bbi new with pen
Blackbird Energy acquires 1,280 acres at Mantario
2013-06-20 08:43 ET - News Release
Mr. Garth Braun reports
BLACKBIRD ENERGY ANNOUNCES NEW OIL EXPLORATION PROJECT IN THE MANTARIO, SK AREA FOCUSING ON THE LOWER MANNVILLE AND A FARMOUT AGREEMENT WITH PENNANT ENERGY INC.
Blackbird Energy Inc. has completed the following on its new oil exploration project in the Mantario area of west-central Saskatchewan:
- Acquired more than 1,280 acres of petroleum and natural gas rights targeting the Lower Mannville;
- Completed and evaluated 2-D and 3-D seismic on the lands;
- Entered into a farm-out agreement with Pennant Energy Inc.
Under the terms of the agreement, Pennant may, subject to approval from the TSX Venture Exchange, earn a 30-per-cent working interest in certain lands and leases comprising the Mantario project. To earn the 30-per-cent interest, Pennant must pay to Blackbird 50 per cent of the land acquisition costs incurred to date, including brokerage and transfer costs ($200,000 net estimated), and 50 per cent of the 3-D seismic program including geological and geophysical interpretation ($125,000 net estimated). Pennant will also be required to pay 50 per cent of the drilling, completing, equipping and tie-in costs of the test well to earn the working interest.
Subject to receipt of exchange approval, the agreement provides that Blackbird will serve notice of its intent to spud the test well on or before Aug. 1, 2013. Upon receipt of such notice Pennant will advance 50 per cent of the drill and case cost estimate, being $221,907, to Blackbird.
Garth Braun, president and chief executive officer of Blackbird, stated: "Over the last year the Blackbird team has focused on originating new projects. The Mantario project announcement is the culmination of an extensive due diligence process and the assembling of a core land position. The team continues to focus on identifying new opportunities that will deliver value to our shareholders. In the last year several wells have been drilled in the Mantario area of west-central Saskatchewan and the initial production rates have been in the range of 65 to 100 barrels of oil per day. Based on these metrics, Blackbird will be looking to aggressively explore and develop this oil project."
The agreement remains subject to exchange approval.
We seek Safe Harbor.