Canadian Oil

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Montello Resources (TSX.V:MEO) - Drilling Down The Devil’s Throat

By Eric Pratt

Montello Resources (TSX.V:MEO – www.montello.com), an oil and gas exploration firm based in Calgary, Alberta, potentially has a very big problem on its hands. It’s the kind of problem most junior explorers only wish they had.

The company is in the last leg of drilling on the John Bowen #2 test well in Tennessee, just over a mile from the site of the now notorious Pryor Oil blowout, after a drill penetrated a formation at 2,400 feet that was under an estimated 2200 pounds per square inch of pressure. The resulting explosion of condensates blew the derrick into the air, and by the time the EPA showed up to take control of the scene, the gusher had flowed at rates of up to 12,000 boe a day!

Pryor Oil was all but annihilated by the legal and cleanup costs, and for years afterwards, the Tennessee Oil and Gas Authority banned any further exploration in the region.

That was over 5 years ago, and it has taken that long for Montello president Bill Cawker to get the company’s ducks in a row to take another shot at the monster formation.

When it came to putting a property package together in Tennessee, fractured ownership and obtuse property configurations were enough to alienate all the usual American Big Oil suspects for a well with potential of the John Bowen.

The rest is here: http://www.huliq.com/34222/montello-resources-tsx-v-meo-drilling-down-the-devil-s-throat