Mountainview Energy Ltd Announces the Acquisition of 13,000 Net Acres in the Bakken and Three Forks Play in the Williston Basin
April 28 2012 - 7:25PM
PR Newswire (Canada)
/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR
TO ANY UNITED STATES NEWS SERVICES./ CUT BANK, MT, April 30, 2012
/CNW/ - Mountainview Energy Ltd. ("Mountainview" or the "Company")
is pleased to announce that it has entered into a binding purchase
and sale agreement (the "Purchase and Sale Agreement") to acquire
(the "Acquisition") 12,778 net acres of oil and gas leaseholds in
Divide County, North Dakota (the "Assets") from a private oil and
gas company. Pursuant to the Purchase and Sale Agreement,
Mountainview has agreed to pay $1,000.00 per net acre for a total
purchase price equal to $12,678,000 (the "Purchase Price").
Future operational plans related to the Assets will be disclosed
following the closing of the Acquisition. As stated in previous
news releases of the Company, a key component of Mountainview's
strategy has been and will continue to be to grow through the
acquisition of Williston Basin acreage. The Acquisition brings the
Company's total acreage in the Williston Basin to approximately
36,000 net acres. The Williston Basin has recently seen a
significant increase in drilling activity, with production
occurring from both the Bakken and Three Forks formations.
Issuers in the area of the Williston Basin where the Assets are
located have also noted lower drilling and completion costs
compared to other parts of the Williston Basin. The Company
has recently participated in the SM Energy Wolter 13-23H which is
in close proximity to the Assets. The Wolter well, which is
located in sections 23 & 14, T163N, R100W has been on
production for 89 days and has produced 48,982 barrels of oil and
41,584 MCF of natural gas which is a 628 boe/d average daily
production over the life of the well. Another well was
drilled in close proximity to the Assets by SM Energy; the Legaard
4-25H well, which is located in section 25 & 36, T163N, R101W
has been on production for 115 days and the well has produced
53,647 barrels of oil and 52,375 MCF of gas which is a 542 boe/d
average daily production over the life of the well.(1) Mountainview
expects to fund the Acquisition through the issuance of debt or
equity securities (or a combination of both) or through the sale of
non-core assets. In the event that Mountainview is not able
to secure debt or equity financing for the Purchase Price on
attractive terms, three insiders of the Corporation have agreed to
secure the necessary funds. The closing of the Acquisition is
expected to occur on May 30, 2012 and is subject to the approval of
TSX Venture Exchange and all other necessary regulatory approvals.
In addition, the completion of the Acquisition is subject to
several conditions, including the satisfactory completion of due
diligence and title reviews by the Corporation. 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 U.S.
Securities Laws Matters This press release does not constitute an
offer to sell or a solicitation of an offer to buy any securities
in the United States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), or any state securities laws,
and may not be offered or sold within the United States (as defined
in the U.S. Securities Act) unless registered under the U.S.
Securities Act and applicable state securities laws, or unless an
exemption from such registration is available. 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. Such information has been
obtained from government sources, regulatory agencies or other
industry participants. 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 Acquisition, the
source of funds for the Purchase Price and the timing of the
closing of the Acquisition. 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 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. 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. 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. 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.
------------------------------ (1) These production numbers were
referenced in the North Dakota Oil and Gas Division website.
Mountainview Energy Ltd. CONTACT: Patrick M. MontalbanPresident
& Chief Executive OfficerE-Mail: mvw@bresnan.netWeb Site:
www.mountainviewenergy.comPhone: (406) 873-2235 Fax: (406) 873-2835
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