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Blackbird Energy Inc. Provides Operational Update and Announces Filing of Annual Financial Statements and 2012 Reserves Information
By: Marketwired .
Nov. 27, 2012 05:00 PM
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/27/12 -- Blackbird Energy Inc. (TSX VENTURE:BBI) ("Blackbird" or the "Company") is pleased to provide an operational update on its Bigstone Montney formation, liquids rich natural gas resource play.
The tubing string has been installed in the DEI Bigstone Hz 13-33-60-22w5 well (BBI W.I. - 12.5%). After tubing installation the well was flowed back for a period of 32.25 hours and during the final 24 hour period it produced at an average rate of 2.87 Mmcf/day (BBI net - 0.360 Mmcf/d) and 510 bbls/day (BBI net - 64 bbls/day) of condensate and load fluid for a combined barrel of oil equivalent rate of 988 BOEPD (123 BOEPD net to BBI). Approximately 75% of the load fluid used during fracking operations has been recovered to date. The 13-33 well was drilled to a total measured depth of 5,336 meters and completed with a 20 stage frac.
The DEI Bigstone Hz 13-33-60-22w5 tie-in operations including construction of surface facilities and laying the pipeline connection to the Donnybrook operated Bigstone gathering system has been completed. Production from the 13-33-60-22w5 well commenced on November 25, 2012.
Blackbird is also pleased to announce that production revenues from the 15-32-60-22w5 and 14-29-60-22w5 wells are now being received from the operator.
The Company's year-end independent reserve evaluation effective July 31, 2012, prepared by GLJ Petroleum Consultants Ltd. ("GLJ"), an independent engineering firm, has estimated that total Proved plus Probable reserves of 625,000 bbls of oil equivalent were recoverable from 2.25 sections of the Company's interest in the 8 section block, based upon the drilling of the first three wells at Bigstone. The remaining undeveloped interest lands are offset by successfully completed Montney wells drilled by industry participants in the area, thereby substantially de-risking the Montney potential of the remaining acreage. The next phase of development work at Bigstone will focus on proving up the potential of the remaining 5.75 sections of undrilled lands.
Garth Braun, CEO of Blackbird, stated, "The tie-in of the third well at Bigstone is a continued enhancement of Blackbird's production revenue. The recently announced acquisition of Celtic Exploration Inc. by Exxon Mobile Corporation further highlights the interest in companies that are participating in development of the Montney Formation. Blackbird is focused on increasing its position in the development of the Montney Formation and identifying new opportunities to grow shareholder value."
Blackbird today also announced that it has filed its audited financial statements and related management's discussion and analysis for the year ended July 31, 2012 with the Canadian securities regulatory authorities on SEDAR at www.sedar.com. In addition, the Company has filed its statement of reserves data and other oil and gas information for the year ended July 31, 2012 as mandated by National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") of the Canadian Securities Administrators.
Blackbird's reserves were evaluated as at July 31, 2012 by GLJ. GLJ's evaluation was conducted in accordance with standards set out in the Canadian Oil and Gas Evaluation Handbook and is compliant with NI 51-101.
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.
On behalf of the board of BLACKBIRD ENERGY INC.
Garth Braun, Chief Executive Officer and Director
Oil Equivalency Conversion (BOE)
Where amounts are expressed on a barrel of oil equivalent ("BOE") basis, natural gas volumes have been converted to BOE at a ratio of 6,000 cubic feet of natural gas to one barrel of oil equivalent (6 Mcf = 1 BOE). The conversion ratio is based upon an energy equivalent conversion method, primarily applicable at the burner tip and does not represent value equivalence at the wellhead. BOE values may be misleading, particularly if used in isolation.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding production and production revenues from the wells. 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.
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