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
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.
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.