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CALGARY, ALBERTA--(Marketwired - Mar 8, 2016) - Blackbird Energy Inc. ("Blackbird" or the "Company") (TSX VENTURE:BBI) is pleased to announce a 522% increase in proved plus probable reserves volumes. Blackbird's reserves as at January 31, 2016 were evaluated by the Company's independent reserves evaluators, GLJ Petroleum Consultants ("GLJ").
Highlights of Blackbird's January 31, 2016 reserves evaluation compared to Blackbird's July 31, 2015 reserves evaluation are as follows:
All reserve volumes are reported on a company gross reserves basis. The GLJ reserves evaluation used GLJ's January 1, 2016 price forecast.
The following table summarizes the Company's gross reserves, by category, and the net present value of the future net revenue before income taxes, discounted at 10%. The reserves and net present value data set forth below is based upon the January 31, 2016 GLJ reserves evaluation.
|NPV 10%||NPV 10%|
|Total Proved Plus Probable||24,589||2,386||6,484||38,533||5.94|
|(1)||Includes field condensate.|
2-20-070-7W6 ("2-20") Well Cost Update
Blackbird incurred drilling and completions costs of approximately $9.9 million on the 2-20 Middle Montney well, excluding testing and other post-completion costs. Based on the 2-20 well's proved plus probable reserves volumes of 1,089,300 boe, as assigned in the GLJ January 31, 2016 evaluation, this represents finding and development costs of $9.09/boe.
Under a development scenario, Blackbird estimates that drilling, completions, equipping and tie-in costs will total approximately $7.25 million per location, which is analogous with the costs achieved by other Elmworth Montney producers. With drilling, completions, equipping and tie-in costs of $7.25 million, finding and development costs decrease to $6.65/boe on a proved plus probable reserves basis.
Annual and Special Meeting of Shareholders of the Corporation
Blackbird's Annual and Special Meeting of Shareholders of the Corporation was held on March 7, 2016 in Calgary, Alberta. Blackbird's shareholders elected Mr. Garth Braun, Mr. William L. Macdonald, Mr. Ron Schmitz, Mr. Kevin Andrus, Mr. Sean Campbell and Mr. Burton Ahrens as directors of the Company.
Blackbird's shareholders also approved the renewal of the stock option plan of the Company and the appointment of Davidson & Company LLP, Chartered Accountants, as auditors of the Company to hold office until the next annual meeting of the shareholders.
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
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. Statements relating to "reserves" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future. Statements relating to "costs" and "finding and development costs" are also deemed to be forward-looking statements, as they involve estimates and assumptions related to the cost of drilling, completions, equipping, and tie-in of future locations/wells, in conjunction with forward-looking statements regarding the Company's reserves.
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 and Gas Advisory
The reserves information contained in this press release has been prepared in accordance with Canadian Oil and Gas Evaluation Handbook and represents only a portion of the disclosure required under NI 51-101. Complete NI 51-101 reserves disclosure will be included in the Company's filings for the year ended July 31, 2016 required in accordance with NI 51-101, which are expected to be filed in late November 2016. Listed below are cautionary statements applicable to our reserves information:
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.
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 PRESS RELEASE.
Blackbird Energy Inc.
Chairman, CEO and President
Blackbird Energy Inc.
Vice President, Business Development