Blackbird Energy Inc.

Blackbird Energy Inc.

December 08, 2011 08:30 ET

Blackbird Energy Announces Closing Of Second Tranche of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 8, 2011) -


Blackbird Energy Inc. (TSX VENTURE:BBI) ("Blackbird" or the "Company"), is pleased to announce that it has raised additional gross proceeds of $658,000 in a combined closing of the second tranche (the "Second Tranche") of its previously announced brokered private placement (the "Private Placement") led by lead agent PI Financial Corp. (the "Agent") and certain non-brokered subscriptions.

In the brokered Second Tranche, the Company issued a total of 550,000 units (each, a "Unit"), at a price of $0.20 per Unit and 1,865,000 flow-through shares (each, a "Flow-Through Share") at a price of $0.20 per Flow-Through Share, for gross proceeds of $483,000. Each Unit consists of one common share in the capital of the Company and one common share purchase warrant exercisable at a price of $0.30 until December 7, 2013. The non-brokered subscriptions consisted of 825,000 Flow-Through Shares and 50,000 Units for gross proceeds of $175,000.

Garth Braun, Blackbird CEO, stated: "We are very pleased to close this second tranche of the Private Placement and now have all of the funds in place to meet our capital requirements for the second Montney well that is currently being drilled."

Pursuant to an agency agreement entered into between the Company and the Agent, an aggregate of 144,900 Agent's warrants were issued to the Agent and its selling group, representing 6% of the Units and Flow-Through Shares sold in the brokered Second Tranche. The Agents' warrants are exercisable at a price of $0.30 until December 7, 2013. The Agent has also been paid a cash commission of $28,980, representing 6% of the gross proceeds of the Second Tranche.

All of the securities issued pursuant to the Private Placement and the non-brokered subscriptions are subject to a four month hold period.

The net proceeds from the Private Placement will be applied to the Company's project with Donnybrook Energy Inc. for the lease construction and drilling of the second Montney well at Bigstone, drilling of which has commenced. The proceeds from the Flow-Through Shares sold will be used by Blackbird to incur eligible Canadian exploration expenses.

Blackbird currently anticipates the third and final tranche of the Private Placement and any additional non-brokered subscriptions to close on or about December 14, 2011.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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 has earned 25% 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.

Garth Braun, Chief Executive Officer and Director

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 third tranche of the Private Placement and Donnybrook's ability to drill the next well on the project, the timing of the drilling and any results from the 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.

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