Blackbird Energy Provides Drilling Update on Bigstone Montney Well and Announces Closing Of Third and Final Tranche of Private Placement
Posted: Thursday Sep 6 1:18:02AM 2012
This is a good well but not sure it's going to move the needle for BBI.v. Was hoping this experienced operator could bring in a big well to highlight the value of this land package. We'll see how the market reacts.
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 5, 2012) - Blackbird Energy Inc. (BBI.V) ("Blackbird"), is pleased to provide the following Bigstone operations update.
DEI Bigstone Hz 13-33-60-22w5, (Blackbird 12.5% W.I. subject to a 2% GORR): the production tubing string has been installed in the well bringing the final phase of well completion operations to a close. The well is now ready for tie-in to the Donnybrook operated Bigstone pipeline system. Construction of the surface facilities and 1,300 metres pipeline installation is anticipated to commence in mid October with an estimated on-stream date of early November. Blackbird has fully funded its share of the AFE'd facilities and pipeline costs.
The well was flowed back for a period of 32 hrs and 15 minutes after the installation of the tubing string. The average flow rate during the final 24 hours of flow back was 2.87 Mmcf/day (BBI net - 0.36 Mmcf/d) and 510 bbls/day (BBI net - 64 bbls/day) of condensate and load fluid. Approximately 75% of the load fluid used during fracing operations has been recovered to date. The 13-33 well was drilled to a total measured depth of 5,336 metres with a lateral length of approximately 2,600 metres and completed with a 23 stage frac.
Blackbird's Bigstone Project is comprised of lands and licenses covering a total of 8 sections (1.75 net) or 5,120 acres (1,120 net acres) in Township 60, ranges 22 and 23W5 at Bigstone, Alberta. Pursuant to the terms of the farm in agreement with Donnybrook Energy Inc., Blackbird has the option to participate as to a 25 per cent interest in any future operations within an area of mutual interest.
Posted: Tuesday Aug 7 11:03:39AM 2012
hmmmm. not exactly what I was expecting. The property sounds small and not too exciting. 20bpd and LOTS of water and it's 15 API oil so discounted from Edmonton Light. All in all, not the type of property I would expect BBI to spend money on. From the backgrounds of the principals, this looks like the price BBI had to pay to get the principals to come over. They have a common link thru DonnyCreek. I am hoping these guys will bring value to BBI.v.
Posted: Tuesday Aug 7 6:36:05AM 2012
BLACKBIRD ENERGY INC. ANNOUNCES LETTER OF INTENT FOR ACQUISITION OF RUGER ENERGY INC.
August 7, 2012 – Vancouver, British Columbia (TSX-V: BBI) Blackbird Energy Inc. ("Blackbird" or the "Company"), is pleased to announce that it has entered into a non binding Letter of Intent (“LOI”) dated August 2, 2012 with Ruger Energy Inc. (“Ruger”) for the acquisition of Ruger by Blackbird (the “Acquisition”). Ruger’s assets consist of cash and oil and gas assets. The Acquisition will be subject to the approval of the TSX Venture Exchange (the "Exchange"). The Acquisition is an arm's length transaction.
Ruger is a junior oil and gas exploration and development company in Alberta.
The Ruger Oil and Gas Assets
Ruger has a 100% working interest in 680 acres in Alsask area located on the Alberta/Saskatchewan border. The property has 3 producing Mannville oil wells and 1 Glauconite water disposal well. Present production is 20 bopd. The oil is 15 degree API. The Glauconite disposal well takes water on vacuum at 150 bwpd.
This Mannville pool is an outlier to the large Conoco Marengo pool 6 miles east. Other outlying pools have been discovered in the area as well. These wells have produced in excess of 230,000 barrels of oil to date. Proved and probable producing remaining reserves are 29,000 bbls. PVBT10 is $1,010,000.
Terms of the Transaction
If the Acquisition is completed pursuant to the terms of the LOI, Blackbird will acquire Ruger by issuing common shares of its capital stock (the “Acquisition Shares”) to Ruger at a deemed price per share of $0.12, based upon the net asset value of Ruger at closing. The net asset value of Ruger as determined at closing may not represent fair market value. The Acquisition is subject to a number of conditions precedent which include completion of due diligence reviews by the parties, successful negotiation of a definitive purchase agreement, and receipt of all required regulatory and Exchange approvals.
Directors and Insiders
As a result of the issuance of the Acquisition Shares, Ruger will become an insider of Blackbird.
It is expected that the board of directors and management of the Blackbird will have the following individuals added:
Murray Scalf - Director
Mr. Murray Scalf has over 25 years of experience in the oil and gas industry. Mr. Scalf is currently on the boards of Donnybrook Energy Inc. and Donnycreek Energy Inc. Most recently, Mr. Scalf was the President of Dorado Energy Inc., a private oil and gas exploration and production company acquired by Wildstream Exploration Inc. in January 2010. Mr. Scalf was formerly the President of Denim Exploration Corp., and prior thereto, President of Dorchester Energy Inc., both Calgary-based oil and gas companies which were ultimately acquired by senior Canadian producing oil and gas companies. Mr. Scalf is a
member of the Canadian Association of Petroleum Landmen.
Darrell G. Denney - Director and Chief Operating Officer
Mr. Denney is a Registered Engineering Technologist with 30 years of diversified oil and gas industry experience including production, exploitation, drilling and completions. Recently, Mr. Denney has been providing engineering consulting services for Donnybrook Energy Inc. Prior to that he was Vice President of Operations at Dorado Energy Inc. Before Dorado, Mr. Denney worked with the same management team at Denim Exploration Corp. He was Vice President of Operations at Invasion Energy Inc. from 1999 –2001. From 1996 – 1998 Mr. Denney was Manager of Operations for Merit Energy Ltd. During the period 1990 – 1995 Mr. Denney held managerial and supervisory positions with Winfield Energy Ltd., Tarragon Oil and Gas Ltd. and Opinac Exploration Ltd. Mr. Denney began his career in the petroleum industry working for Dome Petroleum Ltd. 1981-1987 and Phillips Petroleum Resources Ltd. 1987 - 1990.
Garth Braun, CEO of Blackbird stated, “we are very pleased with the development of Blackbird and the addition of two very experienced operators to the team. We feel that adding this tremendous operational expertise will enhance shareholder value, as value achievement for our shareholders must be created both through the development of our existing project and also with the origination of new projects that are oil weighted. The business plan going forward will be to build on the strength of our Bigstone liquid rich deep basin gas play, and also focus on adding additional assets where Blackbird is the operator, which we are now in a position to capitalize on.”
Blackbird's Bigstone Project is comprised of lands and licenses covering a total of 5,120 acres (net 1,120 acres), in Township 60, ranges 22 and 23W5 at Bigstone, Alberta. By completing the terms of a farm in agreement with Donnybrook Energy Inc, Blackbird earned 25 per cent of Donnybrook's interest in the Bigstone lands and in any future operations within an area of mutual interest.
On behalf of the board of
BLACKBIRD ENERGY INC.
Per: “Garth Braun”
Chief Executive Officer and Director
For further information contact:
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the completion of definitive agreement for the Acquisition, the acquisition of Ruger and the valuation of the Ruger assets. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with oil and gas exploration and production, (3) a decreased demand for natural gas, (4) any number of events or causes which may delay or cease exploration and development of the Company’s property interests, such as environmental liabilities, weather, mechanical failures, safety concerns and labour problems; (5) the risk that the Company does not execute its business plan, (6) inability to retain key employees, (7) inability to finance operations and growth, and (8) other factors beyond the Company’s control. These forward-looking statements are made as of the date of this news release and, except as required by law, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.
THE TSX VENTURE EXCHANGE INC. HAS NEITHER APPROVED NOR DISAPPROVED THE CONTENTS OF THIS PRESS RELEASE. NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Posted: Saturday Aug 4 9:59:00AM 2012
Blackbird has been halted and will be issuing news pre-market on Tuesday.
Posted: Wednesday Aug 1 7:58:22AM 2012
Blackbird is in production. Third well is still not completed or tested due to wet weather. Need good test results from the third well to bring Blackbird back to life.
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 1, 2012) - Blackbird Energy Inc. (BBI.V) ("Blackbird"), is pleased to provide the following Bigstone operations update.
Blackbird's Bigstone HZ 14-29-60-22w5 Montney discovery well (Blackbird 37.5% BPO/25% APO) was placed on production in mid-June 2012 and during the first 42 days of operation produced at an average rate of 1.61 mmcf/d (605 mcf/d Blackbird W.I.) and 72.8 bbls/d (27.3 bbls/d Blackbird W.I.) of condensate for a combined oil equivalent total of 341 BOE/D (128 BOE/D Blackbird W.I.). Further NGLs will be extracted during processing at the shallow cut plant and are estimated to be 30-35 bbls/mmcf of raw gas. Blackbird has a 37.5% W.I. in the 14-29 well subject to a 2% GORR, plus a 10% ORR on its W.I. until payout at which time Blackbird reverts to a 25% W.I. and 2% GORR.
Blackbird's Bigstone HZ 15-32-60-22 W5M well (Blackbird 25% W.I. subject to a 2% GORR) commenced production on July 16 and for the first 7 producing days has been producing natural gas, free condensate and NGLs which will be extracted during processing. The 15-32 well had technical problems during the completion and only 6 stages of the planned 23 stage frac were completed successfully. The well is currently producing and the initial production rates are encouraging. The well has averaged 1.75 mmcf/d (437 mcf/d Blackbird's W.I.) with 153 bbls/d (38.25 bbls/d Blackbird's net W.I.) of condensate for a total of 445 BOE ( 111 BOE/D Blackbird net W.I.). The current fluid production includes both load fluids and free condensate, as 100 percent of the load fluids have not been fully recovered to date.
Blackbird's Bigstone Hz 13-33-60-22w5 well was drilled to a total measured depth of 5,336m and completed with a 23 stage frac. After initial flow back and clean up, the well is currently waiting on dry weather to install production tubing and final flow testing as well as commence construction and installation of surface facilities. The well will be tied into the Donnybrook operated Bigstone pipeline system as soon as access conditions permit. All operations at 13-33 have encountered delays due to heavy rain which has made access to the lease site difficult. As soon as surface conditions dry out, operations at 13-33 will commence. Flow rates on the well are currently not being released by the partners until final testing has been completed.
Industry activity in the Bigstone area continues to prove up the potential of Blackbird's land holdings to the west. The most recent well to be announced was an extended reach HZ that terminated 195 m south of Blackbird's 25% W.I. lands in Twp 60-23w5. The operator has reported the well tested an average 16 mmcf/d and approximately 800 bbls of condensate per day at the end of the test. This compares very well to an initial extended reach HZ well by the same operator which, for a mile of HZ length offsets Blackbird's 25% W.I. lands in 60-22w5 and is only 200m west of Blackbird's lands. The initial well tested 12.5mmcf/d and 770 bbls per day of condensate. These wells continue to demonstrate the excellent reservoir potential of the Montney Formation underlying the western sections of Blackbird's 25% W.I. lands in the Bigstone area. Blackbird has a 25% interest in 4 sections (2,560 acres, 640 acres net) in the western portion of its Bigstone prospect area that have not been drilled to date.
Based on results to date, four new horizontal Montney drilling locations at Bigstone have been surveyed. The timing of the drilling of the additional wells will be finalized in the fourth quarter of 2012.
Garth Braun, CEO of Blackbird stated, "The commencement of production at Bigstone is a major milestone achievement for Blackbird and will be foundational to the funding of future development activities. Blackbird's horizontal wells have efficiently evaluated the Montney formation and with competitor drilling activity all around the Company's lands the play has been largely de-risked."
Blackbird's Bigstone Project is comprised of lands and licences covering a total of 4,480 acres, in Township 60, ranges 22 and 23W5 at Bigstone, Alberta. By completing the terms of the farm in agreement, Blackbird will earn 25 per cent of Donnybrook Energy Inc.'s interest in the Bigstone lands and in any future operations within an area of mutual interest.
On behalf of the board of BLACKBIRD ENERGY INC