Share

Wednesday, April 17, 2013

Mountainview Energy Ltd. (TSXV: MVW) (“Mountainview” or the “Company”) is pleased to provide an operational update on Mountainview’s 12 Gage Project in the Williston basin:

  • The Company has repaired the artificial lift system on the Wigness 5-8-1H well, the Company’s first horizontal Three Forks well in its three-well winter drilling program. This well has produced over the last 10 days without any pumping issues. During the 23 days that the Wigness well has been on production, it has averaged 836 bbls/d of fluid (at a 33% oil cut) and 236 mcf/d of natural gas for a total of 313 boe/d (294 boe/d net).
  • The Company placed the Leininger 3-10-1H well, the second horizontal Three Forks well in Mountainview’s three-well winter drilling program, on production on March 14, 2013. During the 23 days that the Leininger well has been on production, it has averaged 799 bbls/d of fluid (at a 32% oil cut) and 399 mcf/d of natural gas for a total of 324 boe/d (283 boe/d net).
  • Mountainview completed the clean-out operations following the 26 stage plug and perf fracture stimulation on the Olson 35-26-1H well, the final horizontal Three Forks well in its three-well winter drilling program. The Company installed an artificial lift system on the well and placed the well on production April 11, 2013. The peak production day for the initial four day test on this well was 2,057 bbls/d of fluid (at a 19% oil cut) and 1,089 mcf/d of natural gas for a total of 574 boe/d (357.43 boe/d net). During that four day test the well averaged 1,273 bbls/d of fluid (at a 21% oil cut) and 649 mcf/d of natural gas for a total of 372 boe/d (232 boe/d net). The Company plans to follow with another update on the average daily production over the next several weeks.

Through its wholly-owned subsidiary Mountain Divide, LLC (“Mountain Divide”), Mountainview holds: (a) a 93.75% working interest in the Wigness Well, 25% of which is subject to reversion to another working interest owner following payout of 100% of the cost of their proportionate working interest costs in the well plus a 200% penalty; (b) an 87.51% working interest in the Leininger Well, 3.12% of which is subject to reversion to another working interest owner following payout of 100% of the cost of their proportionate working interest costs in the well plus a 200% penalty; and (c) a 62.27% working interest in the Olson Well, 16.37% of which is subject to reversion to another working interest owner following payout of 100% of the cost of their proportionate working interest costs in the well plus a 200% penalty. Pursuant to Mountain Divide’s credit facility (the “Facility”), all of Mountain Divide’s oil and gas properties located in Divide County, North Dakota (including the lands on which the Wigness Well, the Leininger Well and the Olson Well are situated) are subject to a 39% after pay-out net profits interest held by Mountain Divide’s lender under the Facility. These payments shall not commence until repayment in full of the outstanding Facility and will automatically reduce to 20% once the Lender achieves a 1.65 x return on investment.

Managements Comments

Patrick Montalban, CEO and President of Mountainview Energy states, “After completing the initial three well drilling program on the Company’s 12 Gage Project, we have increased our production from approximately 200 boe/d to over 1,000 boe/d net to the Company. We finished the 3 well drilling and completion program in less than 5 months. To accomplish this in mid winter with brutal weather conditions is outstanding. At this time the wells are meeting our production expectations and the Company will continue in its efforts to optimize artificial lift on these three wells. With the knowledge that we have gained from this drilling program we will be able to reduce costs with future operated wells in the Willston Basin. The addition of Justin Balkenbush as VP of Operations will play a key role in optimizing production and lowering drilling and completion costs.”

About Mountainview

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
Address: PO Box 200, Cut Bank, MT 59427
E-Mail: mvw@bresnan.net
Web Site: mountainviewenergy.com
Fax: (406) 873-2835

CAUTIONARY STATEMENTS

Initial Production Levels

Any references in this news release to initial, early and/or 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 initial production rate may be estimated based on other third party estimates or limited data available at this time. The initial production is generally estimated using boes.  In all cases in this press release initial production or test are not necessarily indicative of long-term performance of the relevant well or fields or of ultimate recovery of hydrocarbons.

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 is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency ratio of 6 Mcf: 1 Bbl, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

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 or the Borrower.  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.

Forward-Looking Statements

Certain information contained in this press release constitutes forward-looking statements, including, without limitation, information related to the expected date of completion of the Wigness Well, the expected date of spudding of the Leininger Well, potential drilling locations and other operational plans.  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 service providers, 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.

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.

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.

Download article as PDF
Back to top