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March 19, 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
The Company installed an artificial lift system 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. The Wigness well, which was put on production on February 16, 2013, has produced intermittingly because of gas lock issues and the Company is currently evaluating options to curtail this problem. During this period of time the well produced for 7 days and averaged 396 bopd, 195 mcfd, and 748 bwpd. The peak production rate on the Wigness well was 613 bopd, 383 mcfd and 1,547 bwpd.
The Leininger 3-10-1H well (the " Leininger Well"), the second horizontal Three Forks well in Mountainview's three-well winter drilling program, flowed for three days during the completion program at an average rate of 380 bopd, 230 mcfd, and 1,088 bwpd. The Company proceeded with the completion program by moving a service rig onto the well and milled out the 25 bridge plugs from the plug and perf fracture stimulation. After cleaning the well out properly the Company installed an artificial lift system and placed the well on production on March 14, 2013. Since the well has been on production it has averaged 348 bopd, 636.5 mcfd, and 772 bwpd. The peak production rate on the first day of production was 557 boe/d, comprised of 427 bopd, 838 mcfd, and 1,004 bwpd.
Mountainview has completed the 26 stage plug and perf fracture stimulation on the Olson 35-26-1H well (the " Olson Well"), the final horizontal Three Forks well in its three-well winter drilling program, which is located approximately 2-3 miles north-east of the Leininger Well. The Company commenced the completion program and a service rig milled out the 25 bridge plugs from the plug and perf fracture stimulation. After completing the clean-out of the well, the Company plans to install an artificial lift system and place the well on 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 (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.
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 STATEMENTSInitial Production LevelsAny 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.Analogous InformationCertain 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 StatementsCertain 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 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.