Mr. Patrick Montalban reports
MOUNTAINVIEW ENERGY LTD ANNOUNCES THE ACQUISITION OF 13,000 NET ACRES IN THE BAKKEN AND THREE FORKS PLAY IN THE WILLISTON BASIN
Mountainview Energy Ltd. has entered into a binding purchase
and sale agreement to acquire 12,778 net acres of oil and gas leaseholds in Divide county, North
Dakota, from a private oil and gas company. Pursuant to the purchase and sale
agreement, Mountainview has agreed to pay $1,000 per net acre for a
total purchase price equal to $12,678,000. Future operational plans related to the assets will be disclosed
following the closing of the acquisition.
As stated in previous news releases of the company, a key component of
Mountainview's strategy has been and will continue to be to grow
through the acquisition of Williston basin acreage. The acquisition
brings the company's total acreage in the Williston basin to
approximately 36,000 net acres. The Williston basin has recently seen
a significant increase in drilling activity, with production occurring
from both the Bakken and Three Forks formations. Issuers in the area
of the Williston basin where the assets are located have also noted
lower drilling and completion costs compared with other parts of the
Williston basin. The company has recently participated in the SM
Energy Wolter 13-23H, which is in close proximity to the assets. The
Wolter well, which is located in sections 23 and 14, T163N, R100W, has
been on production for 89 days, and has produced 48,982 barrels of oil
and 41,584 thousand cubic feet of natural gas, which is an average daily production of 628 barrels of oil equivalent per day over the life of the well. Another well was drilled in
close proximity to the assets by SM Energy; the Legaard 4-25H well,
which is located in section 25 and 36, T163N, R101W, has been on
production for 115 days, and the well has produced 53,647 barrels of oil
and 52,375 thousand cubic feet of gas, which is a daily average production of 542 barrels of oil equivalent per day
over the life of the well.
Mountainview expects to finance the acquisition through the issuance of
debt or equity securities (or a combination of both) or through the
sale of non-core assets. In the event that Mountainview is not able to
secure debt or equity financing for the purchase price on attractive
terms, three insiders of the corporation have agreed to secure the
necessary funds.
The closing of the acquisition is expected to occur on May 30, 2012, and
is subject to the approval of TSX Venture Exchange and all other
necessary regulatory approvals. In addition, the completion of the
acquisition is subject to several conditions, including the
satisfactory completion of due diligence and title reviews by the
corporation.
We seek Safe Harbor.
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