April 23, 2013
April 23, 2013 - Vancouver, British Columbia (TSX-V: BBI) Blackbird Energy Inc. ("Blackbird
" or the "Company
") is pleased to announce that its wholly-owned subsidiary, Ruger Energy Inc. ("Ruger"), has entered into an agreement to purchase certain oil and gas assets from Blackspur Oil Corp. for total cash consideration of $100,000.
The assets (the "East Flaxcombe
") are located near Ruger's current oil production in Flaxcombe, Saskatchewan and will allow for optimization and operating cost savings. Current production at the East Flaxcombe Project is 10 boepd (70% oil) and the deal metrics are $10,000/producing day barrel.
The East Flaxcombe is accretive to Blackbird's Flaxcombe Project. East Flaxcombe is comprised of a total of 6,080 acres in West Central Saskatchewan. Blackbird will now have a 100% working interest in the Sparky oil pool with two additional producing wells.
Garth Braun, CEO of Blackbird stated, "This accretive acquisition expands Blackbird's land position in this core area of focus and we believe that the Flaxcombe Project will deliver increased shareholder value. Blackbird's team continues to be focused on diversifying its interest with the addition of these lower risk multi pay oil projects in West Central Saskatchewan."About Blackbird
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.
The Flaxcombe & West Central Saskatchewan Project is comprised of a total of 21,041 acres (net 18,393 acres) in West Central Saskatchewan. Blackbird holds a 100% working interest in a Sparky oil property with 3 producing oil 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 Energy Inc. ("Ruger
"), Blackbird's subsidiary, holds a 100% working interest. The Alsask Project has 3 producing Basal Mannville oil wells and 1 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 per cent 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 West Central Saskatchewan and Alberta.
On behalf of the board ofBLACKBIRD ENERGY INC.
Per: "Garth Braun"
Chief Executive Officer and DirectorFor further information contact:
QIS Capital Corp.
Ph: (250) 377-1182
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.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the effect of the Acquisition and future production volumes of the Flaxcombe Project. 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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