Mountainview Adds Acreage in Williston Basin
Mountainview has acquired a 12.5% working interest in certain lands in the Williston Basin in Montana, comprised of 160 acres (net) of a 1,280 acre spacing unit (the "Lands"). The Lands were purchased from a private company owned by a related party of the Company (the "Vendor"). Pursuant to the Acquisition, Mountainview acquired the Lands for aggregate consideration of $160,000, being the same price on a per acre basis that the operator of the Lands recently acquired its interest in the Lands in an arm's length transaction.
Mountainview also announced its participation in the drilling of the Olson 1-21-16H, a horizontal Bakken well located on the Lands in the SESE-Section 21-Township 29 North, Range 57 East, Roosevelt County, Montana (the "Well"). Mountainview will own a 12.5% working interest in the Well, which is being drilled by G3 Operating LLC ("G3"), a subsidiary of GeoResources, Inc., a U.S. Public Company traded on NASDAQ. Once completed, G3 will operate the Well. The anticipated total depth of the Well is 19,420 feet with a total horizontal leg in the Bakken Shale of 1,280 acres (approximately 10,500 feet).
Due to the fact that the Vendor is a "related party" of the Company pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the Acquisition is a "related party transaction" pursuant to MI 61-101. The Company is relying on the exemptions from the formal valuation and minority approval requirements of MI 61-101 found in subsection 5.5(a) and 5.7(a) of MI 61-101, pursuant to which a formal valuation and minority approval are not required in the event that at the time the transaction is agreed to, neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves interested parties, exceeds 25 per cent of the issuer's market capitalization.