Montello Updates Pinch Creek Activity

Montello Resources Ltd. has received an activity update from operator Pennine Petroleum Corp., on the new discovery at Pennine Pinch CK 100/01-11-004-29W4M. Their engineering team is currently evaluating various down-hole production schemes to place the Cadomin formation onto production, including the handling of associated natural gas.

This includes the selection of condensate lift systems and gas tie-in points. The current plan is to initially produce the Cadomin formation hydrocarbons so as to establish optimal production rates. Examination of data collected during the Brown Sand completion will be investigated with a view to possibly commingling both zones in the future. Initiation of continuous production is anticipated in November 2007.

Earlier in October, Pennine applied to the Alberta Energy and Utilities Board (EUB) for a license to drill the Pennine Pinch CK 6-12-4-29W4M well, which will test the Rundle formation to a total depth of 3,880 meters. In addition this well will also penetrate the continuation of the recent condensate discoveries at the Pennine Pinch CK 1-11-4-29W4M re-completion project.

Geological data indicates that this well may encounter the same pools as tested in the discovery well, in a structurally up dip position. This proposed well is also a structurally up dip offset of the 3-11-4-29W4 well that was drilled by Gulf Canada and produced significant gas since the 1970s.

Montello has an option that can be exercised within 45 days of notification, to participate as to a minimum of 25% Pennine's interest in the drilling, completion or abandonment of the proposed deep Rundle Test Well to be drilled at the location of 6-12-4-29W4M4. Pennine again will be the Operator of the Rundle Prospect.