Mountainview Energy Ltd. announces production rate for the Charlotte 1-12-1H of 598 boe/d for initial 7 days
CUT BANK, MT, Dec. 4, 2013 /CNW/ - Mountainview Energy Ltd. (TSXV: MVW.V) ("Mountainview" or the "Company") is pleased to provide an operational update on its 2013 drilling program in Mountainview's 12 Gage project in the Williston Basin.
Charlotte 1-12-1H, Section 1 & 12 T162-R101W, Divide County, North Dakota
Mountainview is pleased to announce that it has placed the Charlotte 1-12-1H, (the "Charlotte Well") well on production with artificial lift. The Charlotte Well, which is the Company's third Three Forks well of its summer three-well drilling program was completed using a 32-stage plug and perforation program. The Company's previous 5 operated wells were completed using 26-stages. According to field estimates, the initial 7-day average production for the Charlotte Well, which is still recovering frac load water, was 598 boe/d gross (417 boe/d net), comprised of 90% oil. The Charlotte Well has produced for approximately 30 days averaging 550 boe/d gross (384 boe/d net), comprised of 90% oil. The Charlotte is the third successive well to exceed initial production expectations and is the Company's highest producing well thus far.
Mountainview Operational / Production Update
The Company now has six wells from its 2013 drilling program in Divide County, ND in its 12 Gage Project on production, with a current production rate of 1,652 boe/d gross (1,243 boe/d net). The Company's total corporate production is approximately 1,802 boe/d gross (1,393) boe/d net.
Patrick Montalban, President & CEO of Mountainview Energy commented on the completion of the drilling program: "In executing the 2013 summer drilling program, the Company achieved a 25% reduction in drilling and completion costs and increased production levels by 30% to 40%, when compared to the previous three well program. Work continues on reducing monthly operating expenses by cutting workover and water disposal costs leading to increased proved producing reserves and thus value to the shareholder."
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.
Certain information contained in this press release constitutes forward-looking statements, including, without limitation, information related to Mountainview's operational plans and expectations with respect to production levels and the efforts of the Company to reduce costs, increase reserves and enhance shareholder value. 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.
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.
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