Share

Cut Bank, MT (April 14, 2014)  – Mountainview Energy Ltd. (“Mountainview” or “the Company”) (TSXV: MVW)  is  pleased to announce significant 2013 year end reserve growth, highlighting success at the 12 Gage Three Forks  play, for the year ended December 31, 2013. Selected reserve information is outlined below and should be read in conjunction with Mountainview’s upcoming audited financial statements and related management discussion and analysis, which will be made available for review under Mountainview’s  SEDAR profile at www.sedar.com.  Mountainview’s reserves were evaluated by Cawley, Gillespie & Associates, Inc. (“CG&A”) effective December 31, 2013, in accordance with National Instrument 51‐ 101 (“NI 51‐101”) – Standards for Disclosure for Oil and Gas Activities of the Canadian Securities Administrators (the “CG&A Report”).  All of the Company reserves were evaluated in the CG&A Report.  All dollar figures are in USD unless otherwise specified.

2013 Year End Reserve Highlights:

  • Increased Total Proved (“TP”) plus Probable Reserves (“P+P”) by 14.9 times to 11,466 Mboe (88% liquids) and Total Proved (“TP”) Reserves by 14.7 times to 6,776.2 Mboe (88% liquids);
  • Increased P+P Reserves per basic share by 13 times;
  • Increased P+P, Before Tax Net Present Value, discounted at 10% (“BT NPV10%”) by 844% to $103.5 million;
  • Increased P+P, BT NPV10% value per share basic by 718% to $1.18;
  • Achieved P+P finding, development cost (F&D) of $26.19/boe, including changes in future development capital;
  • Achieved a P+P Recycle Ratio of 1.42 times, based on F&D of $26.19/boe and a Q4, 2013 field netback of $37.06/boe;
  • Increased Reserve Life Index (RLI) to 15.7 years (TP) and 26.6 years (P+P) based on Q4 2013 production of 1,183 boe/day compared to 6.2 years (TP) and 10.3 years (P+P) based on Q4 2012 production of 205.2 boe/day;
  • Reserve additions in 2013 of 10,969 Mboe, replaced annual corporate production 40.1 times;
  • Successful initial drilling results and associated booking of future locations on Mountainview’s 12 Gage Three Forks light oil play have attributed 10,277 Mboe (89% liquids) or 94% of the 10,969 Mboe,  P+P, reserves additions in 2012. The eight drilled and booked locations (6.6 net) at 12 Gage represent approximately 10% of the original inventory of net locations, with 72 net un‐drilled locations remaining;
  • There were no acquisitions in 2013.  All reserve increases were achieved through the drill bit; and
  • 100% of reserves evaluated by CG&A per NI 51‐101 standards.
Reserve Category (Gross) Before Tax Net Present Value Discounted at 10% ($000’s)
Light Oil
(Mbbl)
Gas
(MMcf)
BOE’s
(MBOE)
Proved
Developed Producing 2,064.9 2,049.5 2,406.5 49,721.6
Undeveloped 3,898.1 2,829.3 4,369.7 26,192.7
Total Proved 5,963.0 4,878.8 6,776.2 75,914.3
Probable 4,178.0 3,071.7 4,689.8 27,588.3
Total Proved & Probable 10,141.0 7,950.5 11,466.0 103,502.6

Mountainview Energy Ltd. President and CEO Patrick Montalban commented:
“The oil and gas reserves have increased 15 times year over year, which is a testament to the hard work and expertise of the team at Mountainview.  We have grown our reserve value by over 800 percent, supporting our view that the 12 Gage Project is a tremendous asset, a “Company Builder.”  We look forward to further growth as we continue to develop the Three Forks and begin to develop the Bakken in Divide County, North Dakota. We will continue to focus on improving development and production costs as we refine operations in the field.”

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

Brent Osmond, Vice President Finance & Chief Financial Officer
E-Mail: brento@mountainviewenergy.com
Phone: (403) 999-8511

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