(TSX-V:BBI) Blackbird Energy Inc. (“
Blackbird” or
the “
Company”) is pleased to announce test results
from its 2-20-70-6W6 Middle Montney Delineation well, which is
located on the Company’s Eastern Multi-Interval Delineation Block
(the “
Eastern Block”), and is more than five
kilometers east of Blackbird’s previous operated development
drilling.
“We are pleased to announce the successful
testing of our 2-20-70-6W6 Middle Montney Delineation well at a
short-term rate of 1,163 boe/d, including 824 bbls/d of condensate.
This test represents our highest condensate rate from the Middle
Montney to date, and we believe further confirms the multi-interval
potential of Blackbird's lands, which are situated in what we
consider to be one of the most liquids-rich corridors in the entire
Montney fairway,” said Garth Braun, President, CEO and Chairman of
Blackbird.
Highlights
- Middle Montney Delineation Test: Blackbird’s
2-20-70-6W6 Middle Montney Delineation well flowed at an average
rate of 1,163 boe/d (73% liquids, condensate/gas ratio of 454
bbls/mmcf) over the final 72 hours of a 10-day production
test.
- Estimated Behind Pipe Volumes: Subject to the
tie-in of the 2-20-70-6W6 Middle Montney Delineation well,
management estimates Blackbird’s current productive capacity from
its 9 (9.0) operated wells south of the Wapiti River to be
approximately 4,800 boe/d.
- Advancing Multi-Interval Delineation:
Blackbird will begin testing its 3-27-71-7W6 Upper Montney
Delineation well, which is approximately 14 kilometers north of
previous development drilling, in mid-February.
Middle Montney Delineation
Test
Blackbird is pleased to provide test results
from its 2-20-70-6W6 Middle Montney Delineation well, which is
located on the Company’s Eastern Block and is more than five
kilometers east of Blackbird’s previous operated development
drilling, as detailed below:
Well |
Final 72 Hour Rate of 10 Day Production
Test(1)(2)(3) |
Condensate (bbl/d) |
Natural Gas (mcf/d) |
NGLs (bbl/d) |
CGR(4) (bbls/mmcf) |
Total (boe/d) |
Lateral Length (meters) |
2-20-70-6W6 (Middle Montney) |
824 |
1,877 |
28 |
454 |
1,163 |
2,256 |
1) Numbers
may not add due to rounding. |
|
|
|
|
2) All
disclosed production rates and volumes are presented net of any
load fluid recovery. By the end of the 10-day production test
period the well had recovered approximately 12% of load frac
water. |
3) All
volumes are based on estimated sales production data. |
|
|
|
4)
Condensate/gas ratio (CGR) includes condensate and NGL
production. |
The Company cautions that short-term test rates
are not necessarily indicative of long-term well or reservoir
performance or of ultimate recovery. See "Short Term Test
Rates" below.
The 2-20-70-6W6 Middle Montney Delineation well
was drilled to a total depth of 4,885 meters with a lateral of
2,256 meters and completed over 36 intervals. The well was
completed with a single perf cluster per frac utilizing Plug and
Perf technology to simulate a pinpoint completion. Approximately
4,008 tonnes of sand was placed representing a completion intensity
of approximately 1.8 tonnes per meter. The well was flowed up
casing on clean-up for approximately 10 days. Over the final 72
hours of production testing, prior to running production tubing,
the well flowed at an average rate of 1,163 boe/d (73% liquids, CGR
of 454 bbls/mmcf). At the end of the test period the well had
recovered approximately 12% of load frac water.
Estimated Behind Pipe
Volumes
Including the 2-20-70-6W6 Middle Montney
Delineation well, Blackbird has now drilled, completed and tied-in
or tested a total of 9 (9.0 net) operated wells. Subject to the
tie-in of the 2-20-70-6W6 well to the Company's 100% owned and
operated Pipestone/Elmworth gas processing facility, management
estimates the unrestricted flowing productive capacity of these
wells to be approximately 4,800 boe/d based on the Company's own
production test data. The Company cautions, however, that future
production and reservoir performance cannot be predicted with
certainty and may be less than estimated, and may also be subject
to factors that restrict production to a level below an
unrestricted flowing productive capacity. Blackbird is currently
subject to a take-or-pay gas handling agreement for firm
transportation and processing of sour natural gas that limits the
Company to approximately 6.0 mmcf/d of natural gas and associated
liquids.
Advancing Multi-Interval
Delineation
Blackbird will begin testing its 3-27-71-7W6
Upper Montney Delineation well, which is approximately 14
kilometers north of previous development drilling, in mid-February.
Test results are expected before the end of March, and will include
reservoir pressure data as well as condensate-to-gas ratios. If
successful, the Company believes that these results will support
its view that the majority of Blackbird’s Montney land is situated
in the over-pressured liquids-rich corridor.
About BlackbirdBlackbird Energy Inc. is a highly
innovative oil and gas exploration and development company focused
on the condensate and liquids-rich Montney fairway at
Pipestone/Elmworth, near Grande Prairie, Alberta.
For more information, please view our Corporate
Presentation at www.blackbirdenergyinc.com or contact:
Blackbird Energy Inc.Garth BraunChairman, CEO,
and President(403) 500-5550gbraun@blackbirdenergyinc.com
Allan DixonManager, Business Development(403)
699-9929 Ext. 103adixon@blackbirdenergyinc.com
Advisories
Forward-Looking Statements
This news release contains certain statements
("forward-looking statements") that constitute forward-looking
information within the meaning of applicable Canadian securities
laws. Forward-looking statements relate to future results or
events, are based upon internal plans, intentions, expectations and
beliefs, and are subject to risks and uncertainties that may cause
actual results or events to differ materially from those indicated
or suggested therein. All statements other than statements of
current or historical fact constitute forward-looking
statements. Forward-looking statements are typically, but not
always, identified by words such as "anticipate", "continue",
"estimate", "expect", "intend", "may", "will", "should", "believe",
"plan", "objective", "potential" and similar or other expressions
indicating or suggesting future results or events.
Forward-looking statements are not promises of
future outcomes. There can be no assurance that the results
or events indicated or suggested by the forward-looking statements,
or the plans, intentions, expectations or beliefs contained therein
or upon which they are based, are correct or will in fact occur or
be realized (or if they do, what benefits the Company may derive
therefrom).
In particular, but without limiting the
foregoing, this news release contains forward-looking statements
pertaining to: the multi-interval potential of Blackbird's lands;
the internally estimated unrestricted productive capacity of
approximately 4800 boe/d from the Company's 9 (9.0 net) operated
wells now tied-in or tested (subject to tie-in of the 2-20-70-6W6
Middle Montney Delineation well); expected timing for test results
from the Company's 3-27-71-7W6 Upper Montney Delineation well; and
anticipation that such test results will support Blackbird's views
as to the prospectivity of its acreage.
With respect to the forward-looking statements
contained in this news release, Blackbird has assessed material
factors and made assumptions regarding, among other things: future
commodity prices and currency exchange rates, including consistency
of future oil, NGLs and natural gas prices with current commodity
price forecasts; the Company's continued ability to obtain
qualified staff and equipment in a timely and cost-efficient
manner; infrastructure and facility design concepts that have been
applied by the Company elsewhere in its Pipestone / Elmworth
Project may be successfully applied to the properties; the
predictability of future results based on past and current
experience; the predictability and consistency of the legislative
and regulatory regime governing royalties, taxes, environmental
matters and oil and gas operations, both provincially and
federally; the Company's ability to market production of oil, NGLs
and natural gas successfully to customers; the timing and success
of drilling and completion activities (and the extent to which the
results thereof meet expectations); the Company's future production
levels and amount of future capital investment, and their
consistency with the Company's current development plans and
budget; future capital expenditure requirements and the sufficiency
thereof to achieve the Company’s objectives; the successful
application of drilling and completion technology and processes;
the applicability of new technologies for recovery and production
of the Company's reserves and other resources, and their ability to
improve capital and operational efficiencies in the future; the
recoverability of the Company's reserves and other resources; the
Company’s ability to economically produce oil and gas from its
properties and the timing and cost to do so; the performance of
both new and existing wells; future cash flows from production;
future sources of funding for the Company's capital program; the
Company's future debt levels; geological and engineering estimates
in respect of the Company's reserves and other resources; the
accuracy of geological and geophysical data and the interpretation
thereof; the geography of the areas in which the Company conducts
exploration and development activities; the timely receipt of
required regulatory approvals;; the access, economic, regulatory
and physical limitations to which the Company may be subject from
time to time; the impact of competition on the Company; and the
Company's ability to obtain external financing when required and on
acceptable terms.
The forward-looking statements contained herein
reflect management's current views, but the assessments and
assumptions upon which they are based may prove to be incorrect.
Although Blackbird believes that its underlying assessments and
assumptions are reasonable based on currently available
information, undue reliance should not be placed on forward-looking
statements, which are inherently uncertain, depend upon the
accuracy of such assessments and assumptions, and are subject to
known and unknown risks, uncertainties and other factors, both
general and specific, many of which are beyond the Company's
control, that that may cause actual results or events to differ
materially from those indicated or suggested in the forward-looking
information and statements. Such risks, uncertainties and other
factors are discussed in the Company’s current annual information
form , annual and interim management’s discussion and analysis, and
other documents filed by it from time to time with securities
regulatory authorities in Canada, copies of which are available
electronically on SEDAR at www.sedar.com, and include, but are not
limited to: volatility in market prices and demand for oil, NGLs
and natural gas and hedging activities related thereto; general
economic, business and industry conditions; variance of the
Company's actual capital costs, operating costs and economic
returns from those anticipated; the ability to find, develop or
acquire additional reserves and the availability of the capital or
financing necessary to do so on satisfactory terms; risks related
to the exploration, development and production of oil and natural
gas reserves and resources; negative public perception of oil and
natural gas development and transportation, hydraulic fracturing
and fossil fuels; actions by governmental authorities, including
changes in government regulation, royalties and taxation; potential
legislative and regulatory changes; the rescission, or amendment to
the conditions of, groundwater licenses of the Company; management
of the Company's growth; the ability to successfully identify and
make attractive acquisitions, joint ventures or investments, or
successfully integrate future acquisitions or businesses; the
availability, cost or shortage of rigs, equipment, raw materials,
supplies or qualified personnel; adoption or modification of
climate change legislation by governments; the absence or loss of
key employees; uncertainty associated with estimates of oil, NGLs
and natural gas reserves and resources and the variance of such
estimates from actual future production; dependence upon
compressors, gathering lines, pipelines and other facilities,
certain of which the Company does not control; the ability to
satisfy obligations under the Company's firm commitment
transportation arrangements; the uncertainties related to the
Company's identified drilling locations; the high-risk nature of
successfully stimulating well productivity and drilling for and
producing oil, NGLs and natural gas; operating hazards and
uninsured risks; the possibility that the Company's drilling
activities may encounter sour gas; execution risks associated with
the Company's business plan; failure to acquire or develop
replacement reserves; the concentration of the Company's assets in
the Pipestone / Elmworth Project area; unforeseen title defects;
aboriginal claims; failure to accurately estimate abandonment and
reclamation costs; development and exploratory drilling efforts and
well operations may not be profitable or achieve the targeted
return; horizontal drilling and completion technique risks and
failure of drilling results to meet expectations for reserves or
production; limited intellectual property protection for operating
practices and dependence on employees and contractors; third-party
claims regarding the Company's right to use technology and
equipment; expiry of certain leases for the undeveloped leasehold
acreage in the near future; failure to realize the anticipated
benefits of acquisitions or dispositions; failure of properties
currently held or acquired in the future to produce as projected
and inability to accurately determine reserve and resource
potential, identify liabilities associated with acquired properties
or obtain protection from sellers against such liabilities; changes
in the application, interpretation and enforcement of applicable
laws and regulations; restrictions on drilling intended to protect
certain species of wildlife; potential conflicts of interests;
actual results differing materially from management estimates and
assumptions; seasonality of the Company's activities and the
Canadian oil and gas industry; alternatives to and changing demand
for petroleum products; extensive competition in the Company's
industry; lower oil, NGLs and natural gas prices and higher costs;
failure of 2D and 3D seismic data used by the Company to accurately
identify the presence of oil and natural gas; risks relating to
commodity price hedging instruments; terrorist attacks or armed
conflict; cyber security risks, loss of information and computer
systems; inability to dispose of non-strategic assets on attractive
terms; security deposits required under provincial liability
management programs; reassessment by taxing authorities of the
Company's prior transactions and filings; variations in foreign
exchange rates and interest rates; third-party credit risk
including risk associated with counterparties in risk management
activities related to commodity prices and foreign exchange rates;
sufficiency of insurance policies; potential litigation; variation
in future calculations of non-IFRS measures; sufficiency of
internal controls; breach of agreements by counterparties and
potential enforceability issues in contracts; impact of expansion
into new activities on risk exposure; inability of the Company to
respond quickly to competitive pressures; and the risks related to
the common shares and warrants that are publicly traded. This
list is not exhaustive.
The forward-looking statements contained in this
news release are made as of the date hereof and Blackbird assumes
no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
unless required by applicable securities laws. All
forward-looking statements herein are expressly qualified by this
advisory.
Short Term Test Rates
The Company cautions that short-term test rates
are not necessarily indicative of long-term well or reservoir
performance or of ultimate recovery. Such rates are
preliminary in nature and may not be representative of stabilized
on-stream production rates. Actual results will differ from
those realized during a short term measurement period, and the
difference may be material. Production over a longer period will
also experience natural decline rates, which can be high in the
Montney play. Short-term test rates cannot be relied upon as
providing assurance of longer term production.
Oil and Gas Measures
This news release discloses certain production
information on a barrels of oil equivalent ("boe") basis with
natural gas converted to barrels of oil equivalent using a
conversion factor of six thousand cubic feet of gas to one barrel
of oil (6:1). Condensate and other NGLs are converted to boes
at a ratio of 1 bbl:1 bbl. Boes may be misleading, particularly if
used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based
roughly on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the Company's sales point. Although the 6:1
conversion ratio is an industry accepted norm, it is not reflective
of price or market value differentials between product types. Based
on current commodity prices, the value ratio between crude oil and
natural gas is significantly different from the 6:1 energy
equivalency ratio. Accordingly, using a conversion ratio of 6 mcf:1
bbl may be misleading as an indication of value.
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 press release.
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