CALGARY, ALBERTA--(Marketwired - April 3, 2014) - Blackbird Energy Inc. ("Blackbird" or the "Company") (TSX VENTURE:BBI) is very pleased to be able to announce that it has increased its Elmworth (Greater Karr) Montney acreage to 31 sections of land (19,840 acres) including 27 sections of land (17,280 acres) that are contiguous (100% WI).
The 31 sections of land at Elmworth acquired to date followed a detailed technical assessment of the region that included a petrophysical evaluation of pre-existing wells and the mapping of oil and gas in place across what Blackbird believes to be an area characterized by superior liquids-rich gas potential. The results from a recently drilled competitor well, located less than 8 kilometres (5 miles) from the Blackbird lands, demonstrated exceptional deliverability from the Upper Montney. Over its first six weeks of production, the nearby competitor's well yielded 25,000 bbls of 54 API condensate and 138 mmcf of natural gas (595 bbls/d and 3.3 mmcf/d). Blackbird currently believes the exploration risk for the play to have been significantly reduced through the operations of competitors active in the area who have continued to acquire petroleum and natural gas rights on lands in proximity to Blackbird's acreage at prices in excess of $2.18 million per section.
Based on our petrophysical evaluation, mapping and technical review of producing wells in the area, Blackbird has identified what it considers to be a thick hydrocarbon-charged zone throughout the upper 40 metres of the Upper Montney interval. Blackbird believes that this Upper Montney zone will be conducive for development using horizontal wells and which Blackbird intends to target with its first well. Based on current industry practices, development of the entire acreage with one horizontal well spaced every quarter mile could require a total of 100 gross wells each one mile in length. Given the existence of productive Middle and Lower Montney in the area, additional laterals per well could be required to access the entire hydrocarbon-bearing section.
The Elmworth property is accessible for field operations year-round and is located within 1 mile of a major, midstream operated natural gas pipeline with capacity for new hydrocarbons.
Blackbird has begun to establish surface locations for the placement of its drilling pads as part of the overall development of the Elmworth property.
Blackbird intends to license its first Elmworth well in the third quarter of 2014 and is currently in active conversations to find a strong industry partner to help expedite this large drilling program.
Blackbird will continue to enhance its land position at Elmworth going forward and has already begun assembling its next Montney land package.
Blackbird Energy Inc. is a Western Canadian based company that explores, develops and produces oil and natural gas in Western Canada. The Company is managed by a proven technical team. Blackbird trades on the TSX Venture Exchange under the symbol BBI.
Blackbird's team is focused on originating new high quality oil projects through the assembly of land positions in southwest Saskatchewan and Alberta.
For more information please visit the company's website and view the corporate presentation at www.blackbirdenergyinc.com.
On behalf of the board of BLACKBIRD ENERGY INC.
Garth Braun, Chief Executive Officer and Director
Disclaimer for Forward-Looking Information
Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook, or statements that certain events or conditions "may" occur. Forward-looking information in this press release includes, but is not limited to, statements regarding the expectations of management of Blackbird regarding the resource production potential of the Elmsworth property and of the surrounding area, the reduced exploration risk of the Elmsworth property, and the Company's plans and/or ability to find an industry partner for any proposed drilling program on the Elmsworth property. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation:
(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. Although Blackbird believes that the expectations reflected in its forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because Blackbird can give no assurance that such expectations will prove to be correct. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Blackbird and described in the forward-looking information. The forward-looking information contained in this press release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward looking information contained in this press release is expressly qualified by this cautionary statement.
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