Blackbird Energy Provides Update On Montney Horizontal Well Drilling And Completion Progress

Blackbird Energy Provides Update On Montney Horizontal Well Drilling And Completion Progress

January 10, 2012

January 10, 2012 -- Vancouver, British Columbia (TSX-V: BBI) Blackbird Energy Inc. ("Blackbird" or the "Company"), is pleased to announce that further to its recent news releases, it has been informed by the operator, Donnybrook Energy Inc., that the DEI Bigstone Hz 15-32-60-22 W5M well (25% working interest to Blackbird) has been drilled to total depth ("TD") and the completion string has been installed in preparation for fracing operations, scheduled for January 15, 2012. The well was drilled directionally to a total measured depth of 5,512 meters from the 3-29-60-2W5 surface location and included an extended reach lateral through the Montney Formation measuring 2,744 meters at the 15-32-60-22W5 bottom-hole terminus. The completion string is configured to conduct a continuous, multi stage fracture stimulation consisting of up to 24 stages over the length of the horizontal lateral. The completion operations including the frac procedure, production test and preparing the well in readiness for tie-in to sales are estimated to be accomplished by early to mid February, 2012.

The 15-32 well horizontal section is over twice as long (close to 1,500 meters longer) than the first successfully tested Montney horizontal well, DEI Bigstone Hz 14-29-60-22W5. The 14-29, (37.5% BPO/25% APO working interest) which parallels part of and directly offsets the 15-32 well, flowed at a rate of approximately 4.3 million cubic feet per day of natural gas (mmcf/d) and 295 barrels per day (bbl/d) of condensate from a 1,254 meter lateral (1,011 barrels of oil equivalent per day (boe/d)) during the last 24 hours of a 4 day production test. The 15-32 well will be frac'd with the same, synthetic oil-based multi-stage system utilized in the completion of the 14-29 well.

The long lateral or "extended reach" horizontal wells, in suitable areas, have the potential of reducing well density by up to 50% over the shorter 1200 meter laterals, improving project economics and substantially reducing the surface environmental footprint. To date, 11 of the 15 Montney horizontal wells currently drilled in the Bigstone/Fir area are "extended reach" with laterals ranging in length from 2,200 to 2,800 meters, while the remaining four wells have laterals of 1,200 to 1,300 meters. Each of these shorter laterals were drilled by local operators, to assess the development potential of the Montney formation, liquids rich natural gas resource in this area by employing current, state of the art horizontal drilling and fracture stimulation techniques prior to moving to the extended reach longer laterals for development purposes.

Planning for drilling a third well and construction of gas gathering and production facilities are currently underway with a targeted start-up and on stream to sales commencing in Q2 2012. Blackbird holds a 25% working interest in 7 gross sections (1.75 net) sections at Bigstone.

The Company and its partners continue to work toward having 3 wells drilled completed and tied in by the end of the winter drilling season. Bill Macdonald, President of Blackbird stated, "We are very excited about the progress of the Bigstone wells and the prospect that they will be on stream in the near future, and the added value that this will bring to the Bigstone prospect."

In addition, Blackbird announces that Cheng-Guan Loo has resigned as a director of the Company. The Company would like to thank Mr. Loo for his contribution to the board of directors.

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% 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 of
BLACKBIRD ENERGY INC.

Per: "Garth Braun"
Garth Braun
Chief Executive Officer and Director

For further information contact:

Doren Quinton, President
QIS Capital Corp.
Ph: (250) 377-1182
Email: info@qiscapital.com
www.qiscapital.com


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 Donnybrook's ability to complete the 15-32-60-22 W5M well on the project, the timing of such completion, the timing and completion of any subsequent tie ins or production, and any results from the wells 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.

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