Montana Exploration Corp. announced that it has entered into an agreement under which the company will drill and operate five Shaunavon oil well prospects that were delineated using the company's extensive 3D Seismic on its directly held and option lands comprising approximately 447,000 acres (or 689 square miles) in Blaine & Hill Counties, Montana. Under the terms of the farmout agreement, Rioco will pay 100% of the costs associated with the drilling of each well, plus a prospect identification fee for each well. In exchange, Rioco will earn a 75% working interest in each of the drilled wells. After the five-well project has paid out the costs to drill, complete, equip or abandon all five wells, Rioco's working interest in each well will reduce to 50%.