|By PR Newswire||
|November 5, 2012 08:47 PM EST||
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:
|SM Energy||Legaard 4-25H||
Completed October 2011;
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
|SM Energy||Leininger 3-10H||Confidential||
Directly Northwest of the planned Olson 35-26H well. Well spudded
|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)|
Information in this table was obtained from public sources. Please see
the cautionary statements at the end of this news release for some
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|
|Samson||Riva Ridge 6-7-33-56H||~3.24%||153|
|American Eagle||Anton 3-4-163-101||3.38%||Confidential List|
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.
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.
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.
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.
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
Oct. 23, 2016 03:30 PM EDT Reads: 1,466
SYS-CON Events announced today that Coalfire will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Coalfire is the trusted leader in cybersecurity risk management and compliance services. Coalfire integrates advisory and technical assessments and recommendations to the corporate directors, executives, boards, and IT organizations for global brands and organizations in the technology, cloud, health...
Oct. 23, 2016 03:30 PM EDT Reads: 1,511
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
Oct. 23, 2016 03:00 PM EDT Reads: 34,018
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium will exhibit at the 19th International Cloud Expo®, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
Oct. 23, 2016 02:15 PM EDT Reads: 1,309
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Oct. 23, 2016 02:00 PM EDT Reads: 4,439
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Oct. 23, 2016 01:00 PM EDT Reads: 1,780
SYS-CON Events announced today that MathFreeOn will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MathFreeOn is Software as a Service (SaaS) used in Engineering and Math education. Write scripts and solve math problems online. MathFreeOn provides online courses for beginners or amateurs who have difficulties in writing scripts. In accordance with various mathematical topics, there are more tha...
Oct. 23, 2016 12:45 PM EDT Reads: 970
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.
Oct. 23, 2016 12:30 PM EDT Reads: 4,513
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
Oct. 23, 2016 12:00 PM EDT Reads: 8,352
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Oct. 23, 2016 11:30 AM EDT Reads: 11,327
In the next forty months – just over three years – businesses will undergo extraordinary changes. The exponential growth of digitization and machine learning will see a step function change in how businesses create value, satisfy customers, and outperform their competition. In the next forty months companies will take the actions that will see them get to the next level of the game called Capitalism. Or they won’t – game over. The winners of today and tomorrow think differently, follow different...
Oct. 23, 2016 11:00 AM EDT Reads: 941
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...
Oct. 23, 2016 10:30 AM EDT Reads: 1,464
Virgil consists of an open-source encryption library, which implements Cryptographic Message Syntax (CMS) and Elliptic Curve Integrated Encryption Scheme (ECIES) (including RSA schema), a Key Management API, and a cloud-based Key Management Service (Virgil Keys). The Virgil Keys Service consists of a public key service and a private key escrow service.
Oct. 23, 2016 09:45 AM EDT Reads: 1,030
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
Oct. 23, 2016 09:45 AM EDT Reads: 2,510
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Oct. 23, 2016 09:45 AM EDT Reads: 800
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Oct. 23, 2016 09:30 AM EDT Reads: 3,828
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Oct. 23, 2016 08:30 AM EDT Reads: 1,344
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to impr...
Oct. 23, 2016 08:00 AM EDT Reads: 5,691
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Oct. 23, 2016 07:00 AM EDT Reads: 4,112
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
Oct. 23, 2016 06:30 AM EDT Reads: 4,759