TORONTO,
March 19, 2013 /CNW/ - 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:
- The Company installed an artificial lift system 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. The Wigness well, which was put on production on
February 16, 2013, has produced
intermittingly because of gas lock issues and the Company is
currently evaluating options to curtail this problem. During this
period of time the well produced for 7 days and averaged 396 bopd,
195 mcfd, and 748 bwpd. The peak production rate on the
Wigness well was 613 bopd, 383 mcfd and 1,547 bwpd.
- The Leininger 3-10-1H well (the "Leininger Well"), the
second horizontal Three Forks well in Mountainview's three-well
winter drilling program, flowed for three days during the
completion program at an average rate of 380 bopd, 230 mcfd, and
1,088 bwpd. The Company proceeded with the completion program
by moving a service rig onto the well and milled out the 25 bridge
plugs from the plug and perf fracture stimulation. After
cleaning the well out properly the Company installed an artificial
lift system and placed the well on production on March 14, 2013. Since the well has been on
production it has averaged 348 bopd, 636.5 mcfd, and 772
bwpd. The peak production rate on the first day of production
was 557 boe/d, comprised of 427 bopd, 838 mcfd, and 1,004 bwpd.
- Mountainview has completed the 26 stage plug and perf fracture
stimulation on the Olson 35-26-1H well (the "Olson Well"),
the final horizontal Three Forks well in its three-well winter
drilling program, which is located approximately 2-3 miles
north-east of the Leininger Well. The Company commenced the
completion program and a service rig milled out the 25 bridge plugs
from the plug and perf fracture stimulation. After completing
the clean-out of the well, the Company plans to install an
artificial lift system and place the well on production.
Through its wholly-owned subsidiary Mountain
Divide, LLC ("Mountain Divide"), Mountainview holds: (a) 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; (b) an 87.51% working interest in the
Leininger Well, 3.12% 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; and (c) a 62.27% working interest in the Olson Well,
16.37% 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, the Leininger Well and the Olson
Well are situated) are subject to a 39% after pay-out net profits
interest held by Mountain Divide's lender under the Facility.
These 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.
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. 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,
the expected date of operations on the Company's properties and
other matters. 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.