Montana Exploration Corp. announced that it has entered into an agreement (Farm-out Agreement) with a private US-based family office group (Farmee) pursuant to which the Farmee will fund up to $20 million in drilling costs in the Company's Montana oil and gas prospects. Funds committed by the Farmee under the Farm-out Agreement will be applied primarily to drill new wells following up on the success of the Company's recently completed five well Shaunavon oil drilling program with Rioco Ltd. and to meet Montana Exploration's commitment to drill 10 wells (including a minimum of six gas wells) on the Company's farm-in acreage with a large Montana-based utility. Pursuant to the terms of the Farm-out Agreement, the Farmee has committed a minimum of $5 million for the first stage of a potential four stage drilling program. $5 million must be invested by the Farmee in each stage to earn 12.5% of the Company's pre-farmout working interests, excluding wells drilled and facilities in place at the effective date of the Participation, and subject to the rights of the Utility and the farm-in rights of Rioco Ltd. Determined on a drilled well by well basis, the Farmee will earn 100% of Montana Exploration's net interest prior to payout and 50% after payout, subject to Montana Exploration's right to participate for 25% of its original net interest in each well. Montana Exploration will be the operator subject to the direction of a joint operating committee of Montana Exploration and the Farmee.