TSX-V SYMBOL: MTZ
CALGARY, April 20, 2016 /CNW/ - Montana Exploration
Corp. ("MTZ") announces that the Company's 2015 financial
statements, MD&A and Notes are available online at our website
www.montanaexplorationcorp.com, via SEDAR (www.sedar.com) or from
the Company.
During 2015, MTZ set the stage for active growth despite
weakness in commodity prices. We completed three significant
transactions providing some additional capital to support our
business, materially reducing our indebtedness, consolidating our
land positions and significantly enhancing both our prospective
lands and our associated seismic data base focused upon development
and exploration prospects in the Shaunavon.
- MTZ completed a business combination with Gale Force Petroleum
Inc. in conjunction with the conversion to equity of a substantial
component of the Company's debt. The transaction provided the
Company with a modest amount of additional capital to support
operations during 2015.
- MTZ completed an acquisition of the properties held by a former
joint venture partner for a combination of cash and shares
restoring MTZ to essentially 100% working interest in its core
holdings in the Montana Shaunavon.
- Late in the year, MTZ entered into a farm-in transaction with a
large US-based Utility that materially increased MTZ's access to
land in both the Shaunavon play
and in long-term gas prospects and gave MTZ access to a significant
additional 3D data base. The farm-in has a number of attractive
elements including very reasonable long-term earning terms and a
requirement for the Utility to pay for tie-in of new commercial gas
wells that in turn will support the Utility's gas distribution and
power businesses.
MTZ now has a land base comprised of approximately 350,000 net
primarily contiguous acres in Blaine
County, Montana held directly and under option and access to
3D seismic covering approximately 315 square miles. MTZ's
technical team has focused on the integration of the large 3D and
2D seismic data base with available well control to generate a map
which thus far contains 16 prospects and almost 200 identified well
locations. MTZ's initial focus will be to drill Upper
Shaunavon targets on the Company's lands that offset historical
production from the Bowes and Rabbit Hill fields. Costs to
the casing point of vertical conventionally completed wells are
expected to be less than $375,000 and
type curves suggest initial production rates of up to 100 bopd for
new targets. Based upon reasonable risking, MTZ's program is
expected to be economic at current oil prices. Significant
potential also exists for natural gas prospects if gas prices
(AECO) recover above the $2.50 per
mcf level. The long term strategic value of the Company's
lands and commercial relationships has the potential to generate
significant shareholder value.
Management has moved forward with an active program to secure
drilling capital and/or a joint venture partner. The
scalability of the Company's prospects and the low associated cost
should make the financing or participation attractive even in this
lower price environment.
ABOUT MONTANA EXPLORATION CORP.
Montana Exploration Corp. is an oil and gas exploration and
production company focusing on the Shaunavon oil and Eagle gas opportunities
underlying its extensive land holdings and drilling rights in the
state of Montana. In the United States, the company operates
through its wholly-owned subsidiary, Montana Land & Exploration, Inc. The
company's common shares are listed on the TSX Venture Exchange
under the trading symbol "MTZ". Additional information regarding
the company is available at www.SEDAR.com or at
www.MontanaExplorationCorp.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Montana Exploration Corp.