TSX-V: BBI Optionality to Thrive Presented by: Garth Braun, Chairman, CEO & President The Oil & Gas Conference 20
Who is Blackbird Energy Blackbird Energy Inc. is an emerging oil and gas exploration company focused on the liquids-rich Montney fairway at Elmworth, near Grande Prairie, Alberta: 78 sections (49,920 acres) of 100% working interest…
The Challenges that face a Junior E&P How to Overcome the Hurdles 4
The Challenges Junior E&Ps face many hurdles on the road to success, such as: Acquiring land at a cost effective basis in a highly economic play De-risking the play Accessing capital / maintaining balance sheet strength Accessing…
Challenge 1: Acquire Economic Play 6
The Montney The Permian of the North Condensate and Liquids-Rich Liquids-Rich Sweet Spot Natural Gas High liquids / Gas ratio confirmed in initial Blackbird well tests (greater than 125 Bbls/Mmcf) Over-Pressured Reservoir…
Low Cost Land Assembly Early Mover advantage Created mapping that focused us on liquids-rich sweet spots Assembled 78 sections for Blackbird Land Assembly 6.9 million or 88,500 per section Over 900 potential drilling locations…
Challenge 2: Access Capital and Maintain Balance Sheet Strength 9
Balance Sheet Strength In 2014 Blackbird added 53.5 million to its balance sheet: Disposition of non-core asset for 8.9mm (3.5 sections of Montney) Equity raise in October 2014 for gross proceeds of 37.4mm Equity raise in December…
Challenge 3: De-Risk Play and Create Momentum 11
De-Risked Elmworth Drilling activity moving towards Blackbirds land Other peoples money is de-risking the play Industry results: Encana 2-15 and Encana 13-22 demonstrating strong liquids yields and production in near proximity…
Multi-Zone Elmworth Montney BBI 5-26 Hz A B BBI 6-26 Hz C 10-4-70-8W6 8-25-70-7W6 10-27-69-5W6 Doig Upper Montney Encana, NuVista Kelt Middle Montney NuVista, CIOC, Shell, Inception, Chinook Lower Montney NuVista,…
Mapping Liquids-Rich Sweet Spots Upper Montney Middle Montney BBI 5-26 Condensate to gas ratios Condensate to Gas ratios in the increase from less than 10 Middle Montney range…
Over-Pressured Window Substantially all of Blackbirds lands are situated in the over- pressured Montney corridor Over-pressured Montney ranges from 10 kpa/m to 18 kpa/m (0.471 to 0.868 psi/ft) Similar pressure regime to Eagle…
Liquids-Rich Confirmation In early 2015 Blackbird tested its first two operated Montney wells, confirming liquids-rich over-pressured nature 5-26 Upper Montney Test During test the 5-26 well was flowing back 0.9 Mmcf/d, 1,079 Bbls/d…
Challenge 4: Infrastructure 17
Elmworth Access Year-round access Close to pipelines and facilities which lowers cost to produce and transport CEOs family has been a member of the community for over a century We operate as a trusted partner in the community…
Access to Infrastructure Key for any E&P is access to pipelines & processing Juniors have to solve this without significant dilution / destruction of balance sheet Near-term solution for takeaway: Solution to handle our sour gas…
Infrastructure Solution Additional infrastructure being proposed in near proximity Note: Other than with respect to Blackbird, all data from public sources and not independently verified 20
Challenge 5: D&C Optimization 21
Drilling Optimization First wells in exploration program spud to rig release of 49 days (Middle Montney) and 39 days (Upper Montney) Key focus on reduction of drilling days Goal: Drill next well in mid 20 days Modification of…
Completion Optimization Downhole system movement to sliding sleeve from plug and perf Movement to single entry port vs. clustered intervals Higher rates and tonnage (greater liquids rates, shallower liquid declines, higher EUR)…
Challenge 6: Value Build Optionality 24
Optionality for Growth One strategy does not fit every market Current downturn has forced companies to revisit plans Decreased spending in periods of uncertainty Allows for M&A opportunities to present themselves Cut capex for…
What Does This All Mean 26
Why You Should Buy and Hold Strong land position in one of the most economic plays in Canada - right revenue / boe cocktail (high CGR) Management team that is aligned with shareholders and that has shown an ability to solve the…
Management Garth Braun Chairman, CEO and President: Garth is a businessman and entrepreneur with over 30 years of diversified experience in oil and gas, finance and real estate Garth was formerly the principal of a private real estate…
Corporate Profile BBI (TSXV) Shares Basic 355 mm Fully Diluted 394 mm Insider Holdings (Board and Management) (Basic)1 25% Positive Working capital 23.5 mm Market Capitalization (based on 0.14 per BBI 50 mm share) Enterprise…
Head Office 400, 444 5th Avenue SW Calgary, Alberta T2P 2T8 Contacts Garth Braun, Chairman, CEO & President Joshua Mann, VP Business Development (403) 500 5550 gbraunblackbirdenergyinc.com (403) 390 2144 joshblackbirdenergyinc.com…
Appendix A: Encana Montney Locations Latest locations Licenced July 2015 15 total licensed locations ECA 2-15 Hz; 2.2 mmcf/d + 705 Bopd of 49 API oil (320 bbls/mmcf), 0.498 psi/ft or 11.28 kpa/m Encana has already drilled 61…
Loading...
