CUT BANK, MT,
July 18, 2012 /PRNewswire/ -
Mountainview Energy Ltd. (TSXV: MVW) ("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.
SOURCE Mountainview Energy Ltd.