CALGARY, ALBERTA–(Marketwired – Sept. 22, 2016) – Blackbird Energy Inc. (TSX VENTURE:BBI) (“Blackbird” or the “Company“) is pleased to announce that it has received final approval from the TSX Venture Exchange for its proposed acquisition of an indirect 10% minority interest in Stage Completions Inc. (“Stage“) for a cash purchase price of $3.0 million (the “Transaction“) pursuant to the terms of a subscription agreement entered into between Blackbird and SC Holding Corporation (“SCHC“), the majority shareholder of Stage (the “Subscription Agreement“). Stage is a Canadian technology and services company that specializes in pin-point multistage completions.
The Transaction is subject to certain financial and operational conditions including the receipt of an independent valuation report regarding Stage and the successful deployment of Stage’s Bowhead II system (the “System“) in two third party wells (the “Condition Wells“). The independent valuation report, performed by a large international accounting firm, was received by Blackbird in September, 2016, and as such, this condition has been satisfied.
The System was successfully installed and tested in the first of the Condition Wells during September, 2016. This successful installation and test followed the successful installation and test of the System in Blackbird’s Cardium water disposal well during July, 2016.
At this time, the Transaction remains subject to the successful installation and test of the System in the second of the two Condition Wells, which is expected to occur in October or November, 2016. As a result, Blackbird currently expects closing of the Transaction to occur by the end of November, 2016. To accommodate the new closing timeline, Blackbird and SCHC have entered into an amending agreement dated September 22, 2016 (the “Amending Agreement“) extending the closing date for the Transaction to no later than December 15, 2016.
For further information regarding the Transaction and the Conditions please see the Company’s material change report dated July 29, 2016 and the Subscription Agreement, including the Amending Agreement, which is available on Blackbird’s SEDAR profile at www.sedar.com.
Blackbird Energy Inc. is a highly innovative oil and gas exploration and development company focused on the condensate and liquids-rich Montney fairway at Elmworth, near Grande Prairie, Alberta.
For more information please view our Corporate Presentation at www.blackbirdenergyinc.com.