January 28, 2016
CALGARY, ALBERTA--(Marketwired - Jan. 28, 2016) - Blackbird Energy Inc. (TSX VENTURE:BBI) ("Blackbird" or the "Company") is very pleased to announce production test results from its 2-20-70-7W6 ("2-20") Middle Montney well at Elmworth. The production test result of 1,768 Boe/d ranks the 2-20 well in the top tier of well results in the Montney.
Results from the final 24 hour test are as follows:
(Bbls/d) (2) (3)
|Type Curve (4)||3.25||439||981||135|
|(1) The 2-20 well produced through a 19.05 millimeter choke at the beginning of the final 24 hour test period and a 21.30 millimeter choke at the end of the final 24 hour test period.|
|(2) The 2-20 well average rates over the final 24 hours of the test.|
|(3) The 2-20 well total liquid hydrocarbons are comprised of 316 Bbls of free condensate and 325 Bbls of natural gas liquids based on the composition from the 6-26 gas analysis.|
|(4) Blackbird's Elmworth Middle Montney type curve based on internal best estimates and publicly available data.|
Results Summary & Strategic Update
The test results for the 2-20 well exceeded Blackbird's gas rate and total Boe/d type curve by 109% and 80% respectively. The 2-20 well is a top-tier Elmworth Middle Montney well due to the combination of its natural gas test rates and its premier liquids to gas ratio. Blackbird is highly encouraged by the 2-20 well results and has now de-risked and delineated both the Upper and Middle Montney across 25 sections of its Elmworth Montney lands.
The 2-20 well was drilled into the Middle Montney formation to a total measured depth of 4,660 meters, including a 2,008 meter horizontal leg. Blackbird completed the well using sliding sleeve frac technology and an innovative energized CO2 foam frac with 70 individual stages. A total of 10,531 m3 (88,317 Bbls) of load fluid and 9,226 m3 of CO2 distributed an average of 31.75 tonnes of proppant per stage over the 70 stages.
Load Fluid Recovery and Pressure Data
The 2-20 well flowed on clean-up for a total of 751 hours and recovered approximately 43% of its load fluid, in addition to 3,027 Bbls (481.4 m3) of condensate and 2,150 e3m3 of CO2. During the final 24 hour test the casing pressure averaged 7,973 kpa. Blackbird fully expects that the 2-20 well is continuing to clean up and that productivity will increase as additional load fluid is recovered.
During the final 24 hour test, the flow rate of the 2-20 well was restricted in order to limit production to 275 103m3 of total gas per day (combined raw gas, CO2 and N2), in accordance with the Company's flare permit. Based on the flowing casing pressure recorded during this time, management believes the 2-20 well is capable of significantly higher rates, with capability estimated to be greater than 9 mmcf/d plus correlated liquids.
Blackbird's operational success was achieved through innovation on multiple fronts, including drilling the first Montney monobore well at Elmworth, utilizing a sliding sleeve completion system with the highest number of individual fracs in the area, and successfully implementing the largest CO2 completion in Canada.
Blackbird Energy Inc. is a highly innovative oil and gas exploration and development company focused on the liquids-rich Montney fairway at Elmworth, near Grande Prairie, Alberta.
For more information please view our Corporate Presentation at www.blackbirdenergyinc.com.
Advisories and Forward Looking Information
The Company advises that although the test results from the 2-20 well are highly encouraging, the test results are not necessarily indicative of long-term performance or of ultimate recovery.
This press release contains forward-looking statements or information (collectively referred to herein as "forward-looking statements"). 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 and are not guarantees of future performance of the Company. Such statements include, but are not limited to, the potential for increased 2-20 well performance if utilizing a larger choke, the potential for increased 2-20 well performance with further clean-up and increased fluid recovery, the potential for the 2-20 well to be a top-tier Elmworth Middle Montney well, and in general that the production test results of the 2-20 well may be indicative of any future productivity levels from the well. 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 and business conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with oil and gas exploration, development and production including drilling and completion risks, (3) the price of and demand for oil and gas and their effect on the economics of oil and gas exploration, (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. Should one or more of these risks or uncertainties materialize, or should any of the Company's assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. Readers are cautioned that the foregoing list of risks, uncertainties and other factors is not exhaustive. Unpredictable or unknown factors not discussed could also have material adverse effects on forward-looking statements. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are dependent on other factors, and the Company's course of action would depend on its assessment of the future considering all information then available. All forward-looking statements in this press release are expressly qualified in their entirety by these cautionary statements. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
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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