Mountainview Energy Ltd Announces Initial Production Test Of 442 Boe/d In The Williston Basin
TORONTO, Feb. 5, 2013 /PRNewswire/ - 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.
Wigness 5-8-1H, Section 5 & 8 T162N-101W, Divide County, North Dakota
Upon completion of the successful fracing operations on the Wigness 5-8-1H well (the " Wigness Well"), the Company's first horizontal Three Forks well in its three-well winter drilling program, Mountainview conducted a 6-day production/flow test. During the 6 day period the well flowed on a 32/64" choke and the well averaged 355 barrels of oil per day, 228 mcf of gas per day and 998 barrels of water per day. The peak production rate on the 6th day was 383 barrels of oil per day, 352 mcf of gas per day and 1,212 barrels of water per day. The Company plans to install an artificial lift system in the next three to five days with a view to putting the well on production.
Through its wholly-owned subsidiary Mountain Divide, LLC (" Mountain Divide "), Mountainview holds 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. 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 is situated) are subject to a 39% after pay-out net profits interest held by Mountain Divide's lender under the Facility, which 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.Leininger 3-10-1H, Section 3 & 10 T162N-R101W, Divide County, North Dakota The completion program for Leininger 3-10-1H well (the " Leininger Well"), the second horizontal Three Forks well in Mountainview's three-well winter drilling program was pushed back due to cold weather and timing issues with Sanjel. Completion operations on the the Leininger Well commenced on February 1, 2013, with a 26-stage fracture stimulation. To date, the Company has successfully completed the 26 stage fracture stimulation and is currently moving Sanjel off location. The Company will start to flow back the Leininger well on the morning of February 6, 2013. Olson 35-26-1H, Section 35 & 26 T163N-R101W, Divide County, North Dakota Mountainview has completed drilling operations with reaching a total depth of 18,416' on the Olson 35-26-1H (the " Olson Well") location. The Olson Well is the final well planned for the three-well winter drilling program on Mountainview's 12 Gage Project and is located approximately 2-3 miles north-east of the Leininger Well. The Olson well was drilled in 16 days, which is the same amount of time it took to drill the Leininger Well. The 4 ½" frac string has successfully been ran in the hole and successfully pressure tested. The completion program on the Olson well is scheduled to commence at the end of February, 2013, with a 26-stage fracture treatment and Mountainview will provide an update when appropriate. 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. 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. 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. 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 initial production rates of the Wigness Well, the expected date of operations on other wells 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. SOURCE Mountainview Energy Ltd.
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