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Initial Production Test on Leininger Well

Source: www.gulfoilandgas.com 3/19/2013, Location: North America

Mountainview Energy Ltd. (Mountainview or the Company) is pleased to provide an operational update on Mountainview’s 12 Gage Project in the Williston basin:

The Company installed an artificial lift system on the Wigness 5-8-1H well (the “Wigness Well”), the Company’s first horizontal Three Forks well in its three-well winter drilling program. The Wigness well, which was put on production on February 16, 2013, has produced intermittingly because of gas lock issues and the Company is currently evaluating options to curtail this problem. During this period of time the well produced for 7 days and averaged 396 bopd, 195 mcfd, and 748 bwpd. The peak production rate on the Wigness well was 613 bopd, 383 mcfd and 1,547 bwpd.

The Leininger 3-10-1H well (the “Leininger Well”), the second horizontal Three Forks well in Mountainview’s three-well winter drilling program, flowed for three days during the completion program at an average rate of 380 bopd, 230 mcfd, and 1,088 bwpd. The Company proceeded with the completion program by moving a service rig onto the well and milled out the 25 bridge plugs from the plug and perf fracture stimulation. After cleaning the well out properly the Company installed an artificial lift system and placed the well on production on March 14, 2013. Since the well has been on production it has averaged 348 bopd, 636.5 mcfd, and 772 bwpd. The peak production rate on the first day of production was 557 boe/d, comprised of 427 bopd, 838 mcfd, and 1,004 bwpd.

Mountainview has completed the 26 stage plug and perf fracture stimulation on the Olson 35-26-1H well (the “Olson Well”), the final horizontal Three Forks well in its three-well winter drilling program, which is located approximately 2-3 miles north-east of the Leininger Well. The Company commenced the completion program and a service rig milled out the 25 bridge plugs from the plug and perf fracture stimulation. After completing the clean-out of the well, the Company plans to install an artificial lift system and place the well on production.

Through its wholly-owned subsidiary Mountain Divide, LLC (“Mountain Divide”), Mountainview holds: (a) 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; (b) an 87.51% working interest in the Leininger Well, 3.12% 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; and (c) a 62.27% working interest in the Olson Well, 16.37% 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 credit facility (the “Facility”), all of Mountain Divide’s oil and gas properties located in Divide County, North Dakota (including the lands on which the Wigness Well, the Leininger Well and the Olson Well are situated) are subject to a 39% after pay-out net profits interest held by Mountain Divide’s lender under the Facility. These payments shall not commence until repayment in full of the outstanding Facility and will automatically reduce to 20% once the Lender achieves a 1.65 x return on investment.

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