CUT BANK, MT,
Oct. 28, 2013 /PRNewswire/ -
Mountainview Energy Ltd. (TSXV: MVW.V) (OTCQX: MNVWF)
("Mountainview" or the "Company") is pleased to
provide an operational update on the 2013 summer drilling program
in the Williston Basin.
Operational Update
Mountainview has now completed its second
drilling program in 2013 on the 12 Gage Project. With the
completion of this latest program, the Company operates 4.3 net
wells (6.0 gross wells) in the project and approximately 35%-40% of
the project lands are held by production. Based on field
production numbers, the Company averaged 890 barrels of oil
equivalent ("boe") per day ("boe/d") gross (715 boe/d
net) of 90% oil for the first 15 days of October in its 12 Gage
project with 4 wells producing. Overall Mountainview has seen
its overall corporate production increase by 290% on both a gross
and net basis since the beginning of 2013.
The Company achieved its goal of reducing
drilling and completion costs from $7.5-8.0
million on its initial 2013 drilling program in the 12 Gage
Project to approximately $6.5 million
for the summer drilling program.
The Company is also pleased to announce that
Nick Timm has joined the
Mountainview team as a full time Field Supervisor for the 12 Gage
Project. Mr. Timm, who was previously employed by a reputable
operator in the area, brings nearly 10 years of operational
field-based experience to the team.
Mountainview has increased its artificial lift
capabilities on all of its operated Three
Forks wells by deploying an ESP (Electric Submersible Pump)
in each well. This artificial lift change in the wells has
increased production in the first three wells of the 2013 drilling
program by approximately 35% and is expected to have a significant
positive impact on production levels for the three 'new' wells; the
Heckman 7-6-1H, the Olson 2-11S-1H and the Charlotte 1-12-1H..
Heckman 7-6-1H, Section 7 & 6 T162N-101W,
Divide County, North
Dakota
The Heckman 7-6-1H well (the "Heckman
Well"), the Company's first Three
Forks well of its three-well summer drilling program was
drilled to a total depth of 18,165' in 19 days. A 26-stage
plug and perf fracture stimulation was successfully completed and
the well was cleaned out and placed on production. The milling of
the plugs and clean-out of the well was accomplished in 14-days
compared to the 30-days experienced with the wells during the
previous program. The initial 7 day average production on
this well was 532 boe/d gross (477 boe/d net) of 90% oil. The
Heckman Well, which is still recovering frac load water, has
produced for approximately 30 days averaging 441 boe/d gross (396
boe/d net) of 90% oil over that period. This well has
exceeded Company production expectations thus far.
Olson 2-11S-1H, Section 2 & 11 T162-101W,
Divide County, North
Dakota
The Olson 2-11S-1H, (the "Olson 2 Well"),
the Company's second Three Forks
well of its summer three-well drilling program, was drilled to a
total depth of 18,888' in 16 days. The Company successfully
completed the 26-stage plug and perf fracture stimulation and
placed the well on production on Oct. 16,
2013. The milling of the plugs and the clean-out of
the wells was accomplished in 12 days. Fluid production
results of the initial flowback of the well during the cleanout
were very encouraging. The Company will give an update once a
stable production rate is established.
Charlotte 1-12-1H, Section 1 & 12
T162-R101W, Divide County, North
Dakota
The Charlotte 1-12-1H, (the "Charlotte
Well"), the Company's third Three
Forks well of its summer three-well drilling program, was
drilled to a total depth of 19,000' in 14 days. Mountainview
successfully completed the well with a 32-stage plug and perf
fracture stimulation and flowed back the well. The Company
has currently just completed the clean out operations and is
starting to place the well on production. The Charlotte well
is the Company's first well to be completed with a 32-stage
fracture stimulation and the company still plans to meet its
projected drilling and completion budget of $6.5MM on this well.
Management's Comments
Patrick
Montalban, President and CEO of Mountainview said
"Management is very encouraged by the success of the 2013 summer
drilling program. We attribute this success to the in-house
engineering staff, newly hired field superintendent and consistent
consultant field supervision, who all contributed to decreasing
costs and increasing operating efficiency and production.
With the completion of the summer drilling program and the
artificial lift enhancement operations we have undertaken, we are
quickly building each of our knowledge base and operational
capabilities with these assets, which will drive our daily
production and reserve base for our shareholders."
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
Forward-Looking Statements
Certain information contained in this press
release constitutes forward-looking statements, including, without
limitation, information related to Mountainview's operational plans
and the timing of operations on certain wells, the impact of such
operations on production and other expectations with respect to
production and reserves expectations. 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.
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.
Barrels of Oil Equivalent
Barrels of oil equivalent (boe) is calculated
using the conversion factor of 6 Mcf (thousand cubic feet) of
natural gas being equivalent to one barrel of oil (bbl). Boes
may be misleading, particularly if used in isolation. A boe
conversion ratio of 6 Mcf: 1 Bbl 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
ratio of ^ Mcf: 1 Bbl, utilizing a conversion on a 6:1 basis may be
misleading as an indication of value.
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.