CUT BANK, MT, July 7, 2015 /CNW/ - Mountainview Energy, Ltd. ("Mountainview" or the "Company") (TSX-V: MVW) announces the Credit Facility issued to a wholly owned subsidiary of Mountainview, Mountain Divide, LLC, with outstanding principal in the amount of $49,000,000 has matured and remains unpaid as of July 1, 2015. Mountainview has previously disclosed certain Credit Facility covenant breaches and default events in its year end 2014 and first quarter 2015 financial statements. Although the lending bank has not enacted any of its remedies in relation to the current and past default events, it has specifically reserved all of its available rights and remedies under the agreement.
Mountainview's executive team continues ongoing negotiations with all creditors of the Company, including the issuing bank of the above referenced Credit Facility. Negotiations are focused on a comprehensive solution which would provide the Company with the ability to sustain current operations. During this period of negotiation, Mountainview continues its focus on maintaining production and reducing operating and general and administrative costs in the current depressed commodity price environment.
Mountainview cautions that there are no assurances that such negotiations will yield satisfactory results for the Company and its stakeholders.
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.
Forward-Looking and Cautionary Statements
This news release contains forward-looking statements relating to negotiations with a lender. These forward-looking statements may include opinions, assumptions, estimates and management's assessment of future plans and operations.
Forward-looking statements typically use words such as "will", "anticipate", "believe", "estimate", "expect", "intend", "may", "project", "should", "plan", and similar expressions suggesting future outcomes, and include statements that actions, events or conditions "may", "would", "could", or "will" be taken or occur in the future. The forward-looking statements are based on various assumptions including expectations regarding the nature and success of negotiations. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward-looking statements are subject to a wide range of assumptions, known and unknown risks and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including the Company's possible inability to negotiate acceptable terms with current and future lenders; general economic conditions; failure to meet credit facility covenants; and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.
Although Mountainview believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not rely unduly on forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by applicable law, Mountainview does not undertake any obligation to publicly update or revise any forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Mountainview Energy Ltd.
For further information: Patrick M. Montalban, President & Chief Executive Officer, E-Mail: [email protected], Fax: (406) 873-2835; Katherine Hylland, Interim Vice President Finance & Chief Financial Officer, E-Mail: [email protected], Phone: (406) 969-5590