Blackbird Energy Inc.
TSX VENTURE : BBI

Blackbird Energy Inc.

December 15, 2011 08:00 ET

Blackbird Energy Provides Drilling Update on Bigstone Montney Well and Announces Closing Of Third and Final Tranche of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 15, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Blackbird Energy Inc. (TSX VENTURE:BBI) ("Blackbird" or the "Company"), is pleased to announce that further to its November 30, 2011 news release, that it has been informed by the operator, Donnybrook Energy Inc., that the DEI Bigstone Hz 15-32-60-22 W5M well (25% working interest to Blackbird) has been drilled to total vertical depth, including the build section, being the process of gradually increasing the drilling slant angle from vertical to horizontal, into the Montney formation. Intermediate casing is currently being installed and cemented into place, subsequent to which drilling of the 2,500 meter lateral through the Montney formation will commence. The drilling program calls for the well to be drilled to a total measured depth of approximately 5,150 meters from surface location 3-29-60-22W5, cased and prepared for completion and fracing operations within an approximate 35 day time frame. The project operations are currently progressing within the targeted time frame and budget.

Blackbird today also reported that it has raised additional gross proceeds of $836,500 in a combined closing of the third and final tranche (the "Third 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 Third Tranche, the Company issued a total of 835,000 units (each, a "Unit"), at a price of $0.20 per Unit and 2,280,000 flow-through shares (each, a "Flow-Through Share") at a price of $0.20 per Flow-Through Share, for gross proceeds of $623,000. 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 14, 2013. The non-brokered subscriptions consisted of 550,000 Flow-Through Shares and 517,500 Units for gross proceeds of $213,500.

Pursuant to an agency agreement entered into between the Company and the Agent, an aggregate of 186,900 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 Third Tranche. The Agents' warrants are exercisable at a price of $0.30 until December 14, 2013. The Agent has also been paid a cash commission of $37,380, representing 6% of the gross proceeds of the Third 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 announced that it has granted an aggregate of 2,100,000 incentive stock options to certain officers, directors and consultants. Such options are exercisable at the price of $0.20 until December 15, 2016. Currently, an aggregate of 480,627 shares remain available for issuance under the Company's stock option plan.

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 Donnybrook's ability to drill and complete the next two wells on the project, the timing of such drilling, the timing and completion of any subsequent tie ins or production, and any results from the wells 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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