2012-11-27 17:05 ET - News Release
Mr. Garth Braun reports
BLACKBIRD ENERGY INC. PROVIDES OPERATIONAL UPDATE AND ANNOUNCES FILING OF ANNUAL FINANCIAL STATEMENTS AND 2012 RESERVES INFORMATION
Blackbird Energy Inc. is providing an operational update on its Bigstone Montney formation, liquids-rich natural gas resource play.
The tubing string has been installed in the DEI Bigstone Hz 13-33-60-22w5 well (Blackbird working interest: 12.5 per cent). After tubing installation, the well was flowed back for a period of 32.25 hours, and, during the final 24-hour period, it produced at an average rate of 2.87 million cubic feet per day (Blackbird net: 360,000 cubic feet per day) and 510 barrels per day (Blackbird net: 64 barrels per day) of condensate and load fluid for a combined barrel of oil equivalent rate of 988 barrels of oil equivalent per day (123 barrels of oil equivalent per day to Blackbird). Approximately 75 per cent of the load fluid used during fracking operations has been recovered to date. The 13-33 well was drilled to a total measured depth of 5,336 metres and completed with a 20-stage frack.
The DEI Bigstone Hz 13-33-60-22w5 tie-in operations, including construction of surface facilities and laying the pipeline connection to the Donnybrook-operated Bigstone gathering system, has been completed. Production from the 13-33-60-22w5 well commenced on Nov. 25, 2012.
Blackbird is also pleased to announce that production revenues from the 15-32-60-22w5 and 14-29-60-22w5 wells are now being received from the operator.
The company's year-end independent reserve evaluation, effective July 31, 2012, prepared by GLJ Petroleum Consultants Ltd., an independent engineering firm, has estimated that total proved plus probable reserves of 625,000 barrels of oil equivalent were recoverable from 2.25 sections of the company's interest in the eight-section block, based upon the drilling of the first three wells at Bigstone. The remaining undeveloped interest lands are offset by completed Montney wells drilled by industry participants in the area, thereby substantially derisking the Montney potential of the remaining acreage. The next phase of development work at Bigstone will focus on proving up the potential of the remaining 5.75 sections of undrilled lands.
Garth Braun, chief executive officer of Blackbird, stated: "The tie-in of the third well at Bigstone is a continued enhancement of Blackbird's production revenue. The recently announced acquisition of Celtic Exploration Inc. by Exxon Mobile Corp. further highlights the interest in companies that are participating in development of the Montney formation. Blackbird is focused on increasing its position in the development of the Montney formation and identifying new opportunities to grow shareholder value."
Blackbird today also announced that it has filed its audited financial statements and related management's discussion and analysis for the year ended July 31, 2012, with the Canadian securities regulatory authorities on SEDAR. In addition, the company has filed its statement of reserves data and other oil and gas information for the year ended July 31, 2012, as mandated by National Instrument 51-101 (standards of disclosure for oil and gas activities) of the Canadian Securities Administrators.
Blackbird's reserves were evaluated as at July 31, 2012, by GLJ. GLJ's evaluation was conducted in accordance with standards set out in the Canadian oil and gas evaluation handbook and is compliant with NI 51-101.