October 20, 2011
October 20, 2011 -- Vancouver, British Columbia (TSX-V: BBI) Blackbird Energy Inc. ("Blackbird" or the "Company"), is pleased to announce that it has been informed by the operator, Donnybrook Energy Inc. (TSX-V: DEI) ("Donnybrook") of Calgary, that the Bigstone, Montney Formation horizontal well, Donnybrook HZ Bigstone 14-29-60-22W5 (the "Bigstone Well"), has been successfully completed and flow tested. On October 12, 2011, a 240 ton, 12 stage continuous fracture treatment along the 1,254 meter lateral leg of the Bigstone Well (horizontal portion) was carried out over a 6 hour period. Immediately after, the Bigstone Well was flowed for cleanup and subsequently flow tested for approximately 4 days and is currently shut-in for build up. After clean-up, the Bigstone Well produced gas and condensate over the last 24 hours of the test at approximately 4.3 million cubic feet per day (mmcf/day) and 295 barrels per day (bbls/day) of condensate (1,011 barrels of oil equivalent per day, boe/day).
The Bigstone Well has tested at comparable or better rates to a well located approximately 5 miles to the south which was drilled and completed in a similar manner (1,200 meter lateral with 12 stage frac) and tested rates of 3.5 mmcf/day and 225 bbls/day of condensates; 808 boe/d. The operator of that well has offset the initial test with 2 longer horizontal wells with 2,000 and 2,538 meter laterals at locations about 4 miles south of ( 1 mile closer to) the Bigstone Well. The 2,000 meter lateral section tested at rates of 13.1 mmcf/day and 655 bbls/day of condensate (2,840 boe/day). The 2,538 meter lateral section tested at 15mmcf/day and 600-900 bbls of condensates. (3,100-3,400 boe/d).
The Bigstone Well confirms the Montney formation at Bigstone is at least comparable or possibly better in reservoir quality to the Montney that has been drilled at Fir 4 miles to the south. Accordingly, longer 2000-2600 meter lateral sections at Bigstone should produce a similar increase in results with test rates anticipated to be 3 to 4 times higher than the Bigstone Well has achieved.
Garth Braun, Blackbird CEO, stated: "We are very pleased with these results which confirm our expectations of the Bigstone Well. The potential of the Montney formation in the Bigstone/Fir area continues to be highlighted by industry activity in the area and Blackbird looks forward to its future participation in this exciting oil and gas play. Currently, Blackbird's 25% working interest in 4,480 acres 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."Future Development Plans
Based on the reported production performance of longer lateral wells to the south at Fir and the quality of the Montney reservoir section encountered at Bigstone, Donnybrook has informed Blackbird that it is planning to drill a longer 2000-2200m lateral as the next well in the project.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 will earn 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 DirectorFor further information contact:
Doren Quinton, President
QIS Capital Corp.
Ph: (250) 377-1182
Ph: (604) 662-4955
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the capacity of the 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.
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
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