VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 26, 2013) - Blackbird Energy Inc. ("Blackbird" or the "Company") (TSX VENTURE:BBI) is pleased to announce that it has completed the first Flaxcombe Sparky zone workover in its well, 22/16-13-29-27W3 (the "Flaxcombe Sparky Well"). The workover was completed on February 16, 2013 at a cost of only $45,000. Production commenced immediately upon completion of the workover with the well averaging 25 barrels of oil per day since that time. The successful workover of the Flaxcombe Sparky Well has more than doubled production from the Flaxcombe Project to approximately 53 bopd.
The Flaxcombe Project is evolving into a core holding of Blackbird, comprised of three producing wells from the Sparky zone and several other wells which have been identified as near term workover candidates. In addition to the workovers the Blackbird team has identified two development oil drilling locations based on a 3D technical review.
Garth Braun, CEO of Blackbird stated, "The Blackbird management team identified that the Flaxcombe Project offered tremendous value to the Company both through its development drilling and also through the implementation of low cost workovers and recompletion of wells that had been shut in or had been producing minimally. Blackbird has a very strong team in the field implementing these workovers on a cost effective basis and achieving excellent results. The Flaxcombe Project is the first acquisition by our new Blackbird team and we are very pleased with the incremental growth in the production to date."
Mr. Braun went on to state, "Our Blackbird team is focused on diversifying its project mix with the addition of high quality oil projects in southwest Saskatchewan. We continue to focus on originating several high quality plays through the assembly of land positions."
The Alsask Project is comprised of 1120 acres in the Alsask area on the Alberta/Saskatchewan border in which Ruger Energy Inc. ("Ruger"), Blackbird's subsidiary, holds a 100% working interest. The Alsask Project has 3 producing Basal Mannville oil wells and 1 water disposal well. Ruger also has 3D seismic coverage over the full 1120 acres and has identified one development oil drilling location and one exploration oil drilling location.
The Flaxcombe Project is comprised of a total of 5,041 acres (net 2,393 acres) in West Central Saskatchewan. Blackbird holds a 100% working interest in a Sparky oil property with 3 producing oil wells. The Flaxcombe Project includes 3D seismic coverage over the complete oil pool. Two development oil drilling locations have been identified based on the 3D technical review.
Blackbird's Bigstone Project is comprised of lands and licenses covering a total of 5,120 acres (net 1,120 acres), in Township 60, ranges 22 and 23W5 at Bigstone, Alberta. By completing the terms of a farm in agreement with Donnybrook Energy Inc., Blackbird earned 25 per cent of Donnybrook'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
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.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the work over and land assembly projects. 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.