Mountainview Energy Ltd Announces Closing on Acquisition of 12,579 Net Acres in the Bakken and Three Forks Play in the Willisto
July 16 2012 - 5:15PM
PR Newswire (Canada)
CUT BANK, MT, July 18, 2012 /CNW/ - Mountainview Energy Ltd.
("Mountainview" or the "Company") is pleased to announce that
further to its news release of April 30, 2012 it has closed the
acquisition of 12,579 net acres of oil and gas leaseholds in Divide
County, North Dakota from a private oil and gas company for
$12,579,000 (the "Transaction"). Mountainview has identified an
initial twenty drilling locations on this project targeting the
Three Forks Formation. The first location is an offset south
of SM Energy Company's Wolter 1-28H well, located in Sec. 28,
T163-R100W. The Wolter 1-28H well had initial production of
approximately 550 barrels of oil per day, 367 MCF of natural gas
per day and 447 barrels of water per day, and has produced 149,611
barrels of oil equivalent ("boe") in approximately 1 year of
production, or approximately 410 boe/d, with a 89.93% oil
weighting. The second location is an offset southwest of SM
Energy Company's Legaard 4-25H well, located in Sec. 25 ,
T163N-R101W. The Legaard 4-25H well had initial production of
approximately 543 barrels of oil per day, 350 MCF of natural gas
per day and 771 barrels of water per day, and has produced 99,039
boe in approximately 7 months of production, or approximately 472
boe/d, with a 86.89% oil weighting. Several prominent companies are
drilling and developing the Bakken and Three Forks formations in
this area, including SM Energy Company, Samson Resources, American
Eagle Energy, Baytex Energy Corp. and Crescent Point Energy
Corp. With the closing of the Transaction, the Company's
current acreage position in the Williston Basin is approximately
36,000 net acres. Patrick Montalban, Mountainview's President and
Chief Executive Officer, commented, "We are very pleased to
announce Mountainview's final closing on the acquisition of the 12
Gage Prospect in Divide County, North Dakota. Mountainview
has now completed a strategic goal of acquiring over 30,000 net
acres in the Williston Basin. The Company will now focus on
drilling its acreage position in the 12 Gage Prospect in Divide
County, North Dakota and the Stateline Project in Sheridan County,
Montana in the Williston Basin." 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 Forward-Looking Statements Certain information
contained in this press release constitutes forward-looking
statements, including, without limitation, information related to
the Transaction, drilling locations and the operational plans on
certain assets acquired by Mountainview. 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. Initial Production Rates
The initial production rates expressed in this press release may be
estimated based on third party estimates or limited data available
at this time. The initial production is estimated using boes. Any
references in this news release to initial 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. Barrels of Oil Equivalent The
Corporation has adopted the standard of 6 mcf:1 boe when converting
natural gas to barrels of oil equivalent. Boes may be
misleading, particularly if used in isolation. A boe conversion
ratio of 6 mcf:1 boe 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
of 6:1, utilizing a conversion on a 6:1 basis may be misleading as
an indication of value. 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
regulatory filings, continuous disclosure records of industry
participants, presentation materials of industry participants,
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 production, reserves or
resources attributable to lands held or to be held by Mountainview
and there is no certainty that the production, reservoir data and
economic 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. 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. 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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