March 15, 2011
VANCOUVER, BRITISH COLUMBIA - (Marketwire - March 15, 2011)
- Blackbird Energy Inc. ("Blackbird" or the "Company") (TSX VENTURE:BBI) is pleased to announce that it has entered into a Farmout Agreement (the "Agreement") with Donnybrook Energy Inc. ("Donnybrook") to drill a Montney formation horizontal test well in the Bigstone area of Alberta, Canada.
Under the terms of the Agreement, Blackbird may pay an aggregate of approximately $1,053,000, or 37.5% of the costs to drill, complete, equip and tie-in a test well (the "Test Well
"), in order to earn a 37.5% working interest in the Test Well subject to a convertible 10% gross overriding royalty on 37.5% of production. Upon recovery of drilling, completion and tie-in capital, Blackbird's interest will convert to an undivided 25% in the test well. In addition to the capital commitments noted above, the Agreement also provides for the cash payment by Blackbird of an aggregate of approximately $142,000 for land acquisition costs incurred by Donnybrook in respect of the subject lands as well as pre-estimated surface lease construction costs.
Pursuant to the earning terms of the Agreement, upon drilling to an approximate vertical depth of 2,500 metres and horizontally to an estimated total minimum depth of 3,800 metres and completing the well, Blackbird will be deemed to have earned 25% of Donnybrook's interest in lands and licenses covering 7 sections of land in the Bigstone area, subject to a non convertible 2.0% gross overriding royalty on all of the lands. Blackbird will continue to have the obligation to pay 37.5% of the costs to equip and tie-in the test well.
Donnybrook is a Canadian oil and natural gas exploration and production company, focused on horizontal multi-stage frac development in the liquid-rich Montney and Bluesky formations in the Deep Basin area of west central Alberta.
Garth Braun, Blackbird CEO, stated: "We are every pleased to announce our entry into what we feel will be a very promising play, with an established partner and operator, Donnybrook. The Montney shale play has the potential to be a very prolific play and we are excited about its potential, particularly given the newer drilling technology that will be applied. In addition to this entry into another North American play, we have also been pursuing opportunities in emerging markets in our ongoing efforts to enhance shareholder value."
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 of BLACKBIRD ENERGY INC.
Garth Braun, Chief Executive Officer and DirectorDisclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Farmout Agreement and Donnybrook's ability to drill the Test Well, and any results from the Test Well 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.
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.For more information, please contact
Blackbird Energy Inc.
604.662.4955 email@example.com www.blackbirdenergyinc.com
Back to the News page