Montello closes sale of 10% of Pincher assets
Montello Resources Ltd (C:MEO)
Shares Issued 199,325,406
Tuesday November 20 2012 - News Release
Mr. Peter Brown reports
MONTELLO ANNOUNCES AN UPDATE ON ITS PINCHER CREEK ASSET AND RE-INSTATEMENT FOR TRADING
Montello Resources Ltd. on Nov. 15, 2012, completed and signed the purchase and sale agreement with FreshStart Energy, a private company, to sell a 10-per-cent interest in its Pincher Creek assets for the sum of $575,000.
Montello will retain a 15-per-cent working interest in the Pincher Creek property, with 5 per cent being held in trust for Tosca Capital Corp. The funds will be used to pay for its participation in the building of the necessary pipeline to finally bring the discovery well into production and then to move on to the next location.
The company also announces that a new operator will be taking over within 30 days and that a full joint venture billing will be presented to the company, thus providing the additional documentation required for the reinstatement application to the TSX Venture Exchange.
It has been a long road for Montello to finally make significant progress in getting this well on on-line. The lack of production from this well has had negative effects on the company, but Montello can now announce with some conviction that the road to revenue from the Pincher Creek property is imminent.
Montello once again thanks its shareholders for their patience and support through these difficult times.
We seek Safe Harbor.