CUT BANK, MT, April 17, 2013 /CNW/ - 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:
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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).
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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).
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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.
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. 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.
Forward-Looking Statements
Certain information contained in this press release constitutes
forward-looking statements, including, without limitation, information
related to the initial production rates, the expected date of
operations on the Company's properties, the expected effects of certain
operations on the Company's properties and production characteristics
and other matters. 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.
SOURCE: Mountainview Energy Ltd.
Patrick M. Montalban, President & Chief Executive Officer
Address: PO Box 200, Cut Bank, MT 59427
E-Mail: mvw@bresnan.net
Web Site: www.mountainviewenergy.com
Fax: (406) 873-2835