Mountainview Energy Ltd. said its reserves grew significantly at the end of 2013, highlighting the success the company has achieved in its 12 Gage Project targeting the Bakken/Three Forks in North Dakota.
On Monday, the Cut Bank, MT-based company said its total proved and probable (2P) reserves had increased by 14.9 times to 11.46 million boe, with 88% weighted toward liquids at the end of 2013. Total proved (TP) reserves had also grown 14.7 times to 6.78 million boe (88% liquids) at the same juncture.
Mountainview said 2P reserves per basic share had grown 13-fold, while before tax net present value discounted at 10% (BT-NPV10%) had increased 844%, to $103.5 million. TP reserves had a BT-NPV10% value of $75.9 million.
"The oil and gas reserves have increased 15 times year over year, which is a testament to the hard work and expertise of the team at Mountainview," said CEO Patrick Montalban. "We have grown our reserve value by over 800%, supporting our view that the 12 Gage Project is a tremendous asset, a 'company builder.'
"We look forward to further growth as we continue to develop the Three Forks and begin to develop the Bakken in Divide County, ND. We will continue to focus on improving development and production costs as we refine operations in the field."
Natural gas accounted for 7.95 Bcf of the total 2P reserves, while light oil totaled 10.14 million bbl. In terms of TP reserves, gas was 4.88 Bcf and light oil was 5.96 million bbl.
Breaking down TP reserves, undeveloped (UD) resources accounted for 4.37 million boe while developed producing (DP) resources totaled 2.4 million boe at the end of 2013. Gas accounted for 2.83 Bcf of UD and 2.05 of DP, while light oil was 3.9 million bbl of UD and 2.07 million bbl of DP.
"There were no acquisitions in 2013," the company said. "All reserve increases were achieved through the drill bit."
Mountainview holds varying degrees of working interest in eight wells that comprise the 12 Gage Project, which is located in Divide County and is targeting the Three Forks with Middle Bakken potential. Six wells are producing while two are waiting on completion. The company currently holds 13,800 net acres for the project and controls 21 spacing units.
"Successful initial drilling results and associated booking of future locations on [our] 12 Gage Three Forks light oil play have attributed 10.27 million boe (89% liquids) or 94% of the 10.97 million boe, 2P reserves additions in 2012," the company said. "The eight drilled and booked locations (6.6 net) at 12 Gage represent approximately 10% of the original inventory of net locations, with 72 net undrilled locations remaining."
Mountainview's reserves were evaluated by the firm Cawley, Gillespie & Associates, Inc.