/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY UNITED STATES NEWS SERVICES. ANY FAILURE
TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S.
SECURITIES LAW./
CUT BANK, MT,
Nov. 20, 2014 /CNW/ - Mountainview
Energy Ltd. (TSXV: MVW) ("Mountainview" or the
"Company") provides an operational update on its recent
three-well drilling program.
BJNJ Well Pad (BJNJ 30-31-1H & BJNJ 19-18N-1H)
The Company has successfully drilled the BJNJ 30-30-1H well (the
"BJNJ 30 well") and the BJNJ 19-18-1H (the "BJNJ 19
well") on its BJNJ well pad on the western side of the
Company's 12 Gage core area in Divide County, N.D. The BJNJ
30 well was drilled to a total depth of 17,927 feet, including a
horizontal lateral of 9,453 feet within the Three Forks (Torquay) formation. The second well on the
pad, the BJNJ 19 well was drilled to a depth of 18,800 feet
including a 10,100 foot horizontal lateral within the Three Forks (Torquay) formation. Each of these wells
were drilled (spud to rig release) in less than 18 days with Nabors
USA Drilling Rig #165.
The BJNJ 30 well was completed with a 36 stage fracture
treatment using 3.7 million pounds of proppant and an updated
fracture stimulation design. The BJNJ 30 well averaged 552
barrels of oil equivalent per day ("boe/d") (348 boe/d net
to the Company before royalties), 89% oil, in its first 30 days of
production. Within this 30 day period, a peak 1-day rate of
700 boe/d (441 boe/d net to the Company before royalties) and a 7
day consecutive production rate of 623 boe/d (392 boe/d net to the
Company before royalties) were recorded. This 7 day peak rate
is a 17% increase and the 30 day rate is a 29% increase over the
corresponding production rates in the direct (south) offset well in
the 12 Gage Projects (Heckman 7-6-1H). The current estimated
cost to drill, complete, and install surface facilities for the
BJNJ 30 well is $5.8 million which is
11% below the original $6.5 million
cost estimate for this well. The BJNJ 19 well is currently awaiting
completions operations and is on target to meet the original
$6.5 million cost estimate for the
well.
Aaberg Well Pad (Aaberg 8-5N-1H)
The Company has also successfully drilled the Aaberg 8-5N-1H
well (the "Aaberg 8 well") on the Aaberg well pad on the
eastern side of its core 12 Gage asset in Divide County, N.D.
The Aaberg 8 well was successfully drilled to a total depth of
19,150 feet including a lateral section of 10,030 feet in
pay. The Aaberg 8 well was drilled in 14 days. This
well is now standing awaiting completion operations and is on
target to meet the original $6.5
million cost estimate for the well.
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.
READER ADVISORIES
This news release contains forward-looking statements. More
particularly, this news release contains statements concerning
operating results, future operations and production data from
certain wells. The forward-looking statements contained in this
document are based on certain key expectations and assumptions made
by Mountainview, including: (i) with respect to capital
expenditures, the availability of adequate and secure sources of
funding; (ii) with respect to operational plans, the availability
of drilling rigs, expectations and assumptions concerning the
success of future drilling and development activities and
prevailing commodity prices; (iii) with respect to the performance
of personnel, the availability of capital and prevailing commodity
prices; (iv) with respect to anticipated production, the ability to
drill and operate wells on an economic basis, the performance of
new and existing wells and accounting risks typically associated
with oil and gas exploration and production; (v) oil and gas
prices; (vi) currency exchange rates; (vii) royalty rates; (viii)
operating costs; (ix) transportation costs; and * the availability
of opportunities to deploy capital effectively.
Although Mountainview believes that the expectations and
assumptions on which the forward-looking statements are based are
reasonable, undue reliance should not be placed on the
forward-looking statements because Mountainview can give no
assurance that they will prove to be correct. Since forward-looking
statements address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of factors and risks. These include, but are not
limited to, the failure to obtain necessary regulatory approvals;
risks associated with the oil and gas industry in general (e.g.,
operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of
reserve estimates; the uncertainty of estimates and projections
relating to production, costs and expenses; health, safety and
environmental risks; commodity price and exchange rate
fluctuations; and uncertainties resulting from potential delays or
changes in plans with respect to exploration or development
projects or capital expenditures). Readers are cautioned that
the foregoing list is not exhaustive of all possible risks and
uncertainties.
The forward-looking statements contained in this document are
made as of the date hereof and Mountainview undertakes no
obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise.
All calculations converting natural gas to barrels of oil
equivalent ("boe") have been made using a conversion ratio of six
thousand cubic feet (six "Mcf") of natural gas to one barrel of
oil, unless otherwise stated. The use of boe may be misleading,
particularly if used in isolation, as the conversion ratio of six
Mcf of natural gas to one barrel of oil 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.
Any references in this news release to initial, early and/or
test or production/performance 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.
THIS NEWS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR A
SOLICITATION OF ANY OFFER TO BUY THE SECURITIES IN THE UNITED STATES. THE SECURITIES OFFERED HAVE
NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT
OF 1933 AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN
APPLICABLE EXEMPTION FROM REGISTRATION REQUIREMENTS OF SUCH
ACT.
SOURCE Mountainview Energy Ltd.