VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 1, 2012) - Blackbird Energy Inc. (TSX VENTURE:BBI) ("Blackbird"), is pleased to provide the following Bigstone operations update.
Blackbird's Bigstone HZ 14-29-60-22w5 Montney discovery well (Blackbird 37.5% BPO/25% APO) was placed on production in mid-June 2012 and during the first 42 days of operation produced at an average rate of 1.61 mmcf/d (605 mcf/d Blackbird W.I.) and 72.8 bbls/d (27.3 bbls/d Blackbird W.I.) of condensate for a combined oil equivalent total of 341 BOE/D (128 BOE/D Blackbird W.I.). Further NGLs will be extracted during processing at the shallow cut plant and are estimated to be 30-35 bbls/mmcf of raw gas. Blackbird has a 37.5% W.I. in the 14-29 well subject to a 2% GORR, plus a 10% ORR on its W.I. until payout at which time Blackbird reverts to a 25% W.I. and 2% GORR.
Blackbird's Bigstone HZ 15-32-60-22 W5M well (Blackbird 25% W.I. subject to a 2% GORR) commenced production on July 16 and for the first 7 producing days has been producing natural gas, free condensate and NGLs which will be extracted during processing. The 15-32 well had technical problems during the completion and only 6 stages of the planned 23 stage frac were completed successfully. The well is currently producing and the initial production rates are encouraging. The well has averaged 1.75 mmcf/d (437 mcf/d Blackbird's W.I.) with 153 bbls/d (38.25 bbls/d Blackbird's net W.I.) of condensate for a total of 445 BOE ( 111 BOE/D Blackbird net W.I.). The current fluid production includes both load fluids and free condensate, as 100 percent of the load fluids have not been fully recovered to date.
Blackbird's Bigstone Hz 13-33-60-22w5 well was drilled to a total measured depth of 5,336m and completed with a 23 stage frac. After initial flow back and clean up, the well is currently waiting on dry weather to install production tubing and final flow testing as well as commence construction and installation of surface facilities. The well will be tied into the Donnybrook operated Bigstone pipeline system as soon as access conditions permit. All operations at 13-33 have encountered delays due to heavy rain which has made access to the lease site difficult. As soon as surface conditions dry out, operations at 13-33 will commence. Flow rates on the well are currently not being released by the partners until final testing has been completed.
Industry activity in the Bigstone area continues to prove up the potential of Blackbird's land holdings to the west. The most recent well to be announced was an extended reach HZ that terminated 195 m south of Blackbird's 25% W.I. lands in Twp 60-23w5. The operator has reported the well tested an average 16 mmcf/d and approximately 800 bbls of condensate per day at the end of the test. This compares very well to an initial extended reach HZ well by the same operator which, for a mile of HZ length offsets Blackbird's 25% W.I. lands in 60-22w5 and is only 200m west of Blackbird's lands. The initial well tested 12.5mmcf/d and 770 bbls per day of condensate. These wells continue to demonstrate the excellent reservoir potential of the Montney Formation underlying the western sections of Blackbird's 25% W.I. lands in the Bigstone area. Blackbird has a 25% interest in 4 sections (2,560 acres, 640 acres net) in the western portion of its Bigstone prospect area that have not been drilled to date.
Based on results to date, four new horizontal Montney drilling locations at Bigstone have been surveyed. The timing of the drilling of the additional wells will be finalized in the fourth quarter of 2012.
Garth Braun, CEO of Blackbird stated, "The commencement of production at Bigstone is a major milestone achievement for Blackbird and will be foundational to the funding of future development activities. Blackbird's horizontal wells have efficiently evaluated the Montney formation and with competitor drilling activity all around the Company's lands the play has been largely de-risked."
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.
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 successful completion of any pooling arrangements in regards to adjacent lands, closing of the Private Placement and the operator'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 and the timing of the construction and completion of surface facilities for the tie in of production. 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.
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.
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.