VANCOUVER, BRITISH COLUMBIA--(Marketwire -04/10/12)- Blackbird Energy Inc. (TSX-V: BBI.V - News) ("Blackbird" or the "Company"), is pleased to provide the following update on our Bigstone, highly liquids rich natural gas resource project.
-- The well 13-33-060-22W5 has been drilled to total measured depth of
5,336 meters with a 2,590 meter horizontal length;
-- Surface production facilities located in Lsd 3-29-060-22W5 and the 1.6
mile, 8 inch pipeline to the Delphi operated gas gathering system tie-in
point has been completed;
-- Production from our wells is anticipated to commence mid to late April,
2012 upon completion of certain operations by Delphi at the Lsd 1-19
tie-in point; and
-- Fourth Montney extended reach horizontal well location surveyed and
anticipated to spud in June, 2012.
Further to our press release of February 2012, and pursuant to the "Cross-Conveyed Pooling and Participation Agreement" (the "Agreement") covering the pooling of the P&NG rights in the Triassic Montney formation held by Blackbird and partners in Section 28-060-22W5 with those held jointly by Trilogy Energy and TAQA North in the adjacent Section 33-060-22W5, the initial extended reach, horizontal Joint Well on the Pooled Lands was spud on March 4 and reached total depth on April 2, 2012. The well 13-33-060-22W5 was drilled from its surface location at 4-28-060-22W5 to a total measured depth of 5,336 meters with a 2,590 meter horizontal length. In accordance with the Agreement, Trilogy will assume the role of Operator during the completion phase of operations. The well is currently being conditioned to run a liner and packer assembly in preparation for conducting a multi-stage (up to a 27 stage) fracture program. Completion operations are scheduled to be underway as soon as practicable. Blackbird holds an undivided 12.5% pooled interest in the Pooled Lands and participated as to a 12.5% working interest in the drilling of the 13-33-060-22W5 well.
The 13-33-060-22W5 well was drilled through the Montney at excellent penetration rates with strong gas shows. The well is located approximately 0.5 miles directly east and runs parallel to our recently drilled and completed extended reach horizontal well, 15-32-60-22W5 (25%WI). The 15-32-60-22W5 well was also drilled at excellent penetration rates with strong gas shows.
The installation of surface facilities, including 3 phase separators, line heaters, tanks, measurement and monitoring equipment and construction of a 1.6 mile, 8 inch pipeline to tie-in to the Delphi operated gas gathering system has been completed (Blackbird holds a 31.25%WI in the system). The site of the facilities is the same surface location used to drill the 14-29 and 15-32 wells, 03-29-060-22W5 and both will be produced through the facilities. The pipeline will carry gas and liquids from our facilities to the Delphi system tie-in point in Lsd 01-19-060-22W5. Production from our wells will be ready to begin as soon as Delphi completes certain construction and start up operations at the 1-19 tie-in point, anticipated to be mid to late April. The pipeline right of way to tie-in the 13-33-060-22W5 well has been surveyed and laying the line is tentatively planned to begin in June, contingent upon surface access conditions.
Donnybrook has informed Blackbird that it has surveyed a number of new drilling locations and is planning to drill the next extended reach horizontal well on one of the locations on the west side of our Bigstone acreage block (25% W.I.) in June, 2012.
Garth Braun, CEO states, "We are very pleased with the progress made to date on both the drilling operations and the completion of the production facilities. We feel that this marks a very significant stage in the development of our Company and the Bigstone project. We are looking forward to further success in the project as we move to production and continue to pursue our drilling program."
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.
Blackbird's wholly-owned subsidiary Blackbird Energy Holdings 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 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. 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.