Microsoft Cloud Authors: Elizabeth White, Yeshim Deniz, Serafima Al, Janakiram MSV, John Katrick

News Feed Item

Mountainview Energy Ltd. enters into agreement for up to $75 million of financing for its 12 Gage Project, provides operational update and announces non-core asset sale

CUT BANK, MT, Nov. 5, 2012 /PRNewswire/ - Mountainview Energy Ltd. (TSXV: MVW) ("Mountainview" or the "Company") is pleased to announce a financing and a non-core asset sale and to provide an operational update.


Mountainview is pleased to announce that it has entered into a $75.0 million senior secured advancing line of credit facility (the "Facility")  with a major energy capital provider (the "Lender") pursuant to which Cynergy Advisors, LLC acted as sole agent to Mountainview.  Cynergy provides investment banking services to public and private energy related businesses.  In connection with the Facility, Mountainview has assigned its recently acquired 12,579 net acres of oil and gas leaseholds located in Divide County, Montana prospective for the Bakken/Three Forks formations in what the Company calls its "12 Gage Project" to a wholly-owned subsidiary of Mountainview called "Mountain Divide, LLC" (the "Borrower").

The Facility includes an initial borrowing base of $19.0 million, which is to be used to fund the drilling of the Company's initial three wells in the 12 Gage Project. The Facility matures in 32 months and, bears interest initially at 8%. Monthly repayments are required based on 85% of net revenues from the 12 Gage Project. In connection with the Facility, the Lender and the Borrower will have an area of mutual interest ("AMI"), which will be in northern Divide County, North Dakota.  In addition, pursuant to the Facility, upon the earlier of the initial funding or the spudding of the first well in the area by the Borrower, the Lender will be assigned a 39% after pay-out net profits interest (the "NPI") in all of Borrower's oil and gas properties within Divide County, Montana.  The NPI is defined as all revenues received by Borrower, less all operating costs, production taxes, and capital costs incurred by the Borrower.  Payments on the NPI shall commence upon repayment in full of the outstanding Facility. The NPI will automatically reduce to 20% once the Lender achieves a 1.65 x return on investment as stated in the definitive agreements. The Facility is secured by a first priority mortgage and security interest in the 12 Gage properties. The borrowing base under the Facility will be subject to re-determination within 45 days of the third well being turned into sales and thereafter semi-annually. The Borrower is required to maintain a current ratio of 1.0: 1.0.

Operational Update - Williston Basin

Since the closing of the acquisition of the 12 Gage Project, Mountainview has increased its acreage position to 12,800 net acres.  This brings the Company's current acreage position in the Williston Basin to approximately 36,000 net acres.  The Company has contracted with Nabors Rig 460 for a three-well drilling program in the 12-Gage Project targeting the Three Forks formation.   The rig was moved to the Wigness 5-8-1H on November 4, 2012 with drilling operations to commence on November 8, 2012.    Sanjel has been contracted to conduct cementing and fracturing services on this program.  The Company projects well costs, including drilling, completion and tie-in to be $7-7.5 million (gross) per well.  The company has identified 21 total initial drilling locations on its 12 Gage Project.  Along with the Company's Stateline property, the Company currently has identified 46 initial operated drilling locations on its Williston Basin properties. The following table outlines the Company's first three proposed wells.

Well Name   Location      Working Interest
Wigness 5-8-1H   Sec. 5 & 8, T162N-R101W, Divide County, ND   93.75% 
Olson 35-26-1H   Sec. 26 & 35, T163N-R101W, Divide County, ND   52.23%
Leininger 3-10-1H  Sec. 3 & 10, T162N-R101W, Divide County, ND   88.28%

There are currently at least five operators developing the Middle Bakken and Three Forks formations near the 12 Gage Project: American Eagle Energy Corporation, SM Energy Company, Samson Resources, Crescent Point Energy Corp. and Baytex Energy Corp.  Pursuant to their public announcements, these companies have expanded the development to the north, south and west of the 12 Gage Project.  American Eagle, Samson and SM have all started infill drilling on several spacing units.  American Eagle has moved forward with their drilling program.  To date, American Eagle has drilled a total of 5 gross wells and has another 8 permitted.  American Eagle has announced that it expects to add another rig to its program this year.  American Eagle's acreage position is located directly North of the 12 Gage Project.  The following table illustrates some recent drilling activity that has been made public by the relevant company or regulatory authorities:

Company Well Status Additional Information
SM Energy Legaard 4-25H Completed October 2011;
20-stage frac
Gross cumulative production: 111,317 bbls of oil and
98,928 Mcf of Gas; an average of 369 boe/d as of 8-2012
SM Energy August 4-26H Confidential Directly North of the planned Olson 35-26H well.  Well spudded
on 8/17/12
SM Energy Leininger 3-10H Confidential Directly Northwest of the planned Olson 35-26H well.  Well spudded
on 6/15/12
SM Energy Carter 9-8HW Confidential Directly North of two Mountainview DSUs.  Well spudded on 5/17/12
American Eagle Christianson 15-12-163-101 Complete Initial 30 day average production rate of 479 boe/d(2)
American Eagle Cody 15-11-163-101 Complete Initial 30 day average production rate of 438 boe/d(2)
American Eagle Anton 3-4-163-101 Complete Initial 12 day average production rate of 427 boe/d(2)

(1)  Information in this table was obtained from public sources.  Please see the cautionary statements at the end of this news release for some
important information.
(2)  The information provided did not provide a break-down of oil, gas and water amounts that make up these production numbers, nor was any
further information about the tests made available. Please see the cautionary statements at the end of this news release for some important

Non-Operational Update - Williston Basin

To date the Company has participated in 8 (gross) Bakken/Three Forks wells in the Williston Basin.  The following table lists the wells and their current status which is the last available month's average daily production.

Operator     Well Name Working Interest       Well Status BOPD
G3 Operating     Olson 1-21-16H 12.5%       66
SM Energy     Wolter 13-23H 3.25%       295
Hess     Strahan 15-22H .625%       115
Petro-Hunt     Miller 157-101-12C-1-1H .787%       121
Samson     Zuma 15-22-35-58H 9.75%       54
Samson     Riva Ridge 6-7-33-56H ~3.24%       153
American Eagle     Anton 3-4-163-101 3.38%                      Confidential List
Zavanna     Panther 16-21-1H 2.200533%       410

Non-core Asset Sale

Mountainview is also pleased to announce the sale of non-core oil and gas leases located in the Glacier and Toole County, Montana.  The Company has sold a 100% undivided working interest in 4,373.82 net acres of fee and state leases to an arm's length third party for $1,000,000 cash while retaining an overriding royalty interest in the leasehold.

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.

About Cynergy Advisors, LLC.

Cynergy is a privately held investment banking firm providing investment banking services to public and private energy-focused and energy-related businesses. Our mission is to provide sound, ethical advice to our clients in order to achieve the most effective capital structure while bridging the gap between the technical aspects of the business with the financial markets.


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.  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.

Analogous Information

Certain information in this document may constitute "analogous information" as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"), including, but not limited to, information relating to the areas in geographical proximity to prospective exploratory lands held or to be to be held by Mountainview or the Borrower.  Such information has been obtained from government sources, regulatory agencies or other industry participants.  Management of Mountainview believes the information is relevant as it helps to define the reservoir characteristics in which Mountainview may hold an interest. Mountainview is unable to confirm that the analogous information was prepared by a qualified reserves evaluator or auditor. Such information is not an estimate of the reserves or resources attributable to lands held or to be held by Mountainview and there is no certainty that the reservoir data and economics information for the lands held or to be held by Mountainview will be similar to the information presented herein. The reader is cautioned that the data relied upon by Mountainview may be in error and/or may not be analogous to such lands to be held by Mountainview.

Forward-Looking Statements

Certain information contained in this press release constitutes forward-looking statements, including, without limitation, information related to the use of proceeds from the Facility, the contents of certain documents related to the Facility, the expected closing date of the Facility, potential drilling locations, Mountainview's operational plans, the timing of spudding, fracturing and other operations on certain wells and the expected closing date of the proposed Vecta transaction.  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.

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.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
DXWorldEXPO LLC announced today that "Miami Blockchain Event by FinTechEXPO" has announced that its Call for Papers is now open. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expe...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER give you detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPO also offers s...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...