VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/20/13 -- Blackbird Energy Inc. ("Blackbird" or the "Company") (TSX VENTURE: BBI) is pleased to announce that it has completed the following on its new oil exploration project in the Mantario area of West Central Saskatchewan ("Mantario Project"): Acquired more than 1,280 acres of petroleum and natural gas rights targeting the Lower Mannville, completed and evaluated 2D and 3D seismic on the lands, and entered into a Farm-out Agreement (the "Agreement") with Pennant Energy Inc. ("Pennant").
Under the terms of the Agreement, Pennant may, subject to approval from the TSX Venture Exchange (the "Exchange"), earn a 30% working interest in certain lands and leases comprising the Mantario Project. To earn the 30% interest, Pennant must pay to Blackbird 50% of the land acquisition costs incurred to date including brokerage and transfer costs ($200,000 net estimated), and 50% of the 3D seismic program including geological and geophysical interpretation ($125,000 net estimated). Pennant will also be required to pay 50% 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 August 1, 2013. Upon receipt of such notice Pennant will advance 50% of the drill and case cost estimate, being $221,907, to Blackbird.
Garth Braun, President and CEO 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.
The Flaxcombe Project is comprised of a total of 5,041 acres (net 2,393 acres) in West Central Saskatchewan. Blackbird, through its only owned subsidiary Ruger Energy Inc. ("Ruger"), holds a 100% working interest in a Sparky oil property with five producing oil wells and two gas wells. The Flaxcombe Project includes 3D seismic coverage over the complete oil pool. Two development oil drilling locations have been identified based on the 3D technical review.
The Alsask Project is comprised of 1,120 acres in the Alsask area on the Alberta/Saskatchewan border in which Ruger, holds a 100% working interest. The Alsask Project has two producing Basal Mannville oil wells and one water disposal well. Ruger also has 3D seismic coverage over the full 1,120 acres and has identified one development oil drilling location and one exploration oil drilling location.
The Bigstone Project is comprised of lands and licenses covering a total of 5,120 acres (net 1,120 acres), in Township 60, ranges 22 and 23W5 at Bigstone, Alberta. By completing the terms of a farm in agreement with Donnybrook Energy Inc., Blackbird earned 25% of Donnybrook's interest in the Bigstone lands and in any future operations within an area of mutual interest.
Blackbird's team is focused on originating new high quality oil projects through the assembly of land positions in southwest Saskatchewan and Alberta.
Blackbird Energy Inc. is a Western Canadian based company that explores, develops and produces oil and natural gas in Western Canada. The Company is managed by a proven technical team. Blackbird trades on the TSX Venture under the symbol BBI.
On behalf of the board of
BLACKBIRD ENERGY INC.
Garth Braun, Chief Executive Officer and Director
Disclaimer for Forward-Looking Information
This press release contains forward-looking information that involves various risks and uncertainties regarding future events related to the completion of the Farmout Agreement, TSX Venture Exchange acceptance of such agreement and the Company's proposed exploration plans and the productivity of any wells that may be drilled in the Mantario area. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements and are not guarantees of future performance of the Company. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with oil and gas exploration and production, (3) a decreased demand for natural gas, (4) any number of events or causes which may delay or cease exploration and development of the Company's property interests, such as environmental liabilities, weather, mechanical failures, safety concerns and labour problems, (5) the risk that the Company does not execute its business plan, (6) inability to retain key employees, (7) inability to finance operations and growth, and (8) other factors beyond the Company's control. These forward-looking statements are made as of the date of this news release and, except as required by law, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.
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 RELEASE.
QIS Capital Corp.
Most Popular Stories
- Obama, Ukraine Discuss Russian Incursion in Crimea
- Chinese May Have Spotted Malaysia Airlines Debris
- Social Media Causee Sleep Deprivation in Students
- First-time Jobless Claims Drop Unexpectedly
- Banks Buying Little From Minority Firms: Study
- General Electric Plans IPO of Credit Card Unit
- SXSW Crash Kills 2, Injures 23
- U.S. Business Inventories Up, Retail Sales Down
- 'Candy Crush' Maker Files IPO
- First-time U.S. Jobless Claims Hit 3-month Low