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MOUNTAINVIEW ENERGY LTD

PO Box 200

Cut Bank, MT 59427

E-Mail: mvw@bresnan.net

Web Site: www.mountainviewenergy.com

Phone: (406) 873-2235
Fax: (406) 873-2835 

NEWS RELEASE

December 15, 2011

MOUNTAINVIEW ENERGY LTD PROVIDES OPERATIONAL UPDATE – DRILLING AND FRACTURING OPERATIONS COMPLETE ON HORIZONTAL BAKKEN WELL IN THE WILLISTON BASIN

 

Mountainview Energy Ltd. (TSXV: MVW) (“Mountainview” or the “Company”) is pleased to announce an operational update on the completion of the Olson 1-21-16H  horizontal well, which spudded in April 2011 in the SESE-Section 21-Township 29 North, Range 57 East, Roosevelt County, Montana by G3 Operating, LLC. (“G3″), a subsidiary of GeoResources, Inc., a U.S. Public Company traded on NASDAQ.

 

Drilling and fracturing operations on the Olson 1-21-16H well are complete and the well is currently producing.  The initial production rate was 607 barrels of oil equivalent (“boe”) per day.*

The Company acquired approximately a 3.8% working interest in the SM Energy Company (“SM Energy”) Wolter 13-23H well located in Section 14-T163N-R100W, Divide County, North Dakota.   The Company also recently purchased approximately a 1% working interest in the Petro-Hunt LLC/ Miller 157-101-12C-1-1H located in Section 1 & 12-T157N-R101W Williams County, ND.

The Company’s current non-operated wells in the Williston Basin are as follows:

Operator Well Name/Location Initial Rate MVW’s Interest
G3 Operating Olson 1-21-16H 607 boe/d 12.5%
SM Energy Wolter 12-23H confidential status 3.8%
Petro Hunt Miller 157-101-12C-1-1H waiting to spud 1.0%

Mountainview is also pleased to report the Company acquired an additional 4,000 acres in the South Alberta Bakken Play.  Mountainview is continuing with its acreage leasing program in the South Alberta Bakken area and the Company’s goal is to accumulate 100,000 net acres in this area.

Williston Basin Area Activity

Several producing wells have recently been drilled and completed in the Bakken Shale in the vicinity of the Company’s Montana Bakken acreage.  There is production to the south, recently EOG Resources, Inc. reported the #5-1003H Stateline in Roosevelt County, MT, initially flowed an average of 405 barrels of oil and 222,380 cubic feet of gas per day.*  Production is reported to the north on the Taqa North USA, Inc (“Taqa”) Hellegaard #9-12H, located in Section 9-Township 37 North, Range 57 East, Sheridan County, MT,  a 640 acre horizontal well with initial production of 433 boe/d.*  The Hellegaard #9-12H well has produced over 100,000 barrels in just over a year.  According to the State of Montana Board of Oil & Gas, TAQA has 8 producing horizontal Bakken wells in northern Sheridan County.   Production is reported to the east on a 1280 acre horizontal well by Oasis Petroleum, being the Bean 5703 42-34H, with initial production of 1346 barrels of oil per equivalent per day.*

South Alberta Bakken Area Activity

According to the Montana Board of Oil and Gas website, there have been at least 45 wells permitted, spudded, or drilled targeting the South Alberta Bakken.  Anschutz Exploration Corporation (“Anschutz’), Newfield Exploration Company (“Newfield”), and Rosetta Resources Inc (“Rosetta”) have done the majority of the drilling on the Montana side of the play on the Blackfeet Indian Reservation in Glacier County.  Newfield has recently announced an initial rate of 225 boe/day* with only 33% of the lateral producing on one of their horizontal wells.  All three companies plan to continue with operations in the play in 2012.  There are also several other companies that are targeting the Alberta Bakken to the south of the Blackfeet reservation in Pondera and Teton counties, which is where the Company’s acreage is located.  The company is encouraged by industry’s results in the play to date and will continue to observe and study the play.  The Company currently controls approximately 80,000 net acres in the play.

Company Strategy

The Company’s strategy is to grow through acquiring more Williston Basin acreage; targeting the Bakken/Three Forks Shale and developing the acreage in the Company’s portfolio.   Mountainview plans to drill and complete horizontal wells on the Company’s existing acreage, as well as aggressively pursuing non-operated working interests in Bakken and Three Fork wells in the Williston Basin.

Mountainview Energy Ltd. is a public oil and gas company listed on the TSX Venture Exchange, with a primary focus on the exploration, production and development of the Bakken and Three Forks Shale in the Williston Basin and the South Alberta Bakken

For further information, please contact:

Patrick M. Montalban
President & Chief Executive Officer

E-Mail:  mvw@bresnan.net
Web Site:   www.mountainviewenergy.com
Phone: (406) 873-2235 Fax: (406) 873-2835

*The initial production rates expressed in this press release are the 24-hour “Peak Production Rate” of the relevant well.  Peak Production Rates may be established following the intial day of production depending on operator design or well flowback profiles.  The initial production rate may be estimated based on other third party estimates or limited data available at this time. The initial production is estimated using barrels of oil equivalent.

Forward-Looking Statements

Certain information contained in this press release constitutes forward-looking statements, including, without limitation, information related to Mountainview’s participation in certain wells, the timing of spudding, fracturing and other operations on certain wells, the timing of well results and area activity in both the Williston Basin and the South Alberta Bakken plays.  By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company’s control including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources, inability to meet or continue to meet listing requirements, the inability to obtain required consents, permits or approvals and the risk that actual results will vary from the results forecasted and such variations may be material.  Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company’s actual results, performance or achievement could differ materially from those expressed in or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. 

Any references in this news release to initial, early and/or final raw test or production/performance rates and/or “flush” production rates are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter. Additionally, such rates may also include recovered “load oil” fluids used in well completion stimulation. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company.

The forward-looking statements contained in this press release are made as of the date of this press release.  Mountainview 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, except as required by applicable securities laws. Additionally, Mountainview undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.

The forward-looking statements contained in this press release are made as of the date of this press release.  Mountainview 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, except as required by applicable securities laws. Additionally, Mountainview undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.

Barrels of Oil Equivalent

Barrels of oil equivalent (boe) is calculated using the conversion factor of 6 Mcf (thousand cubic feet) of natural gas being equivalent to one barrel of oil. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 bbl (barrel) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Analogous Information 

Certain information in this document may constitute “analogous information” as defined in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101″), including, but not limited to, information relating to the areas in geographical proximity to prospective exploratory lands held or to be to be held by Mountainview.  Such information has been obtained from government sources, regulatory agencies or other industry participants.  Management of Mountainview believes the information is relevant as it helps to define the reservoir characteristics in which Mountainview may hold an interest. Mountainview is unable to confirm that the analogous information was prepared by a qualified reserves evaluator or auditor. Such information is not an estimate of the reserves or resources attributable to lands held or to be held by Mountainview and there is no certainty that the reservoir data and economics information for the lands held or to be held by Mountainview will be similar to the information presented herein. The reader is cautioned that the data relied upon by Mountainview may be in error and/or may not be analogous to such lands to be held by Mountainview.   

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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