CALGARY, Feb. 20, 2014 /CNW/ - Montana Exploration Corp. ("Montana" or the "Company") (TSXV:MTZ) announces the expiry of the Plan of Arrangement with Waldron Energy ("Waldron" or the "Corporation") and the renewed primary focus of the Company upon its substantially de-risked Shaunavon resource play in Montana. Montana undertook a shareholder approved combination with Waldron to support Montana's Shaunavon resource play and to enable the development of Waldron's assets under circumstances where Waldron had sought alternatives because of high debt. Montana sought replacement financing when the conditions attached to its original financing changed. Montana has raised significant funding for Waldron which has resulted in a material reduction of the indebtedness of Waldron, and provided technical advice on locations for the recompletion of wells and the provision of office premises. As a result, Montana is now the largest shareholder of Waldron holding 7,777,778 common shares. In accordance with a written undertaking to James Collins, the controlling shareholder of Montana, we will be seeking representation on Waldron's board. Montana will continue to evaluate its participation in Waldron, along with its co-investors, to determine whether to increase or dispose of its share position.
Montana has substantially reduced the risk of its Shaunavon resource play over the past 6 months through the drilling of 3 vertical test wells, the independent review of petrophysical and geological data by internationally recognized independent experts and the seismic mapping of a regional play in the Upper Shaunavon. Oil was encountered in both the Upper and Lower Shaunavon in the test wells that were drilled within a 45 square mile 3-D seismic program that was conducted on a portion of the Company's approximately 150,000 net acres on the Shaunavon trend in Montana. Montana intends to exploit both the Upper and Lower Shaunavon potential on its lands through drilling horizontal wells commencing with Upper Shaunavon offsets to its Andromeda test well.
The Shaunavon trend in Saskatchewan immediately to the North of Montana's acreage, has produced over 300 million barrels out of in excess 4 billion barrels of oil in place. Crescent Point Energy (CPG-T) has announced its plan to spend approximately $422 million of its 2014 budget, including drilling approximately 142 net wells, which will target the Lower and Upper Shaunavon resource play. Porosities, permeabilities and oil saturations on Montana's acreage are similar to those encountered in Shaunavon wells in Saskatchewan and in the Bowes Field located 10 miles south of Montana's current drilling.
About Montana Exploration Corp.
Montana is a Canadian junior oil and gas exploration and production company focusing on the Shaunavon oil opportunities underlying its extensive land holdings in the state of Montana. In the United States the company operates through its wholly owned subsidiary, Montana Land & Exploration, Inc. Montana's common shares are listed on the TSX Venture Exchange under the trading symbol "MTZ". Additional information regarding Montana is available under Montana's profile at www.sedar.com or at Montana's website, www.montanaexplorationcorp.com.
Forward Looking Statements
This press release contains statements that constitute "forward-looking information" or "forward-looking" statements" (collectively "forward-looking information") within the meaning of applicable securities legislation. 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. This forward-looking information includes, among others, the focus of the Company and other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance.
Various assumptions were used in drawing the conclusions or making the forecasts and projections contained in the forward-looking information contained in this press release.
Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Montana and described in the forward-looking information contained in this press release. Undue reliance should not be placed on forward-looking information.
The forward-looking statements and information contained in this press release are also affected by the risk factors, forward-looking statements and assumptions and uncertainties described in Montana's reports on file with applicable securities regulatory authorities and which may be accessed on its SEDAR profile at www.sedar.com. 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 Montana, 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 press release and Montana 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 required by applicable law. The forward-looking statements contained in this joint press release are expressly qualified by this cautionary statement.
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SOURCE: Montana Exploration Corp.
For further information:
For further information on Montana and the Arrangement, please contact:
Montana Exploration Corp.
Chairman and Chief Executive Officer
Telephone: (403) 265-9091
Telephone: (403) 265-9091