Jun. 8, 2011 (Newsfile Corp.) --
Vancouver, British Columbia--(June 8, 2011) - Blackbird Energy Inc. (TSXV:BBI) (TSX-V: BBI)("Blackbird" or the "Company"), is pleased to announce that, pursuant to Blackbird's news release of March 17, 2011, Donnybrook Energy Inc. (TSXV:DEI) (OOTC:CSTPF) has informed the Company that lease construction in preparation of spudding the Montney Horizontal formation test well at Bigstone is ready to proceed, weather permitting. The well is estimated to spud on or around July 29, 2011.
The Bigstone field (Township 60, Range 22W5) is located approximately 250 kilometres west-northwest of Edmonton, Alta. It falls within the Deep basin resource corridor, which continues northwest into British Columbia. In reasonably close proximity to Blackbird's farm-in acreage, approximately five miles south of the Company's first Bigstone test well location, Celtic Exploration Ltd. (TSX:CLT) drilled a Montney horizontal well in this area. Well 02/04-32-059-22W5/02 was completed in August, 2010, and is reported to have flow tested at rates of approximately 3.5 million cubic feet per day with 75 barrels per million cubic feet per day of natural gas liquids (NGL). The horizontal leg portion (also referred to as the lateral section) of this first well was approximately 1.3 kilometres (4,400 feet) in length. As of April 1, 2011, Celtic had drilled and cased a second, longer lateral (approximately 2.1 kilometres or 7,000 feet) Montney well from the surface location 00/05-03-060-22W5/00 to a bottom hole terminus 00/04-05-060-22W5/00. This well, which is about 3.5 miles from Blackbird's interest acreage, tested 13.1 million cubic feet per day and 650 barrels of oil and natural gas liquids. On April 1, 2011, Celtic spudded a third well location from the same surface location at 00/05-03-060-22W5/00 to a bottom hole terminus at 00/08-02-060-22W5/00. This third well is licensed for up to a three-kilometre lateral section.
Further to the results of its second well at 02/04-32-059-22W5/02, Celtic announced in a news release on April 11, 2011 that it is planning up to seven more wells in the Fir Bigstone area for the remainder of 2011. The rapid expansion of drilling activity by Celtic in this area serves to highlight the significant potential-impact participation in the Bigstone project could have in Blackbird's future growth potential.
Garth Braun chief executive officer of Blackbird, states: "We are very pleased to be participating in the development of this Montney Shale project. The recent announcement by Progress Energy Inc's (NYSE:PGN) sale of a working interest in three of its Montney Shale assets in North East British Columbia to Petronas, the successful drilling of high impact multi stage frac wells in Montney Shale pool by other operators and recent land sales all highlight the substantial value of this opportunity. Finally we look forward to commencing the drilling of our first development well on this project." For further information please visit our website to review our power point presentation of this project.
The Blackbird Bigstone Project is comprised of lands and licences covering a total of seven sections, in Township 60, ranges 22 and 23W5 at Bigstone. By completing the terms of the agreement, Blackbird will earn 25 per cent of Donnybrook's interest in Bigstone and in any future operations within an area of mutual interest (AMI). Donnybrook will act as operator and participate as to a 25-per-cent working interest in the drilling, completion and tie-in (or abandonment) of the test well.
The terms of the agreement call for the Company to pay land, permit and licensing costs and 37.5 per cent of drilling, completion and tie-in (or abandonment) costs to earn a reversionary working interest in the test well of 37.5 per cent before payout (BPO) reverting to 25 per cent after payout (APO) of all well costs, including tie-in of the well. Production from the test well will be subject to a convertible gross overriding royalty (GORR) of 10 per cent BPO on 37.5 per cent of production. At payout, the royalty is convertible to a 12.5 -per-cent working interest back-in by Donnybrook. Further, upon reaching the minimum total measured depth of 3,682 metres and completion of the horizontal test well, the Company will have earned 25 per cent of Donnybrook's interests covering the total seven sections (4,480 gross acres/1,120 net acres) in the Bigstone area. The Company will have the continuing obligation to finance a 37.5 -per-cent share of equip and tie-in costs. All earned acreage and other lands which may be acquired at some future date within an area of mutual interest (AMI) are burdened by Crown royalties and a non-convertible 2-per-cent GORR.
About Blackbird
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 Farmout Agreement 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.
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