Vancouver, British Columbia --(August 5, 2011) - Blackbird Energy Inc. (TSXV: BBI) ("Blackbird" or the"Company"), is pleased to announce that it has closed the second and final tranche of its private placement previously announced on June 17, 2011 (the "Private Placement").
An aggregate of 935,000 units, comprised of 425,000 flow-through units (each, a "FT Unit") and 510,000 units (each, a "Unit") at a price of $0.20 per Unit and $0.20 per FT Unit, were issued pursuant to this tranche for gross proceeds of $187,000. Each Unit consists of one common share in the capital of the Company (each a "Share") and one common share purchase warrant (each, a "Warrant") exercisable at a price of $0.35 per Share until August 4, 2013. Each FT Unit is comprised of one Share issued on a flow-through basis and one Warrant. Finders acting in connection with the second tranche of the Private Placement will receive finder's fees in the total amount of $12,560 and an aggregate of 62,800 finder's warrants, each finder's warrant entitling the holder thereof to purchase one Share until August 4, 2013. All of the Shares, Warrants and finder's warrants issued pursuant to the Private Placement are subject to a four-month hold period which expires on December 5, 2011.
The proceeds from this tranche, along with the proceeds from the first tranche of the Private Placement, will be initially applied to the Company's project with Donnybrook Energy Inc. for the lease construction and drilling of the Montney Horizontal formation well at Bigstone. Closing of the second tranche is subject to final approval from the TSX Venture Exchange.
Insiders of the Company acquired a total of 100,000 FT Units in the second tranche of the Private Placement (the "Insider Participation").The Insider Participation is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 ("MI 61-101") by virtue of the exemptions contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101 based on that the fair market value of such Insider Participation did not exceed 25% of the Company's market capitalization.
Blackbird is also pleased to announce that it and its partners have received the licence at their Bigstone, Alberta lands, for the drilling of the Montney horizontal well with a horizontal length of approximately 1,400 metres. Well site construction has begun and the well is currently expected to spud early in the third quarter of 2011. The well is located within five miles of a recently announced liquids rich natural gas two mile horizontal Montney well that after clean-up reportedly flowed on test over the last day at an average rate of 13.1 MMCF of natural gas and 650 barrels of crude oil and NGLs per day (2,800 boe per day). Donnybrook and its partners hold 7 contiguous sections of Triassic Montney PNG rights at Bigstone.
Blackbird also announces that it has granted an additional 350,000 incentive stock options, exercisable at the price of $0.20 until August 5, 2016, to its Chief Executive Officer, Garth Braun. Concurrently with such grant, the Company has cancelled a total of 300,000 incentive stock options previously granted to Mr. Dennis Paterson in connection with his appointment as a director earlier this year. Currently, an aggregate of 1,888,377 Shares remain available for grant under Blackbird's stock option plan.
About Blackbird
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.
Blackbird's wholly-owned subsidiary Blackbird Energy LLC ("Blackbird Energy") holds a 75% interest in 3,857 acres of leasehold land located in Gray County, Texas known locally as the "Mathers-Gordon Prospect". The Mathers-Gordon Prospect is a multi pay oil and gas prospect. Blackbird Energy is the operator of the prospect. In addition, Blackbird plans to actively look for further oil and gas properties for acquisition or potential joint ventures.
On behalf of the board of
BLACKBIRD ENERGY INC.
Per:"Garth Braun"
Garth Braun
Chief Executive Officer and Director
For further information contact:
Dwane Brosseau
604.662.4955
[email protected]
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding Donnybrook's ability to drill the Test Well, the timing of the drilling and any results from the Test Well specifically or the Montney Shale play in general. 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