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SOURCE Mountainview Energy Ltd.
TORONTO, March 19, 2013 /PRNewswire/ - Mountainview Energy Ltd. (TSXV: MVW) ("Mountainview" or the "Company") is pleased to provide an operational update on Mountainview's 12 Gage
Project in the Williston basin:
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The Company installed an artificial lift system on the Wigness 5-8-1H
well (the "Wigness Well"), the Company's first horizontal Three Forks well in its three-well
winter drilling program. The Wigness well, which was put on production
on February 16, 2013, has produced intermittingly because of gas lock
issues and the Company is currently evaluating options to curtail this
problem. During this period of time the well produced for 7 days and
averaged 396 bopd, 195 mcfd, and 748 bwpd. The peak production rate
on the Wigness well was 613 bopd, 383 mcfd and 1,547 bwpd.
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The Leininger 3-10-1H well (the "Leininger Well"), the second horizontal Three Forks well in Mountainview's three-well
winter drilling program, flowed for three days during the completion
program at an average rate of 380 bopd, 230 mcfd, and 1,088 bwpd. The
Company proceeded with the completion program by moving a service rig
onto the well and milled out the 25 bridge plugs from the plug and perf
fracture stimulation. After cleaning the well out properly the Company
installed an artificial lift system and placed the well on production
on March 14, 2013. Since the well has been on production it has
averaged 348 bopd, 636.5 mcfd, and 772 bwpd. The peak production rate
on the first day of production was 557 boe/d, comprised of 427 bopd,
838 mcfd, and 1,004 bwpd.
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Mountainview has completed the 26 stage plug and perf fracture
stimulation on the Olson 35-26-1H well (the "Olson Well"), the final horizontal Three Forks well in its three-well winter
drilling program, which is located approximately 2-3 miles north-east
of the Leininger Well. The Company commenced the completion program
and a service rig milled out the 25 bridge plugs from the plug and perf
fracture stimulation. After completing the clean-out of the well, the
Company plans to install an artificial lift system and place the well
on production.
Through its wholly-owned subsidiary Mountain Divide, LLC ("Mountain Divide"), Mountainview holds: (a) a 93.75% working interest in the Wigness
Well, 25% of which is subject to reversion to another working interest
owner following payout of 100% of the cost of their proportionate
working interest costs in the well plus a 200% penalty; (b) an 87.51%
working interest in the Leininger Well, 3.12% of which is subject to
reversion to another working interest owner following payout of 100% of
the cost of their proportionate working interest costs in the well plus
a 200% penalty; and (c) a 62.27% working interest in the Olson Well,
16.37% of which is subject to reversion to another working interest
owner following payout of 100% of the cost of their proportionate
working interest costs in the well plus a 200% penalty. Pursuant to Mountain Divide's credit facility (the "Facility"), all of Mountain Divide's oil and gas properties located in Divide
County, North Dakota (including the lands on which the Wigness Well,
the Leininger Well and the Olson Well are situated) are subject to a
39% after pay-out net profits interest held by Mountain Divide's lender
under the Facility. These payments shall not commence until repayment
in full of the outstanding Facility and will automatically reduce to
20% once the Lender achieves a 1.65 x return on investment.
About Mountainview
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.
CAUTIONARY STATEMENTS
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. 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.
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 or the Borrower. 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.
Forward-Looking Statements
Certain information contained in this press release constitutes
forward-looking statements, including, without limitation, information
related to the initial production rates, the expected date of
operations on the Company's properties and other matters. 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.
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.
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