CUT BANK, MT, May 30, 2013 /PRNewswire/ - Mountainview Energy Ltd. (TSXV: MVW) ("Mountainview" or the "Company") is pleased to announce that it has filed its financial statements and related Management's Discussion and Analysis for the three months ended March 31, 2013, which are available for review at www.sedar.com.
Mountainview is also pleased to provide an operational update on the Company's 12 Gage Project in the Williston basin. The Company has now successfully completed its winter drilling program and has placed all three wells on production.
The Wigness 5-8-1H well, the first horizontal Three Forks well in the winter drilling program, has produced for 94 days. The Wigness well averaged productive capacity of 221 boe/d (92% oil) over the last 7 days of production and 217 boe/d (93% oil) over the last 30 days of production, respectively.
The Leininger 3-10-1H well, the second horizontal Three Forks well in the winter drilling program, has produced for 75 days. The Leininger well averaged productive capacity of 242 boe/d (93% oil) over the last 7 days of production and 248 boe/d (93% oil) over the last 30 days of production, respectively.
The Olson 35-26-1H well, the third horizontal Three Forks well in the winter drilling program, has produced for 47 days. The Olson well averaged productive capacity of 256 boe/d (93% oil) over the last 7 days of production and 274 boe/d (85% oil) over the last 30 days of production, respectively.
References to productive capacity relate to the fact that the Company is successfully marketing the above-referenced oil production and is actively looking for opportunities to market the above-referenced gas production.
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, 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 credit facility. These payments shall not commence until repayment in full of the outstanding amounts owed under the credit facility and will automatically reduce to 20% once the lender achieves a 1.65 x return on investment.
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
This press release may contain forward-looking statements, including, without limitation, information related to the production rates and marketing efforts. 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.