TORONTO, Feb. 5, 2013 /PRNewswire/ - Mountainview Energy Ltd. (TSXV: MVW) ("Mountainview" or the "Company") is pleased to provide an operational update on Mountainview's 12 Gage Project in the Williston basin.
Wigness 5-8-1H, Section 5 & 8 T162N-101W, Divide County, North Dakota
Upon completion of the successful fracing operations on the Wigness 5-8-1H well (the "Wigness Well"), the Company's first horizontal Three Forks well in its three-well winter drilling program, Mountainview conducted a 6-day production/flow test. During the 6 day period the well flowed on a 32/64" choke and the well averaged 355 barrels of oil per day, 228 mcf of gas per day and 998 barrels of water per day. The peak production rate on the 6th day was 383 barrels of oil per day, 352 mcf of gas per day and 1,212 barrels of water per day. The Company plans to install an artificial lift system in the next three to five days with a view to putting the well on production.
Through its wholly-owned subsidiary Mountain Divide, LLC ("Mountain Divide "), Mountainview holds a 93.75% working interest in the Wigness Well, 25% of which is subject to reversion to another working interest owner following payout of 100% of the cost of their proportionate working interest costs in the well plus a 200% penalty. Pursuant to Mountain Divide's credit facility (the "Facility"), all of Mountain Divide's oil and gas properties located in Divide County, North Dakota (including the lands on which the Wigness Well is situated) are subject to a 39% after pay-out net profits interest held by Mountain Divide's lender under the Facility, which payments shall not commence until repayment in full of the outstanding Facility and will automatically reduce to 20% once the lender achieves a 1.65 x return on investment.
Leininger 3-10-1H, Section 3 & 10 T162N-R101W, Divide County, North Dakota
The completion program for Leininger 3-10-1H well (the "Leininger Well"), the second horizontal Three Forks well in Mountainview's three-well winter drilling program was pushed back due to cold weather and timing issues with Sanjel. Completion operations on the the Leininger Well commenced on February 1, 2013, with a 26-stage fracture stimulation. To date, the Company has successfully completed the 26 stage fracture stimulation and is currently moving Sanjel off location. The Company will start to flow back the Leininger well on the morning of February 6, 2013.
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.
SOURCE Mountainview Energy Ltd.
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