Mountainview Energy Ltd (MVW.V) Announces Initial Production Test of 442 Boe/d in the Williston Basin
TORONTO, Feb. 5, 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.
Wigness 5-8-1H, Section 5 & 8 T162N-101W, Divide County, North Dakota
Upon completion of the successful fracing operations 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, Mountainview conducted a 6-day production/flow test. During the 6 day period the well flowed on a 32/64" choke and the well averaged 355 barrels of oil per day, 228 mcf of gas per day and 998 barrels of water per day. The peak production rate on the 6th day was 383 barrels of oil per day, 352 mcf of gas per day and 1,212 barrels of water per day. The Company plans to install an artificial lift system in the next three to five days with a view to putting the well on production.
Through its wholly-owned subsidiary Mountain Divide, LLC ("Mountain Divide"), Mountainview holds 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. 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 is situated) are subject to a 39% after pay-out net profits interest held by Mountain Divide's lender under the Facility, which 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.
Leininger 3-10-1H, Section 3 & 10 T162N-R101W, Divide County, North Dakota
The completion program for Leininger 3-10-1H well (the "Leininger Well"), the second horizontal Three Forks well in Mountainview's three-well winter drilling program was pushed back due to cold weather and timing issues with Sanjel. Completion operations on the the Leininger Well commenced on February 1, 2013, with a 26-stage fracture stimulation. To date, the Company has successfully completed the 26 stage fracture stimulation and is currently moving Sanjel off location. The Company will start to flow back the Leininger well on the morning of February 6, 2013.
Olson 35-26-1H, Section 35 & 26 T163N-R101W, Divide County, North Dakota
Mountainview has completed drilling operations with reaching a total depth of 18,416' on the Olson 35-26-1H (the "Olson Well") location. The Olson Well is the final well planned for the three-well winter drilling program on Mountainview's 12 Gage Project and is located approximately 2-3 miles north-east of the Leininger Well. The Olson well was drilled in 16 days, which is the same amount of time it took to drill the Leininger Well. The 4 ½" frac string has successfully been ran in the hole and successfully pressure tested. The completion program on the Olson well is scheduled to commence at the end of February, 2013, with a 26-stage fracture treatment and Mountainview will provide an update when appropriate.
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.
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.
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