NI 51-101 Technical Review of Oil and Gas leases in Montana

NI 51-101 Technical Review of Oil and Gas leases in Montana

Covenant Resources Ltd. (CVA - CNSX),(the "Company") is pleased to announce the public release of a Technical Review for its recently acquired oil and gas leases in the Sweetgrass Arch area of Montana, consisting of 41,500 net acres in Toole and Pondera Counties.

The report prepared by MHA Petroleum Consultants LLC ("MHA"), an independent qualified reserves evaluator, meets National Instrument 51-101 disclosure standards and is available on SEDAR, at www.sedar.com.

The Sweetgrass Arch of Northwest Montana is part of an active oil and gas district (Alberta Basin). The area surrounding the Company's leases has produced economic oil and gas pools, as well as a series of new discoveries, and is presently being actively explored by Texas-based Quicksilver Resources, Newfield Exploration Company and Rosetta Resources, among others. Recent activity in the region reflects continued strong interest in the Bakken Shale Oil Field covering parts of Montana, North Dakota and Saskatchewan. The Bakken Formation hosts one of the largest contiguous deposits of oil and natural gas in the US, according to the US Geological Survey.

The Company anticipates a 2010-2011 work program with an estimated budget of $2.5-$3 million to explore its leases. The proposed program would include a minimum 8-well drill program, to be based on newly acquired seismic data and directed at depths considered mostly favourable to host oil resources. The Company will continue to seek and evaluate additional North American oil and gas properties with production potential in order to achieve its goal of becoming a mid-tier oil and gas company.

The common shares of the Company trade on the CNSX under the trading symbol "CVA".

The CNSX does not accept responsibility for the adequacy or accuracy of this news release.

For more information, please refer to the Company's engineering report available on SEDAR (www.sedar.com).

For further information contact:
Frank Port
President, Chief Executive Officer, and Director
Tel: 604-805-9999
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.covenantresources.com




Forward Looking Statements
This press release contains forward-looking statements relating to the operational and exploration activities for the Company and other statements. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, among other things, the lack of additional financing to fund the Company's exploration activities and continued operations, the state of the economy in general and capital markets in particular; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations and future exploration activities; and other factors, many of which are beyond the control of the Company.
The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.