Montello closes sale of majority of Pincher interests Montello Resources Ltd (C:MEO)
Shares Issued 199,325,406
Monday August 12 2013 - News Release
Mr. Peter Brown reports
MONTELLO ANNOUNCES AN UPDATE ON ITS PINCHER CREEK ASSET
An Alberta limited liability partnership has completed the purchase of the majority interest in Montello Resources Ltd.'s Pincher Creek property from the previous operator and the transfer of operatorship to general partner has been finalized.
Montello anticipates that this will allow the Pincher Creek property to be developed and brought into production during the fourth quarter of 2013. In addition, Montello anticipates receiving revenues during the same fourth quarter and expects further development of additional wells before the end of 2013.
As previously announced, Montello entered into a purchase and sale agreement on Nov. 15, 2012, whereby the company sold a 10-per-cent working interest in the Pincher Creek project for $575,000 to a private company. The funds from the 10-per-cent sale will be used for ongoing operational costs, reinstatement costs and Montello's portion of costs related to building of the necessary pipeline to bring the 1-11 discovery well into production. Once that well is online, the operator will move on to the next location.
Montello would like to thank all stakeholders for their understanding and patience for such a long gap since our last news release. Management wanted to ensure certain key steps were actually finalized before making any premature announcements. Once again, Montello thanks its shareholders for their patience and support through these difficult times.