Mountainview Energy Ltd Announces Initial Production Test of 442
Boe/d in the Williston Basin
TORONTO,
Feb. 5, 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 Williston basin.
Wigness 5-8-1H, Section 5 & 8 T162N-101W,
Divide County, North
Dakota
Upon completion of the successful fracing
operations 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, Mountainview conducted a 6-day
production/flow test. During the 6 day period the well flowed
on a 32/64" choke and the well averaged 355 barrels of oil per day,
228 mcf of gas per day and 998 barrels of water per day. The peak
production rate on the 6th day was 383 barrels of oil per day,
352 mcf of gas per day and 1,212 barrels of water per day.
The Company plans to install an artificial lift system in the next
three to five days with a view to putting the well on
production.
Through its wholly-owned subsidiary Mountain
Divide, LLC ("Mountain Divide"), Mountainview 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 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 is
situated) are subject to a 39% after pay-out net profits interest
held by Mountain Divide's lender under the Facility, which 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.
Leininger 3-10-1H, Section 3 & 10
T162N-R101W, Divide County, North
Dakota
The completion program for Leininger 3-10-1H
well (the "Leininger Well"), the second horizontal Three
Forks well in Mountainview's three-well winter drilling program was
pushed back due to cold weather and timing issues with Sanjel.
Completion operations on the the Leininger Well commenced on
February 1, 2013, with a 26-stage
fracture stimulation. To date, the Company has successfully
completed the 26 stage fracture stimulation and is currently moving
Sanjel off location. The Company will start to flow back the
Leininger well on the morning of February 6,
2013.
Olson 35-26-1H, Section 35 & 26
T163N-R101W, Divide County, North
Dakota
Mountainview has completed drilling operations
with reaching a total depth of 18,416' on the Olson 35-26-1H (the
"Olson Well") location. The Olson Well is the final well
planned for the three-well winter drilling program on
Mountainview's 12 Gage Project and is located approximately 2-3
miles north-east of the Leininger Well. The Olson well was
drilled in 16 days, which is the same amount of time it took to
drill the Leininger Well. The 4 ½" frac string has successfully
been ran in the hole and successfully pressure tested. The
completion program on the Olson well is scheduled to commence at
the end of February, 2013, with a 26-stage fracture treatment and
Mountainview will provide an update when appropriate.
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.
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. 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 initial production rates of
the Wigness Well, the expected date of operations on other wells
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.