Vol. 36 - THE HUNT IS ON IN TENNESSEE: MONTELLO RESOURCES

Dear Member,

This week, we'd like to share a story with you. The story involves a great disaster and an even greater missed opportunity.

This story's origin began a little while ago, but everything involving today started in July of 2002 when a company by the name of Pryor Oil was drilling for oil on the Howard farm near Lancing, Tennessee. This region and the Tennessee Appalachians were very underdeveloped. Years later, state geologists would state that the Morgan County has more occurrences of over-pressure incidents than anywhere else in the state of Tennessee.

On July 19th 2002 Pryor Oil encountered extreme underground pressure at roughly 2400 feet. The well began gushing light gravity crude oil up to 750 barrels per hour. Pryor Oil unknowingly tapped into an unbelievable prolific oil formation.

After only 24 hours the well's flow rate was calculated at 12,000 barrels of oil. Pryor Oil was simply not ready for this. The immense pressure lifted their drill derrick right off the ground. On the second day July 20th a spark from a nearby truck ignited the oil which spread immediately to the well. Pryor personnel and volunteers worked ceaselessly for over 36 hours attempting to contain the incident but were forced to stand aside while oil spewing from the well burned in excess of $15,000.00 an hour. The Environment Protection Agency had to intervene after it quickly became a natural disaster. This incident is not forgotten in Tennessee and the Eastern United States and will forever be remembered as the infamous "Blowout Well".

Why did we tell you this tragic story?

Pryor Oil had its opportunity and failed. There was no way of knowing such a reserve lay beneath their Howard White #1 Well, but either way they had their chance and are now in legal battles. On a property that adjoins the Howard farm property, there is a company drilling 1 mile from the Howard White #1 Well. That company is Montello Resources (MEO:TSX-V) based out of Calgary, Alberta and that formation and resource is what they are aiming for; after viewing what took place in 2002, they have thoroughly prepared themselves.

We became familiar with Montello Resources over a month ago and could not wait to bring their story to you. In fact, we liked their story so much, we bought 200,000 shares ourselves at $0.14CDN per share (their current share price is $0.14CDN).We also know that management vended in their Mulligan Alberta assets at $0.13CDN per share and along with family, friends and associates participated in previous private placements at $0.13CDN per share.

When Montello won the rights to the historical Howard farm property they had to gain the confidence and respect of roughly a dozen representatives from eight state and federal agencies at a technical presentation in Knoxville. This took place in May of this year. Montello simply laid out their plans and showed them their world class personnel; personnel who have had extensive success bringing on similar high-pressure wells in geographical comparable regions. These areas include the Alberta Rocky Mountain Foothills and the Middle East. On July 20th 2007 Montello Resources was issued a permit to drill the Bowen #2 Well at its Morgan High Point Project, interestingly enough, exactly five years to the day for our readers who may be superstitious and believe it could be good luck.

On August 15th drilling began at their Bowen #2 Well. We believe our review and coverage of Montello could not have commenced at a more favorable time for our members. Their High Impact Drilling program is ongoing at the John Bowen #2 Well. The John Bowen #2 Test Well commenced on August 15th and is expected to take approximately 45 days or so to reach its basement target between 7,000 to 9,500 feet. It is using a technique known as under-balanced drilling to control the potential pressure. A significant update at their John Bowen #2 Test Well was announced on September 4th as casing complete with a down-hole deployment valve is being run to a total depth of 2,200 feet. We will be immediately updating our "News Room" and our members as to the details of further announcements and encourage you to additionally view 3rd party articles and reports posted on their Home Page at www.montello.com for a better understanding of their story. Montello's management is driven to succeed and is doing everything in their power to ensure the success of this drill program. Although there is great anticipation and focus on the development of this well, it's not everything that makes up this Calgary based junior oil and gas company.

Montello Resources is also involved in a deep re-completion of a Manville gas zone located on the Eastern flank of the Albertan Foothills within the Pincher Creek area. Management has stated that, "Montello is commencing its Alberta Exploration Program by farming in on a Mannville Re-completion to be started on or before August 31st." On September 5th it was announced that their Pincher Creek re-completion was officially underway as a rig was moved onto the Pennine Pincher Creek 01-004-29 W4M location on August 31, 2007. Montello will be perforating the Brown Sand, and if prudent the Manville Sand within the next week. This should take 15-20 days to conduct. Management has stated that this "Upper Zones Play" represents an opportunity to undertake immediate operations to obtain production and prove up additional target wells for revenue enhancement. We will be actively updating our review on this project and continue to await news from Tennessee.

Let's take a look at the oil and gas sector.

The value of crude oil rallied to a new all-time record of $80.20 a barrel yesterday as Hurricane Humberto rampaged through Texas and Louisiana, shutting oil shipping channels and three refineries.

The current rally in oil is due to a number of factors. The recent hurricane shut shipping channels and closed three refineries. The hurricanes will pass, but what is central to oil's increase is that the US Department of Energy continues to reveal that US crude inventories are falling by much more than expected. Inventories fell 7.1 million barrels in the week of Friday Sept 7. On top of falling supply, OPEC's decision this past Tuesday to pump an extra 500,000 barrels of oil per day from November on is thought to provide little relief to tightening market balances. With tensions continuing to rise in the Middle East, the United States cannot afford to rely on foreign oil supplies for much longer. Domestic oil must be achieved and used to sustain us in the long term. These are the main factors which make us confident in oil and gas companies, specifically junior oil and gas companies operating in North America.

In respect to Montello's John Bowen #2 Test Well, we know this drill program is quickly becoming one of the most anticipated in the country. Momentum is building as each foot drilled brings them closer to the basement target and possibly one of the region's deepest and complicated wells ever. After researching this company extensively we are proud to announce that Montello Resources is our current Featured Oil and Gas Company.

Montello Resources website: www.montello.com is one of the most detailed and informative public company websites we have come across. They are shareholder driven and no detail is too small and not brought to the attention of the retail shareholder. Montello's Photo Gallery gives readers a birds-eye view into the actual construction of their well site right through to the raising of their rig. It is very interesting for first timers to see.

Our coverage of Montello Resources will be extensive as their developments are now ours. Our review will be ongoing with detailed updates and opinions in respect to their two projects which are both approaching potential breakthroughs. Below are two supporting articles we found from our research on Montello, they should add to your research. Also feel free to visit Pryor Oil's website below, as it documents the infamous "Blowout Well".

www.pryoroil.com

All the best with your investments,

PinnacleDigest.com

This is a paid advertisement. This material is not an offer to sell or a solicitation of an offer to buy any securities.PinnacleDigest.com is an online financial newsletter focused on researching small-cap and large-cap public companies. Information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete. PinnacleDigest.com and its employees and affiliates are shareholders in Montello Resources at the time this report was written. Please read our Privacy Policy and Disclaimer for our full disclosure on Montello http://www.pinnacledigest.com/articles/privacy-policy-and-disclaimer