CUT BANK, MT, March 21 /PRNewswire-FirstCall/ - Mountainview Energy Ltd. (TSXV: MVW) ("Mountainview" or the "Company") is pleased to announced that it has acquired (the "Acquisition") a 12.5% working interest in certain lands in the Williston Basin in Montana, comprised of 160 acres (net) of a 1,280 acre spacing unit (the "Lands"). The Lands were purchased from a private company owned by a related party of the Company (the "Vendor"). Pursuant to the Acquisition, Mountainview acquired the Lands for aggregate consideration of $160,000, being the same price on a per acre basis that the operator of the Lands recently acquired its interest in the Lands in an arm's length transaction.
Mountainview is also pleased to announce its participation in the drilling of the Olson 1-21-16H, a horizontal Bakken well located on the Lands in the SESE-Section 21-Township 29 North, Range 57 East, Roosevelt County, Montana (the "Well"). Mountainview will own a 12.5% working interest in the Well, which is being drilled by G3 Operating LLC ("G3"), a subsidiary of GeoResources, Inc., a U.S. Public Company traded on NASDAQ. Once completed, G3 will operate the Well. The anticipated total depth of the Well is 19,420 feet with a total horizontal leg in the Bakken Shale of 1,280 acres (approximately 10,500 feet).
Due to the fact that the Vendor is a "related party" of the Company pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the Acquisition is a "related party transaction" pursuant to MI 61-101. The Company is relying on the exemptions from the formal valuation and minority approval requirements of MI 61-101 found in subsection 5.5(a) and 5.7(a) of MI 61-101, pursuant to which a formal valuation and minority approval are not required in the event that at the time the transaction is agreed to, neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves interested parties, exceeds 25 per cent of the issuer's market capitalization.
Mountainview is a junior 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 Basin.
Certain information contained in this press release constitutes forward-looking statements, including, without limitation, information related to Mountainview's participation in the Well and the timing, operatorship and depth of the Well. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the party'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.
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.