Mountainview Energy Ltd. announces production rate for the Olson 2-11S-1H of 506 boe/d for initial 7 days
CUT BANK, MT, Nov. 4, 2013 /PRNewswire/ - Mountainview Energy Ltd. (TSXV: MVW.V) ("Mountainview" or the "Company") provides an operational update on the 2013 summer drilling program in Mountainview's 12 Gage project in the Williston Basin.
Olson 2-11S-1H, Section 2 & 11 T162-101W, Divide County, North Dakota
The Olson 2-11S-1H, (the "Olson 2 Well"), the second well in the three-well summer drilling program in Mountainview's 12 Gage project in the Williston Basin, was drilled by Nabors Rig 272 to a total depth of 18,888' in 16 days. The well encountered encouraging geologic shows while drilling the lateral of 10,168', which was the longest lateral the Company has drilled to-date. The fracture stimulation conducted was a 26-stage plug and perforation program completed successfully with the well being placed on production Oct. 16, 2013. The initial 7 day average production for the Olson 2 Well, which is still recovering frac load water, was 506 boe/d gross (284 boe/d net) of 90% oil. The Olson 2 Well has produced for approximately 18 days averaging 483 boe/d gross (271 boe/d net to the Company) of 90% oil. Similar to the first well of the summer program, the Heckman 7-6-1H Well, the Olson 2 Well has exceeded Company production expectations thus far.
Charlotte 1-12-1H, Section 1 & 12 T162-R101W, Divide County, North Dakota
The Charlotte 1-12-1H, (the "Charlotte Well"), the Company's third Three Forks well of its summer three-well drilling program is most recent well that the Company has placed on production with artificial lift. The Charlotte has only been on production for approximately 5 days. The Company will follow up this release with another announcement of the production results for the Charlotte well.
Mountainview Operational / Production Update
The Company now has five wells from the winter and summer drilling program on production with artificial lift at a current production rates of 1,107 boe/d net. This rate does not include production from the Charlotte well. Average time from the well's spud date to first production (after fracture stimulation) was 65 days for this summer's program, a reduction of over 30% from the previous program. The Company's total corporate production is approximately 1,257 boe/d net.
In addition to the substantial production increase, the Company has entered into a sales agreement for marketing its associated gas from its wells in the 12 Gage project and is working with a partner on a pipeline water disposal system.
Mountainview is also pleased to announce that it has posted an updated corporate presentation on its website at www.mountainviewenergy.com.
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 Mountainview's operational plans and the timing of operations on certain wells, the impact of such operations on production and other expectations with respect to production and reserves expectations. 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.
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 (bbl). 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 ^ Mcf: 1 Bbl, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
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.