Mountainview Energy Ltd provides operational update - Initial production rate is 1,157 boe/d for horizontal Bakken well drilled in Divide County, ND in the Williston Basin

CUT BANK, MT, March 19, 2012 /PRNewswire/ - Mountainview Energy Ltd. (TSXV: MVW) ("Mountainview" or the "Company") is pleased to provide an operational update on the completion of the Wolter 13-23H  horizontal Bakken well in the Section 23-T163N-R100W, Divide County, North Dakota by SM Energy Company ("SM Energy"), a public company traded on the New York Stock Exchange.  Drilling and fracturing operations on the Wolter 13-23H well are complete and the well is currently producing.  The Wolter 13-23H has recently been taken off of the confidential list.  The initial production rate was 1,157 barrels of oil equivalent ("boe") per day.* This initial production was made up of 996 barrels of oil, 964 Mcf of natural gas and 550 barrels of water.  The well has produced for approximately 60 days and has produced 34,836 barrels of oil and 33,602 Mcf of gas.  The 60-day average production rate for the Wolter 13-23H well is approximately 674 boe/d with 581 bbl/d oil and 560 Mcf/d of gas.  Mountainview owns approximately a 3.25% working interest in the Wolter 13-23H well.

Mountainview is also pleased to announce that the Olson 1-21-16H well has had a 60-day average production rate of approximately 272 boe/d with 241 bbl/d of oil and 187 Mcf/d of gas.  Mountainview owns a 12.5% working interest in this well.  The Olson 1-21-16H is a horizontal Bakken well located in Roosevelt County, MT and is operated by G3 Operating, a subsidiary of GeoResources, Inc, a public company traded on the NASDAQ.

The Company has acquired approximately a 9.75% working interest in the Samson Resources ("Samson") Zuma 15-22-35-58H well located in section 15-T35N-58E, Sheridan County, Montana.  Drilling operations on the Zuma well are complete and the well is currently waiting to be completed.

The Company's current non-operated wells in the Williston Basin are as follows:

*The initial production rates expressed in this press release are the 24-hour "Peak Production Rate" of the relevant well.  Peak Production Rates may be established following the initial day of production depending on operator design or well flow-back profiles.  The initial production rate may be estimated based on other third party estimates or limited data available at this time. The initial production is estimated using barrels of oil equivalent. Any references in this news release to initial, early and/or final raw 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.

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.   Mountainview plans 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.

Forward-Looking Statements

Certain information contained in this press release constitutes forward-looking statements, including, without limitation, information related to Mountainview's participation in certain wells, the timing of spudding, fracturing and other operations on certain wells, the timing of well results and area activity in both the Williston Basin and the South Alberta Bakken plays.  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.

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.

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.

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.  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. 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.  

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.