Blackbird to acquire Saskatchewan oil and gas assets Didn't even realize Blackbird announced news this AM. Purchase price rather small for two sections???
2013-09-10 08:17 ET - News Release
Mr. Garth Braun reports
BLACKBIRD ENERGY INC. ANNOUNCES AGREEMENT TO PURCHASE TWO SECTIONS OF P&NG RIGHTS IN SOUTH EAST SASKATCHEWAN
Blackbird Energy Inc. is proposing the acquisition of certain oil and gas assets through its wholly owned subsidiary, Ruger Energy Inc., for total cash consideration of $52,000. The vendor of the assets, which consist of two sections of petroleum and natural gas rights comprising a total of 1,280 acres located in Bromhead in southeast Saskatchewan, is Weyburn Energy Ltd.
The acquisition will provide Blackbird with a 100-per-cent working interest in two sections at an average cost of $26,000 per section, subject to a 6-per-cent non-convertible gross overriding royalty (GORR) with a maximum of 25-per-cent deductions in favour of the vendor and a 2-per-cent GORR in favour of Ralco Ventures. The acquisition is expected to close on Oct. 1, 2013.
Garth Braun, president and chief executive officer of Blackbird, stated: "The Bromhead project is located two miles west of an existing Midale oil pool that has produced in excess of 2.3 million barrels of light oil and south of the Weyburn field that has produced approximately one billion barrels of light oil. The Blackbird team once again is focused on establishing the Midale oil play through two low-cost re-entries, with each re-entry currently estimated to cost $250,000 to re-enter, complete and equip."
We seek Safe Harbor.