Mountainview Energy · OTC:MNVWF
Mountainview Energy — Investor Presentation (January 2015)
31 slides from Mountainview Energy's investor presentation, January 2015
Slide 1: Mountainview Energy Ltd.
Mountainview Energy Ltd. January, 2015 1 Confidential
Slide 2: Reader Advisory: Forward-Looking Statements
Reader Advisory Forward‐Looking Statements / Oil and Gas Reserves and Definitions Forward Looking Statements In the interest of providing readers with information regarding Mountainview Energy Ltd. ("Mountainview"), including management's assessment of the future plans and operations of Mountainview
Slide 3: Reader Advisory: United States Legal Disclaimer
Reader Advisory United States Legal Disclaimer Mountainview Energy Ltd. (the “Company”) is proposing to sell its securities (the “Securities”) in the United States on a private placement basis, pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, a
Slide 4: Corporate Overview: Summary Statistics and Quick Facts
Corporate Overview Summary Statistics and Quick Facts Mountainview Energy, LTD Quick Facts PROJECT LOCATIONS Listing TSX-V "MVW.V" Corporate domicile Alberta, Canada Headquarters Cut Bank, MT US Subsidiaries • Mountainview, Inc. • Mountain Divide, LLC Shares outstanding 87.8 MM Fully diluted shares
Slide 5: Management and Organization
Management and Organization Organization President/CEO: Patrick Montalban Finance Business Development Operations Corporate Secretary Land Manager Geologic Team* VP of Finance: VP of Business Development: VP of Operations: Carla Barringer Kevin O'Day Terry Ganey Brent Osmond, CMA Joseph Montalban Ju
Slide 6: Corporate Overview: Strategy
Corporate Overview Strategy Focus on execution and expansion of the Three Forks 12 Gage drilling program, located in the Williston Basin: • Continue the development drilling plan on existing core acreage position in Divide County, ND • Increase the acreage position • Reduce costs and improve produ
Slide 7: 2014 Capital Budget and Drilling Inventory
Corporate Overview 2014 Capital Budget and Drilling Inventory 2014 Priorities • Hold acreage in the 12 Gage Project area • Grow production and proven reserves • Reduce Well Costs • Expand the 12 Gage Project footprint within the ‘core’ area 12 Gage Inventory and Upside Unrisked Unrisked Unrisked DSU
Slide 8: Gage Project Map and Summary
Mountain Divide (fully owned subsidiary)’s 12 Gage Project 12 Gage Project Map and Summary Canada Montana Divide County, ND American Eagle SM Energy ~15,000 Net Acres with room for 30% CORE AREA: Acreage Growth • 9 Operated PDP (Producers) • ~45 Operated PUDS 12 GAGE PROJECT • ~15 Operated PRBS • Cu
Slide 9: Project Area Overview: Three Forks Structure
Project Area Overview Three Forks Structure 9 Confidential
Slide 10: North–South Cross Section and Increasing Oil Saturation
Project Area Overview North – South Cross Section and Increasing Oil Saturation 12 Gage Secondary Target: Middle Bakken 12 Gage Primary Target: Upper Three Forks (Torquay) 12 Gage Secondary Target: 12 Gage Geology: Lower Three Forks Bakken / Three Forks System: 10 Confidential
Slide 11: Gage Project Area Activity by Operator
Project Area Overview 12 Gage Project Area Activity – 30 Day IP—BOPD (High Month) By Operator • The Bakken/Three Forks Area of Review: 29 Three Forks Wells is comparatively shallow Drilled in the last 3 years…18 in the last 12 in Divide County months. T163N – 161N, R100 – 102W • Well costs are lower
Slide 12: Mountain Divide Operated Three Forks Wells' IP Rates
Mountain Divide 12 Gage Production Mountain Divide Operated Three Forks Wells’ IP Rates 600 MOUNTAIN DIVIDE 2013-14 THREE FORKS WELLS 30 Day IP 6% Increase over previous best well in less favorable 60 Day IP geology. 500 400 Average Daily Rate (BOEPD) IP'd on Rotoflex Pump 300 200 100 0 Wigness 5 Le
Slide 13: Drilling and Completion: Spud to First Production
Drilling and Completion 10 Operated Wells Drilled with Average Time to TD of 19 Days Spud to First Production, Mountain Divide Wells Well Spud Date First Prod Date Days Wigness 5-8-1H 11/14/2012 2/23/2013 101 Leininger 3-10-1H 12/12/2012 3/14/2013 92 Olson 35-26-1H 1/5/2013 4/11/2013 96 Heckman 7-6-
Slide 14: Drilling and Completion: Capital Cost Review
Drilling and Completion Capital Cost Review Drilling & Completion Costs Well SPUD Drilling ($M) Frac / Cleanout Facility/Location Total Initial 3 Wells (Wigness, Leininger, Olson 35): Avg D&C Cost = $8.5MM Heckman 7-6-1H 7/6/2013 2,298 3,355 1,149 6,802 Olson 2-11S-1H 8/8/2013 1,866 3,434 1,221 6,52
Slide 15: Capital Cost Improvements
Drilling and Completion Capital Cost Improvements Cost Reduction and Efficiency Initiatives Average Description Cost Reduction Cost Drilling Cost: $1,907M Reduce by 5% (cut 1 day to 18 days) through best practices and -$100M --$1,807 maintaining continuity on the Drilling Team. Frac Cost (Cleanout)
Slide 16: Lease Operating Expense Assumptions and Sensitivity
Production Operations Lease Operating Expense Assumptions and Sensitivity Lease Operating Expense Assumptions and Type Well Economics LOE, $/mo. LOE, $/mo. LOE, $/mo. SWD, Total Yr. 1 Total Yr. 2 1 to 6 mos. 6 to 18 mos. 18 mos. - ECL $/BBL. H2O IRR (%) LOE, $/BO LOE, $/BO High LOE scenario 28,000 1
Slide 17: Mountain Divide 4Q 2014
Mountain Divide 4Q 2014 BJNJ Well Pad • Monitor new (BJNJ 30-31-1H) Production Aaberg Well Pad • Continue BJNJ 19-18N-1H & Aaberg 8-5N-1H Pending Service Availability • Continue installation of SWD gathering in ‘core area’—reduces SWD cost by 50% • Finish gas sales tie-in Well Names Spud Date Comple
Slide 18: BJNJ 30-31-1H Production
BJNJ 30-31-1H Production BJNJ 30-31-1H Well Results • BJNJ is company’s best performing well in first 30 days • 1 day IP - 700 boe/d (639 bopd, 368 mcf/d) • 7 day IP - 623 boe/d (553 bopd, 420 mcf/d) • 30 day IP - 568 boe/d (506 bopd, 372 mcf/d) • Results represent a 29% increase in the 30 day IP co
Slide 19: BJNJ 30-31-1H Production
BJNJ 30-31-1H Production BJNJ 30-31-1H Well Results 19 Confidential
Slide 20: Legacy Assets
Legacy Assets Northwest Montana Production 2,500 gross/net acres, operator 100% WI 91% NRI Red Creek Field 100 boe/d Evaluating AB Bakken potential Current Production: 100 boe/d 35 producing wells (Madison, Lower Cut Bank Sandstone, Upper Cut Bank Sandstone) Williams Gas Field & Lake 3
Slide 21: Risk Mitigation
Risk Mitigation Significant growth potential while protecting value • Eleven successful wells drilled, with nine successful producers across the existing acreage position, generating a further 69 well-defined infill development drilling locations for the Three Forks formation with 80 additional up-h
Slide 22: Appendices
Appendices 22 Confidential
Slide 23: Board and Management Profiles
Management and Organization Board and Management Profiles Patrick M. Montalban – President, CEO and Director: Mr. Montalban has been active in the oil and gas exploration and production industry for over 30 years, starting his career as a roughneck in 1977. Since then, he has served in leadership po
Slide 24: Mountain Divide Operated Wells and Type Curve
Project Area Economics Mountain Divide Operated Wells and Type Curve 24 Confidential
Slide 25: Management, Directors and Advisors
Management and Organization Management, Directors and Advisors Management Executive Position Most Recent Position(s) President & CEO - Altamont Oil & Gas Patrick Montalban President & Chief Executive Officer Executive VP & COO - Quicksilver Resources Brent Osmond Vice President – Chief Financial Off
Slide 26: Cemented Liners and High Proppant Intensity Fracs
Drilling and Completion Cemented Liners and High Proppant Intensity Fracs EOG Frac Technique Case Study Mountrail, ND Roosevelt, MT NE Elm Coulee Clearwater Field Roosevelt, MT High NE Elm Coulee EUR Month STA FLUID Well Operator (MBOE) (BOPD) GES (BBLS) #'s Prop Notes Diamond 2- Estimated based on
Slide 27: Completion (Frac Stimulation)
Drilling and Completion Completion (Frac Stimulation) Historical & Summary of Offset Operator Fracs EUR High Month Prod LATERAL LENGTH Well Operator (MBOE) (BOPD) Months WC (ft) STAGES FLUID (BBLS) #'s Prop Notes Mount. Used plug & perf, but modelled after Wigness 5-8-1H Divide 312 268 14 78 9924 26
Slide 28: Consistent Three Forks Stratigraphy from East to West
Project Area Overview Consistent Three Forks Stratigraphy from East to West 28 Confidential
Slide 29: North–South Cross Section and Increasing Oil Saturation
Project Area Overview North – South Cross Section and Increasing Oil Saturation 29 Confidential
Slide 30: Supplemental Financial Information: Hedge Position
Supplemental Financial Information Hedge Position Month Barrels On December 19, 2013, the Company engaged in an eighteen month Jan-14 11,000 Hedging Agreement with Wells Fargo Feb-14 11,000 Mar-14 11,000 The agreement has a collar with a floor at $85.00 and a ceiling at $97.70 Apr-14 9,000 May-1
Slide 31: Running Room (Potential Future Projects)
Running Room (Potential Future Projects) Colossus Red River / Three Forks / Lodgepole Project: Prolific – 135,000 net acres Dawson, Richland & Wibaux Counties, MT Golden Valley, ND Whiting, Interstate, and Petro-Hunt Active ~30 Recent Red River wells drilled in the Project Area— 100 – 2,000 MBO
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