November 18, 2011
November 18, 2011 -- Vancouver, British Columbia (TSX-V: BBI) Blackbird Energy Inc. ("Blackbird" or the "Company"), is pleased to announce that the operator, Donnybrook Energy Inc. (Donnybrook) of Calgary, has issued a Notice of Operations to drill a second Montney horizontal well at Bigstone.
The well, DEI et al Bigstone Hz 15-32-60-22W5, will be drilled from the surface location 3-29-60-22W5 to a total measured depth of 5,150 meters and include a 2,400 m lateral (horizontal) leg, which is approximately 1200 m longer than the lateral in our first successfully completed and tested Bigstone well, DEI et al Bigstone HZ 14-29-60-22W5. The Donnybrook operated DEI Bigstone Hz 15-32-60-22 W5M well (25% working interest) will be drilled from the same drilling pad as the Company's Bigstone Hz 14-29 discovery well (37.5% BPO/25% APO working interest), which tested in the last 24 hours of a 4 day production test at a rate of approximately 4.3 million cubic feet per day (mmcf/day) of natural gas and 295 barrels per day (bbls/day) of condensate from a 1,254 metre horizontal section; 1,011 barrels of oil equivalent per day (boe/day). The DEI Bigstone Hz 15-32 well has a planned 2,500 metre +/- horizontal section. Donnybrook has contracted a drilling rig and anticipates drilling to commence by the first week of December, drilled to total depth and be ready for facture stimulation approximately 4 weeks later.
A third Donnybrook operated Bigstone Montney horizontal well (25% working interest net to Blackbird) is planned to be spud in Q1 of 2012. There are several potential locations for the third well and discussions are ongoing with partners to determine which location will be selected. The Company has 7 gross sections (1.75 net sections) at Bigstone, which would support an equivalent of 14-28 gross (3.5-7 net) horizontal wells depending upon the lateral length of each horizontal leg.
As noted in the Blackbird press release dated October 19, 2011, Blackbird's first well in the field, DEI et al Bigstone Hz 14-29-60-22w5 confirmed the Montney formation at Bigstone is at least comparable or possibly better in reservoir quality to the Montney encountered by wells drilled at Fir 4 miles to the south. Accordingly, longer 2000-2600m lateral sections at Bigstone may yield a similar increase in test rates, anticipated to be 3 to 4 times higher than those achieved by the DEI et al 14-29 well.
Blackbird earned a 25% interest in a total of 7 sections of Donnybrook's lands at Bigstone and in any future operations within an Area of Mutual Interest (AMI) by completing the terms of the Bigstone Area Farmout Agreement of March 3, 2011.
Garth Braun, Blackbird CEO, stated "the Bigstone area's recent successes in drilling, and the continued development of the infrastructure continues to exceed our expectations. Recent announcements regarding infrastructure expansion to accommodate increasing production from the Montney, drilling announcements and current drilling activity, as well as the recent land sales to the south of our lands further emphasize the significant potential of the Montney resource in the Bigstone/Fir Montney area. Blackbird's 25% W.I. in 1792 ha of contiguous lands at Bigstone represents a potential drilling inventory of 13-27 development locations depending on the length of the horizontal leg of each well. We are looking forward to continued success as we develop this exciting project with our partners".About Blackbird
Blackbird's Bigstone Project is comprised of lands and licences covering a total of 4,480 acres, in Township 60, ranges 22 and 23W5 at Bigstone, Alberta. By completing the terms of the farm in agreement, Blackbird has earned 25 per cent of Donnybrook Energy Inc.'s interest in the Bigstone lands and in any future operations within an area of mutual interest.
Blackbird's wholly-owned subsidiary Blackbird Energy 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 ofBLACKBIRD ENERGY INC.
Per: "Garth Braun"
Chief Executive Officer and Director
For further information contact:
Doren Quinton, President
QIS Capital Corp.
Ph: (250) 377-1182
Email: firstname.lastname@example.orgDisclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the drilling or capacity of the second Bigstone well and the development potential of the Bigstone/Fir Montney area generally. 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.
Oil Equivalency Conversion (BOE)
Where amounts are expressed on a barrel of oil equivalent ("BOE") basis, natural gas volumes have been converted to BOE at a ratio of 6,000 cubic feet of natural gas to one barrel of oil equivalent (6 Mcf = 1 BOE). The conversion ratio is based upon an energy equivalent conversion method, primarily applicable at the burner tip and does not represent value equivalence at the wellhead. BOE values may be misleading, particularly if used in isolation.
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