Mountainview Energy Ltd. provides operational update on its 12 Gage
Project in the Williston Basin
CUT BANK, MT,
Dec. 4, 2012 /PRNewswire/ -
Mountainview Energy Ltd. (TSXV: MVW) ("Mountainview" or the
"Company") is pleased to provide an operational update.
Operational Update - 12 Gage Project
Wigness 5-8-1H, Section 5 & 8 T162N-101W,
Divide County, North
Dakota
On November 14,
2012 Mountainview spudded the Wigness 5-8-1H well (the
"Wigness Well"), the first Bakken/Three Forks well of Mountainview's planned
three well winter drilling program on its 12 Gage Project.
The 7" intermediate casing for the Wigness Well was successfully
set to a landing point of 8,530 feet and the well subsequently
reached total depth of 18,280 feet. The Company successfully
ran the 4 ½" liner to the total depth and is preparing the Wigness
Well for a 26 stage fracture stimulation. Total operational
days from spudding the well to setting the 4 ½" liner was 19 days.
Mountainview plans to complete the Wigness Well by the end of
December, 2012.
Through its wholly-owned subsidiary Mountain
Divide, LLC ("Mountain Divide"), the Company 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 previously announced credit facility
(the "Facility"), all of Mountain Divide's oil and gas
properties located in Divide County,
North Dakota (including the lands in the 12 Gage Project)
are subject to a 39% after pay-out net profits interest (the
"NPI") held by Mountain Divide's lender under the Facility
(the "Lender"). The NPI is defined as all revenues received
by Mountain Divide, less all operating costs, production taxes, and
capital costs incurred by Mountain Divide. Payments on the NPI
shall commence upon repayment in full of the outstanding Facility.
Pursuant to the agreements underlying the Facility, the NPI 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
Mountainview is currently rigging the Nabors 460
rig down and is preparing to move the rig to the Leininger 3-10-1H
well (the "Leininger Well") location. The Leininger
Well is the second Bakken/Three
Forks well planned for the three well winter drilling
program on Mountainview's 12 Gage Project. This well has been
permitted and the location is built. The Leininger Well is located
approximately 2 miles east of the Wigness Well and Mountainview
expects to spud the Leininger Well on or about December 9, 2012. Through Mountain Divide,
the Company holds a 88.28% working interest in the Leininger Well,
3 to 4% 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. The Leininger Well is also subject to the NPI.
Olson 35-26-1H, Section 35 & 26
T163N-R101W, Divide County, North
Dakota
The Company has received approval from the North
Dakota Industrial Commission to drill the Olson 35-26-1H well (the
"Olson Well"), which will be the final well planned for the
three well winter drilling program on Mountainview's 12 Gage
Project. The Olson Well is located approximately 2-3 miles
north-east of the Leininger Well. Through Mountain Divide,
the Company holds a 52.23% working interest in the Olson Well,
which is also subject to the NPI.
12 Gage Regional Activity Update
As previously stated there are currently at
least five operators developing the Middle Bakken and Three Forks formations near the 12 Gage
Project: American Eagle Energy Corporation, SM Energy Company,
Samson Resources, Crescent Point Energy Corp. and Baytex Energy
Corp. All of the following operators are continuing their
development of the Bakken/Three
Forks play near the 12 Gage Project. Along with these
operators, Divide County, North
Dakota has also seen recent M&A activity with
Continental Resources and Magnum Hunter Resources each making
acquisitions in the area. The following table illustrates the
recent drilling activity that has been made public by the relevant
company or regulatory authorities:
Company |
Well |
Status |
Additional Information |
SM Energy |
Legaard 4-25H |
Completed October 2011;
20-stage frac |
Gross cumulative production: 127,140 bbls of oil
and
111,490 Mcf of gas; an average of 402 boe/d as of 10-2012 |
SM Energy |
August 4-26H |
Confidential-Producing |
Directly north of the planned Olson 35-26H
well. Well
spudded on 8/17/12 |
SM Energy |
Leininger 3-10H |
Confidential-Producing |
Directly north-west of the planned Olson 35-26H
well.
Well spudded on 6/15/12 |
SM Energy |
Carter 9-8HW |
IP - 401 BOPD |
Directly north of two Mountainview DSUs.
Well spudded
on 5/17/12 |
American Eagle |
Christianson 15-12-163-101 |
Complete |
Initial 30 day average production rate of 479
boe/d(2) |
American Eagle |
Cody 15-11-163-101 |
Complete |
Initial 30 day average production rate of 438
boe/d(2) |
American Eagle |
Anton 3-4-163-101 |
Complete |
Initial 12 day average production rate of 427
boe/d(2) |
Notes: |
(1) |
|
|
Information in this table was obtained from public
sources. Please see the cautionary statements at the end of
this news release for some important information. |
(2) |
|
|
The information provided did not provide a break-down of oil,
gas and water amounts that make up these production numbers, nor
was any further information about the tests made available. Please
see the cautionary statements at the end of this news release for
some important information. |
Non-Operational Update - Williston Basin
To date the Company has participated in 10
(gross) Bakken/Three Forks wells
in the Williston Basin. The
following table lists the wells and their current status which is
the last available month's average daily production.
|
|
|
|
Operator |
Well Name |
Working Interest |
Well Status BOPD |
G3 Operating |
Olson 1-21-16H |
12.5% |
92 |
SM Energy |
Wolter 13-23H |
3.25% |
273 |
Hess |
Strahan 15-22H |
.625% |
120 |
Petro-Hunt |
Miller 157-101-12C-1-1H |
.787% |
112 |
Samson |
Zuma 15-22-35-58H |
9.75% |
31 |
Samson |
Riva Ridge 6-7-33-56H |
~3.24% |
81 |
American Eagle |
Anton 3-4-163-101 |
3.38% |
Confidential List |
Zavanna |
Panther 16-21-1H |
2.200533% |
432 |
Zavanna |
Jaguar 1-22-1H |
1.01% |
358 |
Zavanna |
Leopard 20-17-1H |
1.01% |
520 |
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.
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. 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
ratio of 6 Mcf: 1 Bbl, 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 or the Borrower. 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 expected date of completion
of the Wigness Well, the expected date of spudding of the Leininger
Well, potential drilling locations 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.