Mountainview Energy Ltd. announces 2013 year-end financial results

As highlighted by the Company's year-end financial and operational results, Mountainview added significant production, resulting in substantial growth in oil and natural gas sales, while also showing an increase in funds flow from operations and per boe netbacks.  This is the result of strong financial discipline and a focused and successful capital plan.  The results of the 2013 capital plan further de-risked the 12 Gage asset, adding a sizeable infill drilling inventory with capital efficiencies associated with pad drilling.

Mountainview's strategic shift to drilling higher working interest wells in 2013, versus lower working interest wells drilled in 2012, delivered positive results evidenced by the growth in revenue and operating netbacks.

Financial

At year-end 2013, Company net debt, was approximately $59.2 million and the Company had $39.3 drawn on its available credit facility of $51.2 million.  Funds flow from operations for 2013 increased significantly from 2012, reaching $6.5 million.

In response to exposure to volatility of differentials from WTI and industry concerns with respect to transportation restrictions in the Williston Basin, which translated into realized prices ranging from $71.27 per barrel of oil in Q1, to $90.61 per barrel of oil in Q3, 2013, the Company has entered into a financial hedging program commencing in January, 2014.  Mountainview has 30% of its production hedged for Q1, 2014, with a floor of $85.00 and a ceiling of $97.70.  The Company plans to actively manage its hedging program as its production base grows.

Operations

The Company's 2013 capital plan, including all drilling operations, was focused on its core 12 Gage asset in Divide County, N.D.  The $46.9 million capital program in 2013 included the drilling of 8 wells (4.8 net), with a 100% success rate.  At year end, there were 2 wells (1.8 net) that had been drilled and were awaiting completion.  The Company has selectively increased its working interest in its assets whenever appropriate as it has become more experienced operationally.  This experience has resulted in decreased capital costs on a per well basis from $8.3 million per well to $6.3 million per well.

Outlook

Mountainview has continued to deliver on its strategy of production and reserve growth.  With anticipated 2014 funds flow from operations in excess of $8 million, and available credit on its existing credit facility, Mountainview will continue to focus on the development of its core 12 Gage asset in Divide County, N.D.

The Company will continue to pursue an aggressive growth strategy using a combination of cash flow and available credit.  Recent positive movement in both oil pricing and the WTI oil differentials, combined with the Company's new hedge position, allows Mountainview to remain confident in the long term sustainability of the 2014 capital plan.

With the de-risking of the 12 Gage drilling inventory, Mountainview has identified 72 infill Three Forks locations.  Adding Bakken potential, there are an additional 80 drilling locations, all on the 12 Gage acreage.  With 152  potential drilling locations on the 12 Gage acreage, Mountainview is strongly positioned to review acquisition opportunities to further diversify and enhance the Company's commodity and play type risk.

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.

Forward-Looking Statements

Certain information contained in this press release constitutes forward-looking statements.  Statements relating to "reserves" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and can be profitably produced in the future. 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.

Barrels of Oil Equivalent

The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 mcf/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 of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. All boe conversions in this report are derived from converting gas to oil in the ratio of six  thousand cubic feet of gas to one barrel of oil.

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.