CUT BANK, MT, Oct. 28, 2013 /PRNewswire/ - Mountainview Energy Ltd. (TSXV:
MVW.V) (OTCQX: MNVWF) ("Mountainview" or the "Company") is pleased to provide an operational update on the 2013 summer
drilling program in the Williston Basin.
Operational Update
Mountainview has now completed its second drilling program in 2013 on
the 12 Gage Project. With the completion of this latest program, the
Company operates 4.3 net wells (6.0 gross wells) in the project and
approximately 35%-40% of the project lands are held by production.
Based on field production numbers, the Company averaged 890 barrels of
oil equivalent ("boe") per day ("boe/d") gross (715 boe/d net) of 90% oil for the first 15 days of October in
its 12 Gage project with 4 wells producing. Overall Mountainview has
seen its overall corporate production increase by 290% on both a gross
and net basis since the beginning of 2013.
The Company achieved its goal of reducing drilling and completion costs
from $7.5-8.0 million on its initial 2013 drilling program in the 12
Gage Project to approximately $6.5 million for the summer drilling
program.
The Company is also pleased to announce that Nick Timm has joined the
Mountainview team as a full time Field Supervisor for the 12 Gage
Project. Mr. Timm, who was previously employed by a reputable operator
in the area, brings nearly 10 years of operational field-based
experience to the team.
Mountainview has increased its artificial lift capabilities on all of
its operated Three Forks wells by deploying an ESP (Electric
Submersible Pump) in each well. This artificial lift change in the
wells has increased production in the first three wells of the 2013
drilling program by approximately 35% and is expected to have a
significant positive impact on production levels for the three 'new'
wells; the Heckman 7-6-1H, the Olson 2-11S-1H and the Charlotte
1-12-1H..
Heckman 7-6-1H, Section 7 & 6 T162N-101W, Divide County, North Dakota
The Heckman 7-6-1H well (the "Heckman Well"), the Company's first Three Forks well of its three-well summer
drilling program was drilled to a total depth of 18,165' in 19 days. A
26-stage plug and perf fracture stimulation was successfully completed
and the well was cleaned out and placed on production. The milling of
the plugs and clean-out of the well was accomplished in 14-days
compared to the 30-days experienced with the wells during the previous
program. The initial 7 day average production on this well was 532
boe/d gross (477 boe/d net) of 90% oil. The Heckman Well, which is
still recovering frac load water, has produced for approximately 30
days averaging 441 boe/d gross (396 boe/d net) of 90% oil over that
period. This well has exceeded Company production expectations thus
far.
Olson 2-11S-1H, Section 2 & 11 T162-101W, Divide County, North Dakota
The Olson 2-11S-1H, (the "Olson 2 Well"), the Company's second Three Forks well of its summer three-well
drilling program, was drilled to a total depth of 18,888' in 16 days.
The Company successfully completed the 26-stage plug and perf fracture
stimulation and placed the well on production on Oct. 16, 2013. The
milling of the plugs and the clean-out of the wells was accomplished in
12 days. Fluid production results of the initial flowback of the well
during the cleanout were very encouraging. The Company will give an
update once a stable production rate is established.
Charlotte 1-12-1H, Section 1 & 12 T162-R101W, Divide County, North
Dakota
The Charlotte 1-12-1H, (the "Charlotte Well"), the Company's third Three Forks well of its summer three-well
drilling program, was drilled to a total depth of 19,000' in 14 days.
Mountainview successfully completed the well with a 32-stage plug and
perf fracture stimulation and flowed back the well. The Company has
currently just completed the clean out operations and is starting to
place the well on production. The Charlotte well is the Company's
first well to be completed with a 32-stage fracture stimulation and the
company still plans to meet its projected drilling and completion
budget of $6.5MM on this well.
Management's Comments
Patrick Montalban, President and CEO of Mountainview said "Management is very encouraged by the success of the 2013 summer drilling
program. We attribute this success to the in-house engineering staff,
newly hired field superintendent and consistent consultant field
supervision, who all contributed to decreasing costs and increasing
operating efficiency and production. With the completion of the summer
drilling program and the artificial lift enhancement operations we have
undertaken, we are quickly building each of our knowledge base and
operational capabilities with these assets, which will drive our daily
production and reserve base for our shareholders."
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
Forward-Looking Statements
Certain information contained in this press release constitutes
forward-looking statements, including, without limitation, information
related to Mountainview's operational plans and the timing of
operations on certain wells, the impact of such operations on
production and other expectations with respect to production and
reserves expectations. 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.
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 (bbl). 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 ^ Mcf: 1 Bbl, utilizing a conversion on a 6:1
basis may be misleading as an indication of value.
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.