0 million towards two initial wells to identify and pursue commercial production in the Upper and Lower Shaunavon.
MTZ's Shaunavon Oil play includes drill ready locations offsetting horizontal development drilling by other operators in the Lower Shaunavon near Bowes field and additional structural leads outlined by the Company's proprietary 2D seismic control for both the Upper and Lower Shaunavon. Also identified on MTZ leased lands with the 2D seismic is a potentially large Shaunavon channel play.
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 "propose", "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 Company entering into agreement with Rioco amending and extending the credit facility.
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.
For further information:
Don Foulkes, President
Telephone: (403) 265 9091 (ext 248)
Fax: (403) 265 9021
Charles Selby, Chairman & CEO
Telephone: (403) 265 9091 (ext 247)
Fax: (403) 265 9021