Mountainview Energy Ltd. (MVW) (Mountainview) is pleased to announce that further to its news release of April 30, 2012 it has closed the acquisition of 12,579 net acres of oil and gas leaseholds in Divide County, North Dakota from a private oil and gas company for $12,579,000.
Mountainview has identified an initial twenty drilling locations on this project targeting the Three Forks Formation. The first location is an offset south of SM Energy Company’s Wolter 1-28H well, located in Sec. 28, T163-R100W. The Wolter 1-28H well had initial production of approximately 550 barrels of oil per day, 367 MCF of natural gas per day and 447 barrels of water per day, and has produced 149,611 barrels of oil equivalent (boe) in approximately 1 year of production, or approximately 410 boe/d, with a 89.93% oil weighting. The second location is an offset southwest of SM Energy Company’s Legaard 4-25H well, located in Sec. 25 , T163N-R101W. The Legaard 4-25H well had initial production of approximately 543 barrels of oil per day, 350 MCF of natural gas per day and 771 barrels of water per day, and has produced 99,039 boe in approximately 7 months of production, or approximately 472 boe/d, with a 86.89% oil weighting.
Several prominent companies are drilling and developing the Bakken and Three Forks formations in this area, including SM Energy Company, Samson Resources, American Eagle Energy, Baytex Energy Corp. and Crescent Point Energy Corp. With the closing of the Transaction, the Company’s current acreage position in the Williston Basin is approximately 36,000 net acres.
Patrick Montalban, Mountainview’s President and Chief Executive Officer, commented, “We are very pleased to announce Mountainview’s final closing on the acquisition of the 12 Gage Prospect in Divide County, North Dakota. Mountainview has now completed a strategic goal of acquiring over 30,000 net acres in the Williston Basin. The Company will now focus on drilling its acreage position in the 12 Gage Prospect in Divide County, North Dakota and the Stateline Project in Sheridan County, Montana in the Williston Basin.”