CUT BANK, MT, April 18, 2012 /CNW/ - Mountainview Energy Ltd. ("Mountainview" or the "Company") (TSXV: MVW) is pleased to announce that it has entered into an agreement with First Interstate Bank (the "Bank") pursuant to which the Bank has agreed to provide Mountainview with a USD$5.5 million, one-year revolving line of credit (the "Facility"). The Facility is renewable annually. Amounts borrowed under the Facility will bear interest at a floating rate based on the applicable U.S. prime rate plus between 1.25% (subject to a rate floor of 5.25%). The Company will be required to pay a 1.0% origination fee for the Facility.
Mountainview intends to use the Facility to: (a) repay the outstanding principal and interest amounts owing to an affiliate of an insider of the Company (the "Lender") under a loan agreement pursuant to which Mountainview borrowed USD$2.0 million from at an annual interest rate of 8.0% on January 12, 2012; (b) fund its exploration and development activities particularly with respect to its emerging plays, including the Bakken and Three Forks Shale in the Williston Basin and the South Alberta Bakken play; and (c) for general corporate purposes.
Mountainview 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 play.
Forward Looking Statement Disclaimer and Other Cautionary Statements
This press release contains forward looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "approximate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions. More particularly, this press release contains statements concerning the anticipated use of funds from the Facility and certain related matters. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control, and may be based on assumptions that could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Although Mountainview believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them 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. Mountainview may not be able to obtain the necessary shareholder, regulatory and stock exchange approvals on the timelines it has planned or at all. The transactions to be considered at the Meeting will not be completed at all if these approvals are not obtained. Accordingly, there is a risk that such transactions will not be completed within the anticipated time or at all.
The forward looking statements contained in this press release are made as of the date hereof and Mountainview undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available.
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.
For further information:
Patrick M. Montalban
President & Chief Executive Officer
MOUNTAINVIEW ENERGY LTD.
PO Box 200
Cut Bank, MT 59427