Thursday, February 17, 2011

(TSX.V: MVW) Mountainview Energy RESUMES TRADING Fri Feb 17th, 2011

(TSX.V: MVW) Mountainview Energy, a company I highlighted back in December is finally back trading tomorrow (Feb 18th, 2011 @ 9:30am EST)! It's been halted at $0.55... but momentum has been building and anything under $1.00 could be a steal.

They've just completed a Reverse take-over, acquisition & approx $4,725,000 Financing

View News Release and Updates:

This will leave MVW with a very impressive land holding right in the "HOT-ZONE" of the Alberta/Bakken and Wiliston Basin. They're already profitable with their existing wells.

Current Holdings:

Land - 85,000 net acres of Three Forks/Bakken and Alberta Bakken
Share Listing -TSX Venture Exchange “MVW.V”
Shares Outstanding - 9.7 million basic shares
Financing & Acquisitions - 21 million
Post Transaction - 69 million outstanding
Convertible Debenture - $1.15 million convertible at $.28
Inside Ownership - 80%- *closely held*
Debt - None
Working Capital - Approx $ 1 million
Production - 130-150 BOPD
*info taken from Corporate presentation found on website:

How to value their present holdings:

Land: Comparable Land is valued between $500-1,500 per acre... so $42,500,000 - $127,500,000
Production: EPS $0.055 (Conservative multiple of 15 = $0.87
Conclusion: $.80 - 1.50 would be a fair valuation for the stock with what they currently have

Game plan moving forward:

2011 Capital Program: Drilling: 4 verticals, 6 Horizontals, 10 work-overs and re-completions
Stateline Project: $22 million
AB Bakken: $2.4 million
Red Creek: $2.3 million
Other Projects: $1.0 million
Maintenance Production: $200,000
Total Capital: $ 27.9 million
Debt: 0
Exit 2011 Production: 1500 boe/d
At $.32/share: $252/acre
Competitors: $6050/acre adjusted for cash and production



At the current price of $0.55 there's room to move up 45-170% just based on what they currently have. If they successfully roll out their 2011 strategy, we could see this above $3-5.00, which would mean massive overall gains!! Predicated on the acquisition of additional wiliston basin property & a drilling program that involves joint ventures & company operated wells

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