Exploration & Production | Drilling & Completions | Well Lateral Length | Drilling Program

Blackbird Energy to Complete Montney Wells in 2015

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   |    Tuesday,December 09,2014

Blackbird Energy Inc. has announced that its first 100% working interest horizontal Middle Montney well at Elmworth, located at 6-26-70-07W6, has been successfully drilled and cased with a cemented liner from surface location 14-14-70-07W6 to a total measured depth of 4,730 metres, including a 2,000 metre horizontal leg.

Blackbird has reported that it has licensed and spudded its second 100% working interest horizontal well at Elmworth, located at 5-26-70-07W6, targeting the Upper Montney. The 5-26 well was spudded from the same drilling pad located at 14-14-70-07W6 and will be drilled to a vertical depth of approximately 2,340 metres, a lateral length of approximately 2,000 metres and a total measured depth of approximately 4,740 metres.

As previously announced, completion operations for both wells are scheduled to occur in January 2015, subsequent to which Blackbird intends to flow-test both wells. Flow-testing results for both wells are expected by late February 2015.

The 6-26 and 5-26 wells are located within Blackbird’s 46 contiguous section Montney land block at Elmworth, near Grande Prairie, Alberta.

Closing of Final Tranche of Flow-Through Private Placement

Blackbird is pleased to announce that it has completed the second and final tranche of the previously announced non-brokered flow-through share private placement (the “Private Placement“), issuing 3,300,000 shares at a price of $0.45 per share for gross proceeds of $1.49 million. The aggregate amount of shares issued pursuant to both tranches of the Private Placement was 16,150,555 at a price of $0.45 per flow-through share for aggregate gross proceeds of $7.27 million. Post-closing of the Private Placement and the drilling of the 6-26 well, Blackbird has approximately $42.5 million in positive working capital and no debt.

Garth Braun, Blackbird’s Chairman, President, and Chief Executive Officer stated: "With the completion of the Private Placement, Blackbird has further strengthened its balance sheet and is well positioned in this challenging commodity price environment to continue its growth and aggregation strategy in the Elmworth corridor."

The available proceeds from the Private Placement will be used by the Company to incur eligible Canadian Exploration Expense.

In connection with the final tranche of the Private Placement, the Company paid a cash finder’s fee to various arm’s length finders in the aggregate amount of $74,250. All of the shares issued pursuant to the final tranche of the Private Placement are subject to a four month hold period expiring April 9, 2015.