Mountainview Energy Ltd. Provides Operational Update on its 12 Gage Project in the Williston Basin

CUT BANK, MT, Oct. 28, 2013 /CNW/ - Mountainview Energy Ltd. (TSXV: MVW.V) ("Mountainview" or the "Company") is pleased to provide an operational update on the 2013 summer drilling program in the Williston Basin.

Operational Update

Mountainview has now completed its second drilling program in 2013 on the 12 Gage Project.  With the completion of this latest program, the Company operates 4.3 net wells (6.0 gross wells) in the project and approximately 35%-40% of the project lands are held by production.  Based on field production numbers, the Company averaged 890 barrels of oil equivalent ("boe") per day ("boe/d") gross (715 boe/d net) of 90% oil for the first 15 days of October in its 12 Gage project with 4 wells producing.  Overall Mountainview has seen its overall corporate production increase by 290% on both a gross and net basis since the beginning of 2013.

The Company achieved its goal of reducing drilling and completion costs from $7.5-8.0 million on its initial 2013 drilling program in the 12 Gage Project to approximately $6.5 million for the summer drilling program.

The Company is also pleased to announce that Nick Timm has joined the Mountainview team as a full time Field Supervisor for the 12 Gage Project.  Mr. Timm, who was previously employed by a reputable operator in the area, brings nearly 10 years of operational field-based experience to the team.

Mountainview has increased its artificial lift capabilities on all of its operated Three Forks wells by deploying an ESP (Electric Submersible Pump) in each well.  This artificial lift change in the wells has increased production in the first three wells of the 2013 drilling program by approximately 35% and is expected to have a significant positive impact on production levels for the three 'new' wells; the Heckman 7-6-1H, the Olson 2-11S-1H and the Charlotte 1-12-1H..

Heckman 7-6-1H, Section 7 & 6 T162N-101W, Divide County, North Dakota

The Heckman 7-6-1H well (the "Heckman Well"), the Company's first Three Forks well of its three-well summer drilling program was drilled to a total depth of 18,165' in 19 days.  A 26-stage plug and perf fracture stimulation was successfully completed and the well was cleaned out and placed on production. The milling of the plugs and clean-out of the well was accomplished in 14-days compared to the 30-days experienced with the wells during the previous program.  The initial 7 day average production on this well was 532 boe/d gross (477 boe/d net) of 90% oil.  The Heckman Well, which is still recovering frac load water, has produced for approximately 30 days averaging 441 boe/d gross (396 boe/d net) of 90% oil over that period.  This well has exceeded Company production expectations thus far.

Olson 2-11S-1H, Section 2 & 11 T162-101W, Divide County, North Dakota

The Olson 2-11S-1H, (the "Olson 2 Well"), the Company's second Three Forks well of its summer three-well drilling program, was drilled to a total depth of 18,888' in 16 days.  The Company successfully completed the 26-stage plug and perf fracture stimulation and placed the well on production on Oct. 16, 2013.  The milling of the plugs and the clean-out of the wells was accomplished in 12 days.  Fluid production results of the initial flowback of the well during the cleanout were very encouraging.  The Company will give an update once a stable production rate is established.

Charlotte 1-12-1H, Section 1 & 12 T162-R101W, Divide County, North Dakota

The Charlotte 1-12-1H, (the "Charlotte Well"), the Company's third Three Forks well of its summer three-well drilling program, was drilled to a total depth of 19,000' in 14 days.  Mountainview successfully completed the well with a 32-stage plug and perf fracture stimulation and flowed back the well.  The Company has currently just completed the clean out operations and is starting to place the well on production.  The Charlotte well is the Company's first well to be completed with a 32-stage fracture stimulation and the company still plans to meet its projected drilling and completion budget of $6.5MM on this well.

Management's Comments

Patrick Montalban, President and CEO of Mountainview said "Management is very encouraged by the success of the 2013 summer drilling program.  We attribute this success to the in-house engineering staff, newly hired field superintendent and consistent consultant field supervision, who all contributed to decreasing costs and increasing operating efficiency and production.  With the completion of the summer drilling program and the artificial lift enhancement operations we have undertaken, we are quickly building each of our knowledge base and operational capabilities with these assets, which will drive our daily production and reserve base for our shareholders."

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.

CAUTIONARY STATEMENTS

Forward-Looking Statements

Certain information contained in this press release constitutes forward-looking statements, including, without limitation, information related to Mountainview's operational plans and the timing of operations on certain wells, the impact of such operations on production and other expectations with respect to production and reserves expectations.  By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's control including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, competition from other industry participants, the lack of availability of qualified service providers, personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources, inability to meet or continue to meet listing requirements, the inability to obtain required consents, permits or approvals and the risk that actual results will vary from the results forecasted and such variations may be material.  Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company's actual results, performance or achievement could differ materially from those expressed in or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom.

The forward-looking statements contained in this press release are made as of the date of this press release.  Mountainview disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Additionally, Mountainview undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.

The forward-looking statements contained in this press release are made as of the date of this press release.  Mountainview disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Additionally, Mountainview undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.

Initial Production Levels

Any references in this news release to initial, early and/or test or production/performance rates and/or "flush" production 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.

Barrels of Oil Equivalent

Barrels of oil equivalent (boe) is calculated using the conversion factor of 6 Mcf (thousand cubic feet) of natural gas being equivalent to one barrel of oil (bbl).  Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 Bbl 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 ratio of ^ Mcf: 1 Bbl, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

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.

SOURCE Mountainview Energy Ltd.

Copyright 2013 Canada NewsWire