Welcome!

Microsoft Cloud Authors: Liz McMillan, Elizabeth White, Mihai Corbuleac, Pat Romanski, David Bermingham

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.

Financing

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)

Notes:
 
(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
information.

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.

CAUTIONARY STATEMENTS

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
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
Korean Broadcasting System (KBS) will feature the upcoming 18th Cloud Expo | @ThingsExpo in a New York news documentary about the "New IT for the Future." The documentary will cover how big companies are transmitting or adopting the new IT for the future and will be filmed on the expo floor between June 7-June 9, 2016, at the Javits Center in New York City, New York. KBS has long been a leader in the development of the broadcasting culture of Korea. As the key public service broadcaster of Korea...
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit y...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will discuss the vast to...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. 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 ...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
SYS-CON Events announced today that 24Notion has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. 24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to con...
The demand for organizations to expand their infrastructure to multiple IT environments like the cloud, on-premise, mobile, bring your own device (BYOD) and the Internet of Things (IoT) continues to grow. As this hybrid infrastructure increases, the challenge to monitor the security of these systems increases in volume and complexity. In his session at 18th Cloud Expo, Stephen Coty, Chief Security Evangelist at Alert Logic, will show how properly configured and managed security architecture can...