CALGARY, ALBERTA--(Marketwired - Sept. 22, 2016) - Blackbird Energy Inc. (TSX VENTURE:BBI) ("Blackbird" or the "Company") is pleased to announce that it has received final approval from the TSX Venture Exchange for its proposed acquisition of an indirect 10% minority interest in Stage Completions Inc. ("Stage") for a cash purchase price of $3.0 million (the "Transaction") pursuant to the terms of a subscription agreement entered into between Blackbird and SC Holding Corporation ("SCHC"), the majority shareholder of Stage (the "Subscription Agreement"). Stage is a Canadian technology and services company that specializes in pin-point multistage completions.
The Transaction is subject to certain financial and operational conditions including the receipt of an independent valuation report regarding Stage and the successful deployment of Stage's Bowhead II system (the "System") in two third party wells (the "Condition Wells"). The independent valuation report, performed by a large international accounting firm, was received by Blackbird in September, 2016, and as such, this condition has been satisfied.
The System was successfully installed and tested in the first of the Condition Wells during September, 2016. This successful installation and test followed the successful installation and test of the System in Blackbird's Cardium water disposal well during July, 2016.
At this time, the Transaction remains subject to the successful installation and test of the System in the second of the two Condition Wells, which is expected to occur in October or November, 2016. As a result, Blackbird currently expects closing of the Transaction to occur by the end of November, 2016. To accommodate the new closing timeline, Blackbird and SCHC have entered into an amending agreement dated September 22, 2016 (the "Amending Agreement") extending the closing date for the Transaction to no later than December 15, 2016.
For further information regarding the Transaction and the Conditions please see the Company's material change report dated July 29, 2016 and the Subscription Agreement, including the Amending Agreement, which is available on Blackbird's SEDAR profile at www.sedar.com.
Blackbird Energy Inc. is a highly innovative oil and gas exploration and development company focused on the condensate and liquids-rich Montney fairway at Elmworth, near Grande Prairie, Alberta.
For more information please view our Corporate Presentation at www.blackbirdenergyinc.com.
Advisories and Forward Looking Information
This press release contains forward-looking statements or information (collectively referred to herein as "forward-looking statements"). 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 and are not guarantees of future performance of the Company. Such forward looking statements include but are not limited to management's expectations as to the timing for, or success of, the installation and test of the System in the second of the two Condition Wells as well as timing for closing of the Transaction.
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 and business conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with oil and gas exploration, development and production including drilling and completion risks, (3) the price of and demand for oil and gas and their effect on the economics of oil and gas exploration, (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. Should one or more of these risks or uncertainties materialize, or should any of the Company's assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. Readers are cautioned that the foregoing list of risks, uncertainties and other factors is not exhaustive. Unpredictable or unknown factors not discussed could also have material adverse effects on forward-looking statements. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are dependent on other factors, and the Company's course of action would depend on its assessment of the future considering all information then available. All forward-looking statements in this press release are expressly qualified in their entirety by these cautionary statements. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
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 press release.