VANCOUVER, BRITISH COLUMBIA--(Marketwire -02/29/12)- Blackbird Energy Inc. (TSX-V: BBI.V - News) ("Blackbird" or the "Company"), further to our press release of February 22, 2012, is pleased to announce that the negotiations have been completed and the "Cross-Conveyed Pooling and Participation Agreement" (the "Agreement") has been signed to pool 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 for the purpose of drilling an extended reach horizontal, Joint Well on the Pooled Lands. Blackbird will hold an undivided 12.5% pooled interest in the Pooled Lands and will participate as to a 12.5% working interest in the development of the Pooled Lands, which may potentially include drilling up to four extended reach Joint Wells on the Pooled Lands. After pooling, Blackbird will hold interests in a total of 8 sections (5,120 acres) or 1.75 net sections (1,120 acres) of land at Bigstone. Pre-pooling, Blackbird held a 25% interest in 7 sections (4,480 acres) or 1.75 net sections (1,120 acres) at Bigstone.
The initial Joint Well on the Pooled Lands is to be drilled from its surface location within LSD 4 of section 28-060-22W5M to the Triassic Montney formation underlying the Pooled Lands within LSD 5 of section 28-060-22W5M and then drilled horizontally approximately 2,568 meters through the Triassic Montney formation to a bottom hole location on the Pooled Lands within LSD 13 of section 33-060-22W5M. Donnybrook Energy Inc., operator of drilling operations, has secured a drilling rig and expects to commence drilling March 2, 2011.
Garth Braun, CEO states, "Trilogy has been very active and successful in utilizing horizontal drilling and multi stage fracturing techniques to develop resource plays including the Montney, and we look forward to the positive results this relationship should achieve. Recent well licenses issued in December and January for extended reach Montney horizontals at locations in close proximity to our Bigstone acreage by industry competitors provides us with further evidence of the reserves potential of the Montney. The pooling of a portion of our lands has resulted in expanding our gross acreage position, a feat (gaining land position) of which is becoming more and more difficult with the heightened focus the Bigstone area appears to be attracting."
Blackbird's Pre Pooling, Bigstone Project was comprised of lands and licences covering a total of 4,480 gross 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 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 the 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.
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