Share

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

Reistad Well Pad (Reistad 26-35S-1H & Reistad 23-14-1H)

Mountainview is pleased to announce that it has placed both the Reisatd 26-35S-1H, (the “Reistad 26 Well”) and the Reistad 23-14-1H, (the “Reistad 23 well”) wells on production with artificial lift. Both wells were drilled in the Three Forks (Torquay) formation with ~10,000 ft horizontal laterals from a dual pad located in the southern portion of the 12 Gage Project. The wells were both completed using a 32-stage plug and perforation fracture stimulation. According to field measurements, the initial 7 day average production for the Reistad 26 Well, which was still recovering frac load water, was 401 boe/d gross (398 boe/d net), comprised of 90% oil. The Reistad 26 Well has produced for approximately 40 days averaging 337 boe/d gross (334 boe/d net), comprised of 90% oil. The Company has a 99.2% working interest in the Reistad 26 well.

The 7 day average Initial Production rate for the Reistad 23 Well, which was still recovering frac load water, was 291 boe/d gross (269 boe/d net) comprised of 90% oil. The Reistad 23 Well has produced for approximately 53 days averaging 241 boe/d gross (223 boe/d net) comprised of 90% oil. The Company has a 92.54% working interest in the Reistad 23 well.

The Company is very encouraged, having de-risked the Southern extent of its 12 Gage Project. The Reistad 26 well is the southern-most Three Forks (Torquay) lateral drilled and initial production rates met company expectations for wells in the 12 Gage Project.

Company Production

Mountainview’s Working Interest Production Exit Rate for the 1st quarter of 2014 was 1,284 boe/d, providing positive cash flow for ongoing operations. Mountainview continues to leverage the strength of the management team to provide production and reserve growth.

Corporate Presentation

Mountainview Energy has updated and posted its Corporate Presentation on its website: www.mountainviewenergy.com.

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