By OGJ editors
HOUSTON, July 27 -- Mountainview Energy Ltd., Cut Bank, Mont., signed a binding letter of intent to acquire a 20% interest in 67,000 gross acres, 13,400 net acres, in the Medicine Lake prospect in Divide County, ND, and Richland, Roosevelt, and Sheridan counties, Mont.
Consideration is 33.1 million Mountainview shares at 65¢/share (Can.). The acquisition along with acreage held in the same four counties brings Mountainview's Williston basin holding to 25,400 net acres.
Mountainview signed a joint operating agreement with a large independent US oil and gas company to jointly develop the assets in the Bakken and Three Forks formations via horizontal drilling. The joint interest party will be the operator.
Certain vendors of the assets are insiders by virtue of their shareholdings in Mountainview and directly or indirectly own 55% intrest in the assets, said Patrick Montalban, president and chief executive officer.
Completion of the acquisition is subject to TSX Venture Exchange approval of TSX Venture Exchange, other regulatory approvals, due diligence and title reviews, approval of Mountainview's board, and other conditions.