Jun. 17, 2011 (Newsfile Corp.) --
Vancouver, British Columbia --(June 17, 2011) - Blackbird Energy Inc. (TSXV: BBI)("Blackbird" or the "Company"), is pleased to announce that it intends to carry out, subject to approval from the TSX Venture Exchange (the "TSX-V"), a brokered and non-brokered private placement for gross proceeds of up to $2,500,000 (the "Private Placement"). The Private Placement will consist of units of the Company (each, a “Unit), at a price of $0.20 per Unit. Each Unit shall consist of one common share in the capital of the Company (each a "Share") and one common share purchase warrant (each, a "Warrant"). Each Warrant shall entitle the holder to purchase one common share in the capital of the Company (a "Warrant Share") at a price of $0.35 per Warrant Share for a period of 24 months following the closing date.
The aggregate Private Placement will be for up to 12,500,000 Units, consisting of up to 7,500,000 Units and which may include up to 5,000,000 flow-through units (each, a "Flow-Through Unit") at a subscription price of $0.20 per Flow-Through Unit, each Flow-Through Unit being comprised of one Share issued on a flow-through basis and one Warrant, each Warrant entitling the holder thereof to purchase one Warrant Share at a price of $0.35 per Warrant Share. All of the securities issued pursuant to the Private Placement will be subject to a four month hold period from the date of issue.
The proceeds from the Private Placement will be initially applied to its project with Donnybrook Energy Inc. (TSXV:DEI) (OOTC:CSTPF) for the lease construction and drilling of the Montney Horizontal formation well at Bigstone, which is ready to proceed, weather permitting. The well is estimated to spud on or around July 29, 2011.
If any insiders of the Company participate in the Private Placement, any such subscription (the "Insider Participation") will be considered to be a related party transaction within the meaning of Exchange Policy 5.9 and Multilateral Instrument 61-101 ("MI 61-101"). Blackbird intends to rely on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of any Insider Participation.
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 the closing of the Private Placement and 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.