posted in:

Mountainview Energy Ltd. provides operational update on its 12 Gage Project in the Williston Basin

Tuesday, Jan 08, 2013

CUT BANK, MT, Jan. 7, 2013 /CNW/ - Mountainview Energy Ltd. (TSXV: MVW) ("Mountainview" or the "Company") is pleased to provide an operational update.

Operational Update - 12 Gage Project

Wigness 5-8-1H, Section 5 & 8 T162N-101W, Divide County, North Dakota

The completion program on the Wigness 5-8-1H (the "Wigness Well"), a horizontal Three Forks well, began on the morning of December 29, 2012, with the commencement of a 26-stage fracture treatment. The Company used the "Plug and Perforate" method   and completed fracing operations on January 2, 2013.  Sanjel performed the fracing operations and successful fracture treatment was achieved at each stage without any difficulties.    The Wigness Well is currently flowing back and the Company intends announce an initial production rate by the end of January.

Through its wholly-owned subsidiary Mountain Divide, LLC ("Mountain Divide"), the Company 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 previously announced credit facility (the "Facility"), all of Mountain Divide's oil and gas properties located in Divide County, North Dakota (including the lands in the 12 Gage Project) are subject to a 39% after pay-out net profits interest (the "NPI") held by Mountain Divide's lender under the Facility (the "Lender"). The NPI is defined as all revenues received by Mountain Divide, less all operating costs, production taxes, and capital costs incurred by Mountain Divide. Payments on the NPI shall commence upon repayment in full of the outstanding Facility. Pursuant to the agreements underlying the Facility, the NPI 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 Company spudded the well on December 12, 2012 and completed drilling operations on the Leininger 3-10-1H well (the "Leininger Well") on December 28, 2012 to a Total Depth of 18,440'.   The Company is preparing the Leininger Well for a 26 stage fracture stimulation, which will commence on January 25, 2013.

Total operational days from spudding the well to releasing the rig was 16
days---3 days less than the Wigness well and Mountainview plans to complete the Leininger Well by the end of January, 2013.  The Leininger Well is the second Bakken/Three Forks well in the three well winter drilling program on Mountainview's 12 Gage Project. The Leininger Well is located approximately 2 miles east of the Wigness Well.  Through Mountain Divide, the Company holds a 87.47% working interest in the Leininger Well, 3 to 4% 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. The Leininger Well is also subject to the NPI.

Olson 35-26-1H, Section 35 & 26 T163N-R101W, Divide County, North Dakota

Mountainview has rigged up Nabors 460 on the Olson 35-26-1H (the "Olson Well") location. The Olson Well is the final well planned for the three-well winter drilling program on Mountainview's 12 Gage Project and is located approximately 2-3 miles north-east of the Leininger Well.  To date, the Company has drilled and cemented 9 5/8" surface casing to 1435'.  Through Mountain Divide, the Company holds a 60.07% working interest in the Olson Well, 3 to 4% 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. The Olson Well is also subject to the NPI.

About Mountainview

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.

To access over 3,000 of the latest oil projects from across the world visit Projects OGP for free trial today

posted in:

Other Project News

Shell announces Malaysia deep-water gas discovery 17-04-2014
Octagon 88 Resources announces Red Earth light oil project update 16-04-2014
Lamprell has received a new contract award for the construction and delivery of two Mobile Offshore Drilling Platforms 16-04-2014
New Dragados offshore contract secured for IKM Testing 16-04-2014
Ezion Secures a contract with an approximate value of USD43.7 million over a 3 year period to provide a service rig to support a South Asian Based Nat 16-04-2014
Ezion Secures a contract with a value of approximately USD35 million over a 3 year period to provide a service rig to support a middle eastern state 16-04-2014
Foster Wheeler awarded contract for incinerator in Vietnam 15-04-2014
Contract extension for Safe Hibernia 15-04-2014
Aker Solutions Wins Contract to Deliver Subsea Production System for Total's Kaombo Development in Angola 15-04-2014
Magnolia LNG Project technical services agreement signed with SKEC Group 14-04-2014

Advertisers





[