CUT BANK, MT, Dec. 15, 2011 /PRNewswire/ - Mountainview Energy Ltd. (TSXV: MVW) ("Mountainview" or the "Company") is pleased to announce an operational update on the completion of the Olson 1-21-16H horizontal well, which spudded in April 2011 in the SESE-Section 21-Township 29 North, Range 57 East, Roosevelt County, Montana by G3 Operating, LLC. ("G3"), a subsidiary of GeoResources, Inc., a U.S. Public Company traded on NASDAQ.
Drilling and fracturing operations on the Olson 1-21-16H well are complete and the well is currently producing. The initial production rate was 607 barrels of oil equivalent ("boe") per day.*
The Company acquired approximately a 3.8% working interest in the SM Energy Company ("SM Energy") Wolter 13-23H well located in Section 14-T163N-R100W, Divide County, North Dakota. The Company also recently purchased approximately a 1% working interest in the Petro-Hunt LLC/ Miller 157-101-12C-1-1H located in Section 1 & 12-T157N-R101W Williams County, ND.
The Company's current non-operated wells in the Williston Basin are as follows:
| | | | | | | | Operator | | | | Well Name/Location | | | | Initial Rate* | | | | MVW's Interest |
| | | | | | | | G3 Operating | | | | Olson 1-21-16H | | | | 607 boe/d | | | | 12.5% |
| | | | | | | | SM Energy | | | | Wolter 13-23H | | | | confidential status | | | | 3.8% |
| | | | | | | | Petro Hunt | | | | Miller 157-101-12C-1-1H | | | | waiting to spud | | | | 1.0% |
| | | | | | | | | | | | | | | | | | | | |
Mountainview is also pleased to report the Company acquired an additional 4,000 acres in the South Alberta Bakken Play. Mountainview is continuing with its acreage leasing program in the South Alberta Bakken area and the Company's goal is to accumulate 100,000 net acres in this area.
Williston Basin Area Activity
Several producing wells have recently been drilled and completed in the Bakken Shale in the vicinity of the Company's Montana Bakken acreage. There is production to the south, recently EOG Resources, Inc. reported the #5-1003H Stateline in Roosevelt County, MT, initially flowed an average of 405 barrels of oil and 222,380 cubic feet of gas per day.* Production is reported to the north on the Taqa North USA, Inc ("Taqa") Hellegaard #9-12H, located in Section 9-Township 37 North, Range 57 East, Sheridan County, MT, a 640 acre horizontal well with initial production of 433 boe/d.* The Hellegaard #9-12H well has produced over 100,000 barrels in just over a year. According to the State of Montana Board of Oil & Gas, TAQA has 8 producing horizontal Bakken wells in northern Sheridan County. Production is reported to the east on a 1280 acre horizontal well by Oasis Petroleum, being the Bean 5703 42-34H, with initial production of 1346 barrels of oil per equivalent per day.*
South Alberta Bakken Area Activity
According to the Montana Board of Oil and Gas website, there have been at least 45 wells permitted, spudded, or drilled targeting the South Alberta Bakken. Anschutz Exploration Corporation ("Anschutz'), Newfield Exploration Company ("Newfield"), and Rosetta Resources Inc ("Rosetta") have done the majority of the drilling on the Montana side of the play on the Blackfeet Indian Reservation in Glacier County. Newfield has recently announced an initial rate of 225 boe/day* with only 33% of the lateral producing on one of their horizontal wells. All three companies plan to continue with operations in the play in 2012. There are also several other companies that are targeting the Alberta Bakken to the south of the Blackfeet reservation in Pondera and Teton counties, which is where the Company's acreage is located. The company is encouraged by industry's results in the play to date and will continue to observe and study the play. The Company currently controls approximately 80,000 net acres in the play.
Company Strategy
The Company's strategy is to grow through acquiring more Williston Basin acreage; targeting the Bakken/Three Forks Shale and developing the acreage in the Company's portfolio. Mountainview plans to drill and complete horizontal wells on the Company's existing acreage, as well as aggressively pursuing non-operated working interests in Bakken and Three Fork wells in the Williston Basin.
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
*The initial production rates expressed in this press release are the 24-hour "Peak Production Rate" of the relevant well. Peak Production Rates may be established following the intial day of production depending on operator design or well flowback profiles. The initial production rate may be estimated based on other third party estimates or limited data available at this time. The initial production is estimated using barrels of oil equivalent