Mountainview Announces the Acquisition of a 20% Interest in up to 67,000 Net Acres Targeting the Bakken and Three Forks Shale in the Williston Basin and the Entering into of a Joint Operating Agreement with a Large Independent Oil and Gas Company to Develop the Acreage

TSX-V: "MVW"

CUT BANK, MT, July 26, 2011 /PRNewswire/ - Mountainview Energy Ltd. (TSX-V: MVW) ("Mountainview" or the "Corporation") is pleased to announce that it has entered into a binding letter of intent (the "Letter of Intent") to acquire (the "Acquisition") a 20% interest in approximately 67,000 acres (approximately 13,400 net acres) in the Medicine Lake Prospect located in Divide County, North Dakota and Richland, Roosevelt and Sheridan County, Montana (the "Assets").  Pursuant to the Letter of Intent, the consideration for the Acquisition is payable through the issuance of up to 33,115,111 common shares of the Corporation ("Common Shares") at a deemed price of $0.65CAD per Common Share. The Acquisition along with the acreage currently held by Mountainview in Divide County, North Dakota, and Richland, Roosevelt and Sheridan County, Montana brings the Corporation's combined acreage in the Williston Basin to approximately 25,400 net acres.

In connection with the Acquisition, Mountainview is also pleased to announce that it has entered into a joint operating agreement with a large independent U.S. oil and gas company, to jointly develop the Assets.  This joint interest party will be the operator on this project.

Certain vendors of the Assets are insiders of the Corporation by virtue of their shareholdings in the Corporation (the "Insiders").  The Insiders own, directly or indirectly, an aggregate of a 55% interest in the Assets and pursuant to the Letter of Intent such Insiders are to be issued an aggregate of up to 18,213,311 Common Shares pursuant to the Acquisition. Due to the fact that the Insiders are each a "related party" of the Corporation pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the acquisition by the Corporation of the Insiders' interests in the Assets are each a "related party transaction" pursuant to MI 61-101.  The Corporation will adhere to the requirements of MI 61-101 in closing the Acquisition, including, but not limited to, obtaining the appropriate shareholder approvals.

The completion of the Acquisition is subject to the approval of TSX Venture Exchange and all other necessary regulatory approvals. In addition, the completion of the Acquisition is subject to several conditions, including the satisfactory completion of due diligence and title reviews by the Corporation, approval of the board of directors of the Corporation of the definitive agreement and certain other conditions.

Area Activity

Several producing wells have recently been drilled and completed in the Bakken Shale in the vicinity of the Company's Montana Bakken acreage.   There is production to the south, recently reported by Brigham Exploration on the Gobbs 17-8 #1H well located in Section 17-Township 28 North, Range 57 East, with initial production of 1,818 barrels of oil equivalent ("BOE") per day and the #1-H Swindle well, located in Section 16-Township 28 North, Range 57 East, Roosevelt County, MT, with initial production of 1,065 BOE per day.  Production is reported to the north on the Taqa North USA, Inc Hellegaard #9-12H, located in Section 9-Township 37 North, Range 57 East, Sheridan County, MT,  a 640 acre horizontal well with initial production of 433 BOE per day.  Production is reported to the east on a 640 acre horizontal well drilled by GeoResources, Inc, being the Carlson 1-11H located in Section 11-Township 57 North, Range 103 West, Williams County, ND, with initial production of 685 BOE per day.

Company Strategy

The Company's strategy is to grow through acquiring more Williston Basin acreage; targeting the Bakken/Three Forks Shale and developing the acreage in the Company's portfolio.   We plan to drill and complete horizontal wells on the Company's existing acreage, as well as aggressively pursuing non-operated working interests in Bakken and Three Fork wells 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 play.

For further information, please contact:

"Patrick M. Montalban"

Patrick M. Montalban
President & Chief Executive Officer

MOUNTAINVIEW ENERGY LTD.
PO Box 200
Cut Bank, MT 59427

E-Mail: [email protected]
Web Site: www.mountainviewenergy.com
Phone: (406) 873-2235 Fax: (406) 873-2835

FORWARD LOOKING STATEMENTS:

This press release contains forward looking statements. More particularly, this press release contains statements concerning the anticipated closing date of the Acquisition and future operational plans. Readers are cautioned that the foregoing list should not be construed as exhaustive.

Although Mountainview believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Mountainview can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures) and the failure to realize the expected benefits of the Acquisition. The closing of the Acquisition could be delayed if Mountainview is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The Acquisition will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the Acquisition will not be completed within the anticipated time or at all.

The forward looking statements contained in this press release are made as of the date hereof and Mountainview undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Initial Production

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 commence production and decline thereafter. Additionally, such rates may also include recovered "load" fluids used in well completion stimulation. Readers are cautioned not to place reliance on such rates.

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, the reservoir data and economics information relating to the areas in geographical proximity to prospective exploratory lands to be held by Mountainview.  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. Some of such information is not derived from the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and have therefore not been prepared in accordance with NI 51-101. Mountainview is also unable to confirm that the analogous information was prepared by a qualified reserves evaluator or auditor. Such information is not an estimate of the 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.

Boes

All calculations converting natural gas to barrels of oil equivalent ("boe") have been made using a conversion ratio of six thousand cubic feet (six "Mcf") of natural gas to one barrel of oil, unless otherwise stated. The use of boe may be misleading, particularly if used in isolation, as the conversion ratio of six Mcf of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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.