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| |  In Tennessee, testing of the gas reservoir interval from 2,523 to 2,528 meters in the John Bowen #2 Test Well, was carried out between November 18, 2008 and December 4, 2008. It was perforated, fracced with nitrogen, acidized and swabbed for three days. The well was subsequently shut in for seven weeks and continually monitored for pressure buildup. The flowback and subsequent monitoring of the well has indicated that the gas zone tested is not commercial. The gas zone will be abandoned and Montello will meet with the other participants to review existing plans for further development on the prospective zones in the five wells that the group has drilled in the area in particular, the Chattanooga Shale. The Chattanooga Shale Play: is in its infancy with such companies as Atlas Energy (ATN), CNX Gas Company (CNX), Chesapeake Energy (CHK), Range Resources (RRC), GeoMet Inc. (GMET) actively pursuing mineral rights (drilling rights). The methodology is to drill vertical wells followed by new stimulation techniques such as fracturing and horizontal drilling. Given competition amongst participants, there is not a lot of public information available at this time, however, Atlas Energy who has a strong presence, has announced that it has accumulated 105,000 acres in Eastern Tennessee, with a large number of potential horizontal drilling locations and capability for significant production. CNX Gas Corporation (NYSE:CXG), Pittsburgh, PA (July 30, 2008), a leading gas producer by revenue in the Appalachian Basin, in a recent news release confirmed that they have drilled four additional Chattanooga Shale wells after a successful test well. Their release goes on to state as per the link below, that the first two wells are producing with two additional ones in various stages of clean up with "encouraging initial results". CNX have added an additional 100,000 net acres to bring their total net acreage to 235,000. The Chattanooga Shale Field is an organic, hydrocarbon rich shale found throughout Eastern Tennessee. It is an extension of the Appalachian Basin Devonian Shale, which is known to most as the Marcellus Shale and is believed to hold rich areas of natural gas. It is located in Eastern Tennessee, Northern Alabama, Southern Kentucky and Northeast Georgia. It is thought to be a source rock for the hydro-carbons produced from many of the conventional reservoirs in Tennessee. The shale thickness can vary to in excess of 200 feet. The following links on the Chattanooga Shale are the source for the overview above. They are independent 3rd party sources, which are believed to be reliable, but cannot be guaranteed for completeness or accuracy. http://oilshalegas.com/chattanoogashale.html http://www.rigzone.com/NEWS/article.asp?a_id=61128 http://www.scandoil.com/moxie-bm2/news/atlas-energy-reports-four-successful-horizontal-we.shtml http://phx.corporate-ir.net/phoenix.zhtml?c=193034&p=irol-newsArticle&ID=1181175&highlight=) ADDITIONAL LINKS OF INTEREST http://pubs.usgs.gov/fs/fs-009-03/FS-009-03-508.pdf http://pubs.usgs.gov/of/2008/1287/ http://pubs.usgs.gov/fs/fs-009-03/ http://www.priweb.org/ed/TFGuide/SE/se_fuels/fuel_pdfs/craton_fuels_se.pdf Assessment of Undiscovered Natural Gas Resources in Devonian Black Shales, Appalachian Basin, Eastern U.S.A. http://pubs.usgs.gov/of/2005/1268/2005-1268.pdf Evenick, J. C. and Hatcher, R. D., Jr., 2006, A new geologic model for the southern Appalachian basin and the continuation of the Rome trough southward and Sequatchie Valley thrust northward into northern Tennessee. Geological Society of America, Southeastern Section, Abstract with Programs, v. 38, no. 3, p. 10. http://gsa.confex.com/gsa/2006SE/finalprogram/abstract_102344.htm : Hatcher, R. D. Jr., Evenick, J. C., and Weyland, H. V., 2005, Pre-Chattanooga (Devonian-Mississippian black shale) structure and Nashville (Trenton) - Stones River (Black River) hydrocarbon production in Tennessee, Kentucky, and southwestern Virginia: American Association of Petroleum Geologists, Eastern Section Meeting Abstract, v. 89, p. 24. http://www.wvgs.wvnet.edu/www/esaapg05/docs/2005_ESAAPG_Program.pdf http://certmapper.cr.usgs.gov/data/noga95/prov67/text/prov67.pdf http://www.eia.doe.gov/pub/oil_gas/natural_gas/analysis_publications/maps/Appalach7_TN-KY_BOE.pdf (33"x 44" Actual Size) http://pubs.usgs.gov/imap/i-2530/i2530.pdf Map http://pubs.usgs.gov/imap/i-2768/i2768.pdf 46"x 30" Actual Size Map http://www.searchanddiscovery.net/documents/2004/hart/index.htm Evenick, J. C. and Hatcher, R. D., Jr., 2004, Identifying possible Pre-Chattanooga structures in the Cumberland Plateau of Kentucky and Tennessee using trend-surface residual anomaly maps : American Association of Petroleum Geologists, Eastern Section Meeting Abstract, v. 88, p. 77. http://www.searchanddiscovery.net/documents/abstracts/2004eastern/evenick.htm Evenick, J. C., Hatcher, R. D., Jr., Kah, L. C., Labotka, T. C., and Weyland, H. V., 2005, Hydrothermal dolomites in the southern Appalachian basin: Ideal reservoirs with inherent exploration difficulties : American Association of Petroleum Geologists, Abstract with Programs, p. A42. http://aapg.confex.com/aapg/cal2005/techprogram/A94957.htm Evenick, J. C., 2006, Potential subsurface structures and hydrocarbon reservoirs in the southern Appalachian basin beneath the Cumberland Plateau and eastern Highland Rim, Tennessee, Kentucky, and southwestern Virginia [Ph.D. dissertation]: Knoxville, University of Tennessee, 402 p. (PDF) http://etd.utk.edu/2006/EvenickJonathan/EvenickJonathan.pdf Evenick, J. C. and Hatcher, R. D., Jr., 2006, Exploration targets in the southern Appalachian basin : Geological Society of America, Southeastern Section, Abstract with Programs, v. 38, no. 3, p. 11. http://gsa.confex.com/gsa/2006SE/finalprogram/abstract_102355.htm http://web.utk.edu/~jevenick/#_ARTICLES_AND_PUBLICATIONS MAPS http://pubs.usgs.gov/imap/i-2530/i2530.pdf http://www.eia.doe.gov/pub/oil_gas/natural_gas/analysis_publications/maps/Appalach7_TN-KY_BOE.pdf (33"x 44" Actual Size) http://pubs.usgs.gov/imap/i-2768/i2768.pdf 46"x 30" Actual Size Assessment of Undiscovered Natural Gas Resources in Devonian Black Shales, Appalachian Basin, Eastern U.S.A. http://pubs.usgs.gov/of/2005/1268/2005-1268.pdf http://www.kyoilgas.org/ http://www.searchanddiscovery.net/documents/2004/hart/index.htm http://www.searchanddiscovery.net/documents/abstracts/2005eastern/index.htm http://web.utk.edu/~jevenick/#_ARTICLES_AND_PUBLICATIONS http://www.priweb.org/ed/TFGuide/SE/se_fuels/fuel_pdfs/craton_fuels_se.pdf http://certmapper.cr.usgs.gov/data/noga95/prov67/text/prov67.pdf http://pubs.usgs.gov/imap/i-2768/i2768.pdf LOCAL ARTICLES: READ ABOUT THE POTENTIAL OF THE APPALACHIAN BASIN OTHER ARTICLES: Mon Sep 10, 2007 "Drilling Down the Devil's Throat" Reader Advisory: 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."
Montello Resources Ltd. USA is the wholly owned subsidiary of Montello Resources Ltd. (TSXv:MEO), a publicly traded company on the TSX Venture Exchange, website is www.montello.com. The Company's focus is oil & gas exploration, in our core areas in Tennessee. Any particulars contained herein were obtained by sources believed to be reliable but are not guaranteed by Montello Resources Ltd. USA and may be incomplete. Montello Resources Ltd. (TSXv:MEO), is a publicly traded company listed on the TSX Venture Exchange. Our website is www.montello.com. The Company's primary focus is oil and gas exploration, production, secondary recovery in our core areas of Tennessee and in the Peace River Arch of North-western Alberta. The particulars contained herein were obtained by sources believed to be reliable but are not guaranteed by Montello Resources and may be incomplete. 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. | | | |
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