About Pincher CreekThere is an update in leading partner Montello's news release of Oct. 15th of a short gas pipeline (258 metre) tie in line. This does not effect oil production as Marc stated to me that the oil can be stored in tanks. The gas tie in to Shell's gas line crosses over properties which they are in negotiations with and I believe has one holdout. Goldnev holds a 12% working interest in the well and surrounding lands and a 20% interest in a deep gas well planned to be drilled next year that is right beside this well being worked over. Goldnev believes there is opportunity for several new wells in that area.
Montello's (Goldnev's partner) news release will up date you on the progress. From Montello's Oct.15 news release:
"CALGARY, ALBERTA--(Marketwire - Oct. 15, 2008) - Montello Resources Ltd. ("Montello") (TSX VENTURE:MEO) is pleased to follow up on the news release of yesterday provided by Pennine Petroleum Corp., our operator at Pincher Creek, Alberta which stated that equipment has been mobilized to initiate pump testing of the Brown Sand reservoir at the 100/01-11-004-29W4M discovery well.
Although the operator estimated the work program to take 14 days, progress to date has been encouraging. The Brown Sand reservoir will soon be placed on pump to establish stabilized daily rates of oil flow. The operator has stated in their daily reports of October 12th and 13th to Montello, that approximately 500 barrels of clean oil has already been produced.
The Brown Sand was stimulated in October 2007, with flowing and swabbing production at indicated rates of 233 barrels per day of oil (43 API) and minor solution natural gas. The well bore was subsequently configured to production test the upper Cadomin formation reservoir. According to our operator, prior to sanding off, the Cadomin was producing an equivalent of 290 barrels per day fluid, 82-per-cent, 43-API oil with a steadily decreasing load fracture fluid cut to 18 per cent and 300 thousand cubic feet of sweet solution natural gas.
Subsequent to a mandated ERCB (Energy Resources Conservation Board) hearing to address the placement of a 258-metre sweet solution natural gas conservation pipeline, a commingling application will be made to the relevant authorities to produce both the Brown Sand and Cadomin formation reservoirs. The hearing initially scheduled for September 30th was re-set for November 26th and 27th, to discuss the tie in of the well directly into an existing system feeding Shell's Waterton gas plant. Issues such as over land reclamation and compensation rights for landowners will be discussed and clarified and thus are expected to not have an impact on production testing in the area.
Montello has a 25% interest in the 1-11-4-29W4 well. For further information, see our news releases of September 27 and October 4, 2007 filed on www.sedar.com. The Pincher Creek Field has been one of the most prolific fields in Alberta having produced some 600 BCF of gas and over 1 million barrels of associated liquids for over 50 years.
ON BEHALF OF THE BOARD OF DIRECTORS
Montello Resources Ltd."