Montana Oil and Gas 2005 Outlook
Now that we have moved through 2004 and into a New Year, I am pleased to say that the management of Montana Oil & Gas (http://www.montanaoil.com) is ready to move the company decisively forward. I believe that we should see incredible results and value in the year to come. I further believe that your timing as an investor with this company is at its most crucial moment. Please let me take a minute or two of your time to explain a few timely and important points.
Montana Oil & Gas is a company that has in its first year of existence delivered a producing well named 'West Lock' after the area in which it is located. As most of you know Montana's advisory board said that they would hit gas, though they weren't able to predict at the time how much gas they would hit. On September 30, 2004 Montana Oil & Gas was pleased to announce the spudding of that well and on October 4, 2004 they announced it was a hit. Their first drill was a major success that exceeded everyone's expectations. The tie-in of this well is planned to be completed by the end of January, 2005. This will put Montana into revenues of at least $270,000 annually. These numbers are based on the well flowing at a bare minimum rate of 500,000 cubic feet per day. It is important to keep in mind however that this well has the potential of producing gas up to a range of 6 million cubic feet per day. With a gas flow of that dimension, revenue to Montana Oil & Gas would be approximately $3.2 million annually.
Building on this success, Montana took another bold but sure step and announced on November 12, 2004 that it was also commencing exploration in Sylvan Lake Alberta. To those who do not know this area it is said that Sylvan Lake and the Red Deer area are the heart of Alberta's most concentrated oil and gas reserves. This section of Alberta has been producing oil and gas steadily since 1958 and shows no sign of stopping, in fact Shell Oil has recently discovered gigantic new reserves in the area. It stands to reason that this is why all of the majors are in this area drilling and producing oil and gas such as Talisman, Gulf Oil, and Shell Oil. To date Montana has received its lease license to move forward and commence drilling preparations. We should be hearing of a spud date in the next week or two. Should this drill be successful the company immediately plans to drill 5 to 6 more wells in this area. This puts the revenues at approximately $800,000 per well.
Also it is my understanding that management is taking the necessary steps to move Montana Oil & Gas up to a more senior board which will add to the Company's prestige and reputation.
Having been very close to this deal it is of my opinion that investors looking for that one special company will find it in Montana Oil & Gas (MOGI). Please take the time and pay very close attention to the facts that have been presented. When dealing with companies like this, obviously your timing is very important. Whether you pick up only 500 shares or 50,000 shares, let's start making you money with Montana Oil & Gas.
Jason Ashdown
Senior Editor
Emerging Stock Report
Contact Info: Phone: 1 800 585 8762
Email: Jason@emergingstockreport.com
Web Address: www.emergingstockreport.com
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