Mountainview Energy Ltd. provides operational update on its 12 Gage Project in the Williston Basin

CUT BANK, MT, Jan. 7, 2013 /PRNewswire/ - Mountainview Energy Ltd. (TSXV: MVW) ("Mountainview" or the "Company") is pleased to provide an operational update.

Operational Update - 12 Gage Project

Wigness 5-8-1H, Section 5 & 8 T162N-101W, Divide County, North Dakota

The completion program on the Wigness 5-8-1H (the "Wigness Well"), a horizontal Three Forks well, began on the morning of December 29, 2012, with the commencement of a 26-stage fracture treatment. The Company used the "Plug and Perforate" method   and completed fracing operations on January 2, 2013.  Sanjel performed the fracing operations and successful fracture treatment was achieved at each stage without any difficulties.    The Wigness Well is currently flowing back and the Company intends announce an initial production rate by the end of January.

Through its wholly-owned subsidiary Mountain Divide, LLC ("Mountain Divide"), the Company holds a 93.75% working interest in the Wigness Well, 25% of which is subject to reversion to another working interest owner following payout of 100% of the cost of their proportionate working interest costs in the well plus a 200% penalty.  Pursuant to Mountain Divide's previously announced credit facility (the "Facility"), all of Mountain Divide's oil and gas properties located in Divide County, North Dakota (including the lands in the 12 Gage Project) are subject to a 39% after pay-out net profits interest (the "NPI") held by Mountain Divide's lender under the Facility (the "Lender"). The NPI is defined as all revenues received by Mountain Divide, less all operating costs, production taxes, and capital costs incurred by Mountain Divide. Payments on the NPI shall commence upon repayment in full of the outstanding Facility. Pursuant to the agreements underlying the Facility, the NPI will automatically reduce to 20% once the Lender achieves a 1.65 x return on investment.

Leininger 3-10-1H, Section 3 & 10 T162N-R101W, Divide County, North Dakota

The Company spudded the well on December 12, 2012 and completed drilling operations on the Leininger 3-10-1H well (the "Leininger Well") on December 28, 2012 to a Total Depth of 18,440'.   The Company is preparing the Leininger Well for a 26 stage fracture stimulation, which will commence on January 25, 2013.  Total operational days from spudding the well to releasing the rig was 16 days---3 days less than the Wigness well and Mountainview plans to complete the Leininger Well by the end of January, 2013.  The Leininger Well is the second Bakken/Three Forks well in the three well winter drilling program on Mountainview's 12 Gage Project. The Leininger Well is located approximately 2 miles east of the Wigness Well.  Through Mountain Divide, the Company holds a 87.47% working interest in the Leininger Well, 3 to 4% of which is subject to reversion to another working interest owner following payout of 100% of the cost of their proportionate working interest costs in the well plus a 200% penalty. The Leininger Well is also subject to the NPI.

Olson 35-26-1H, Section 35 & 26 T163N-R101W, Divide County, North Dakota

Mountainview has rigged up Nabors 460 on the Olson 35-26-1H (the "Olson Well") location. The Olson Well is the final well planned for the three-well winter drilling program on Mountainview's 12 Gage Project and is located approximately 2-3 miles north-east of the Leininger Well.  To date, the Company has drilled and cemented 9 5/8" surface casing to 1435'.  Through Mountain Divide, the Company holds a 60.07% working interest in the Olson Well, 3 to 4% of which is subject to reversion to another working interest owner following payout of 100% of the cost of their proportionate working interest costs in the well plus a 200% penalty. The Olson Well is also subject to the NPI.

12 Gage Regional Activity Update

As previously stated 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.  All of the following operators are continuing their development of the Bakken/Three Forks play near the 12 Gage Project.  As previously stated, Northwest Divide County has seen recent M&A activity with Continental Resources and Magnum Hunter Resources each making acquisitions in the area.  Along with these acquisitions, Murex Petroleum has also permitted wells in the area near the Company's 12 Gage Project.  The following table illustrates the recent drilling activity that has been made public by the relevant company or regulatory authorities:

Non-Operational Update - Williston Basin

To date the Company has participated in 10 (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.

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.

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 6 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 expected timing of initial production rates on the Wigness Well, the expected date of operations on other wells, potential drilling locations and other operational plans.  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.

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.

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