|April 5, 2012 - Vancouver, British Columbia (TSX-V: BBI) Blackbird Energy Inc. ("Blackbird" or the "Company"), is pleased to announce that it has closed the second and final tranche (the "Second Tranche") of its non-brokered private placement first commenced in February, 2012 (the "Non-Brokered Private Placement") for gross proceeds of an additional $500,000. The first tranche of the Private Placement previously closed together, with this second tranche of the non- brokered private placement, has now provided aggregate gross proceeds of $2,579,960.|
A total of 3,125,000 units (each, a "Unit"), at a price of $0.16 per Unit, were issued pursuant to the Non-Brokered Private Placement. Each Unit consists of one common share in the capital of the Company (a "Common Share") and one Common Share purchase warrant (a "Warrant") exercisable at a price of $0.24 until April 5, 2014. Additionally, an aggregate of 250,000 finder's warrants (a "Finder's Warrant") were issued and finder's fees paid to a finder in connection with the Second Tranche. Each Finder's Warrant is exercisable at a price of $0.24 until April 5, 2014.
Garth Braun, Blackbird CEO, stated: "We are very pleased to have completed this second tranche. The funds we now have in place will see us through completion of the third well, tie-in of production from the first two wells and drilling of the fourth well. Further, given that production should be imminent, we are hopeful that we will not be undertaking any additional financing activity for the foreseeable future."
All of the securities issued in the Second Tranche, including all Finder's Warrants, are subject to a four month hold period expiring on August 6, 2012.
The net proceeds from the Second Tranche will be applied to the Company's project with Donnybrook Energy Inc. for the lease construction and drilling of the third and fourth Montney wells at Bigstone.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Blackbird's 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 per cent of Donnybrook's interest in the Bigstone lands and in any future operations within an area of mutual interest.
Blackbird's wholly-owned subsidiary Blackbird Energy Holdings LLC ("Blackbird Energy") holds a 75% interest in 3,857 acres of leasehold land located in Gray County, Texas known locally as the "Mathers-Gordon Prospect". The Mathers-Gordon Prospect is a multi pay oil and gas prospect. Blackbird Energy is the operator of the prospect. In addition, Blackbird plans to actively look for further oil and gas properties for acquisition or potential joint ventures.
On behalf of the board of
BLACKBIRD ENERGY INC.
Per: "Garth Braun"
Chief Executive Officer and Director
For further information contact:
Doren Quinton, President
QIS Capital Corp.
Ph: (250) 377-1182
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding Donnybrook's ability to drill and complete the next wells on the project, the Company's ability to fund its obligations on the third and fourth well and any results from such wells specifically or the Montney Shale play in general. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. 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. 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.
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