BBI Update from Katusa August Newsletter Blackbird Energy
With spring breakup now over, Blackbird will be going back out into the field to spud a new well in the prolific Montney formation. Drilling is expected to start in early August.
Based on the most recent financial statements, the company has CAD$5 million left in cash. This means one of three things is going to happen.
Option 1: Garth sells Blackbird Energy to a larger company before he runs out of cash.
Option 2: Garth completes a Joint Venture where another company farms into some land and pays a promote.
Option 3: Garth will need to line up funds to finance next year’s drill program.
At this point, I have made my bet and have invested millions into Blackbird Energy. I will not be buying any more shares until there is a significant corporate development. Looking back at all my research reports that I wrote on Blackbird, I must admit I thought Blackbird would have been bought out by now. This is the point in my investment thesis that tests my patience. I have to remind myself of the facts and I do believe the end game will be successful (but it’s taking longer than I expected).
Investment Recommendation: Unchanged. New subscribers buy Under CAD$0.35