Montana Exploration Corp. has divested some of its Canadian oil and gas properties over the past several years to concentrate its activities on oil and gas exploration and development in the State of Montana.

Properties remaining in Canada include minor interests at Killam and Cardiff, Alberta and significant interests at Viking Kinsella, Alberta.

Cardiff

The Company owns an average of 42 percent interest in 6,080 acres at Cardiff and two wells that produce a net 200 mcfd.

Killam

Montana Exploration owns varying interests in 28,963 acres at Killam including an average working interest of 16.8 percent in about 8,300 acres and royalty interests ranging from 2.1 to 8.4 percent in other acreage. There are a total of 42 producing wells, netting 50 mcfd to the Company. Significant infill and stimulation potential exists on this property when gas prices improve.

Viking Kinsella

The Company has interests averaging 29 percent in 26,807 acres at Viking Kinsella, including over 38 producing wells, a 58.4 percent interest in a gas processing facility, and varying interests between 44.5 percent and 49.5 percent in an extensive gas gathering system.

As well as several Viking infill gas locations there are several recompletion and drilling opportunities to exploit a Basal Colorado gas play being pursued by others offsetting the acreage and an oil development opportunity to down-space the Sparky “O” oil pool and implement an enhanced recovery scheme.