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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.
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.
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.
For further information: Patrick M. Montalban, President & Chief Executive Officer, E-Mail: [email protected], Fax: (406) 873-2835; Brent Osmond, Vice President Finance & Chief Financial Officer, E-Mail: [email protected], Phone: (403) 999-8511