Blackbird Investments to Start Permitting at Mathers

Blackbird Investments to Start Permitting at Mathers

November 10, 2009

Mr. William Macdonald reports


Further to its previous announcements with regard to its proposed qualifying transaction, Blackbird Investments Inc. has closed the qualifying transaction and concurrent financing, and has received final approval from the TSX Venture Exchange. The closing date for the transaction and the first tranche of the concurrent financing was Oct. 23, 2009. The second tranche of the financing closed on Nov. 5, 2009.

As announced, Blackbird had entered into an agreement with Maxwell Exploration Inc. for the acquisition of a 75-per-cent interest in certain oil and gas leases located in Gray county, Texas.

William Macdonald, president of the corporation, stated: "I am very pleased at what the Blackbird team has been able to accomplish in such a short time frame, particularly given the difficult market conditions when we locked up the transaction. At the time when we entered into the initial agreement for the acquisition, gas was at approximately $2.50 (U.S.), oil was at $58 (U.S.) and we had an 87-cent Canadian dollar. All of these have moved substantially in our favour, making for an even more compelling story."

Blackbird is now proceeding with the bond and permitting process in order to commence operations on the initial two Mathers well recompletions as soon as possible.

The financing provided total gross proceeds of $2,978,116. Of this amount, gross proceeds of $2.5-million were received from the brokered portion and gross proceeds of $478,116 were received from the non-brokered portion. Net proceeds from brokered portion, after commissions, payment of the corporate finance fee and agent's expenses were $2,273,000. Net proceeds from the non-brokered portion after payment of finders' fees were $464,116.

The financing consisted of 11,912,464 units at a price of 25 cents per unit. Each unit consists of one common share and one-half of one transferable share purchase warrant. Each whole warrant entitles the holder to acquire one common share at a price of 40 cents for a period of 36 months from the closing. In addition, the corporation has issued agent warrants equal to 7 per cent of the securities sold under the financing; the warrants are exercisable at 25 cents for a period of 24 months from closing. The corporation has issued 125,000 agent shares and 490,743 finder's fee shares to the party that identified the transaction and assisted in its negotiation and evaluation. The shares and warrants issued in connection with the private placement and finder's fee will be subject to a four-month hold period.

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