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February 25, 2014

Mountainview Energy Ltd. (TSXV: MVW) (“Mountainview” or the “Company“) provides an operational update on its two-well drilling program.

Operational Update

Mountainview has successfully completed the 32 stage fracture treatment on both the Reistad 23-14-1H (the “Reistad 23 well“) and the Reistad 26-35-1H (the “Reistad 26 well“) from the Company’s second multi-well pad in its 12 Gage project in Divide County, ND.  The wells were stimulated simultaneously using a zipper frac leading to operational efficiencies and, thus, considerable cost savings. These efficiencies were achieved in spite of exceptionally cold temperatures in northwestern North Dakota.

A service rig has been moved onto the well pad and clean-out operations have begun on the Reistad 23 well.  The Company expects to complete clean-out operations and bring the Reistad 23 well onto production before the end of February.  The service rig will then perform the same clean-out operations on the Reistad 26 well and first production is expected to commence during the first week of March.  The wellhead production equipment and tankage are already installed on the well pad in preparation for first production.

12-Gage Drilling Program Overview

With six wells successfully drilled and producing to date, the Company looks forward to adding production from the two Reistad wells for a total of eight producing wells by the first week of March.  The development of the 12-Gage property continues to highlight the operational evolution of the Company, as drilling and completion costs have decreased by up to 24%. This was accomplished through the expertise of the in-house operations staff and the core group of field consultants and service companies who are focused on operational efficiencies and timely execution.  The following table highlights the Company’s capital cost reductions on the six operated, high working interest 12-Gage wells:

2013 Winter Drilling & Completion Program

Well Name Drilling & Completion Costs Company Working Interest
Wigness 5-8-1H $  8,250,000 93.8%
Leininger 3-10-1H $  8,400,000 87.5%
Olson 35-26-1H $  8,530,000 61.2%
TOTAL COSTS $25,180,000  

2013 Summer Drilling & Completion Program

Well Name Drilling & Completion Costs Company Working Interest
Heckman 7-6-1H $  6,740,000 89.8%
Olson 2-11S-1H $  6,290,000 70.3%
Charlotte 1-12H $  6,335,000 69.8%
TOTAL COSTS: $19,365,000  

Corporate Presentation

Mountainview has updated its corporate presentation, which can be found on its website: www.mountainviewenergy.com.

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.

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