CUT BANK, MT, April 30, 2012 /CNW/ – Mountainview Energy Ltd. (MVW.V) (“Mountainview” or the “Company”) is pleased to announce that it has entered into a binding purchase and sale agreement (the “Purchase and Sale Agreement”) to acquire (the “Acquisition”) 12,778 net acres of oil and gas leaseholds in Divide County, North Dakota (the “Assets”) from a private oil and gas company. Pursuant to the Purchase and Sale Agreement, Mountainview has agreed to pay $1,000.00 per net acre for a total purchase price equal to $12,678,000 (the “Purchase Price”). Future operational plans related to the Assets will be disclosed following the closing of the Acquisition.
As stated in previous news releases of the Company, a key component of Mountainview’s strategy has been and will continue to be to grow through the acquisition of Williston Basin acreage. The Acquisition brings the Company’s total acreage in the Williston Basin to approximately 36,000 net acres. The Williston Basin has recently seen a significant increase in drilling activity, with production occurring from both the Bakken and Three Forks formations. Issuers in the area of the Williston Basin where the Assets are located have also noted lower drilling and completion costs compared to other parts of the Williston Basin. The Company has recently participated in the SM Energy Wolter 13-23H which is in close proximity to the Assets. The Wolter well, which is located in sections 23 & 14, T163N, R100W has been on production for 89 days and has produced 48,982 barrels of oil and 41,584 MCF of natural gas which is a 628 boe/d average daily production over the life of the well. Another well was drilled in close proximity to the Assets by SM Energy; the Legaard 4-25H well, which is located in section 25 & 36, T163N, R101W has been on production for 115 days and the well has produced 53,647 barrels of oil and 52,375 MCF of gas which is a 542 boe/d average daily production over the life of the well.
Mountainview expects to fund the Acquisition through the issuance of debt or equity securities (or a combination of both) or through the sale of non-core assets. In the event that Mountainview is not able to secure debt or equity financing for the Purchase Price on attractive terms, three insiders of the Corporation have agreed to secure the necessary funds.
The closing of the Acquisition is expected to occur on May 30, 2012 and is subject to the approval of TSX Venture Exchange and all other necessary regulatory approvals. In addition, the completion of the Acquisition is subject to several conditions, including the satisfactory completion of due diligence and title reviews by the Corporation.
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 .
Forward Looking Statement Disclaimer and Other Cautionary Statements
This press release contains forward looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “approximate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “would” and similar expressions. More particularly, this press release contains statements concerning the anticipated use of funds from the Facility and certain related matters. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company’s control, and may be based on assumptions that could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Although Mountainview believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Mountainview can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Mountainview may not be able to obtain the necessary shareholder, regulatory and stock exchange approvals on the timelines it has planned or at all. The transactions to be considered at the Meeting will not be completed at all if these approvals are not obtained. Accordingly, there is a risk that such transactions will not be completed within the anticipated time or at all.
The forward looking statements contained in this press release are made as of the date hereof and Mountainview undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available.
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.Back to top