CALGARY, ALBERTA–(Marketwired – Oct. 25, 2016) – (TSX VENTURE:BBI) Blackbird Energy Inc. (“Blackbird” or the “Company“) is pleased to announce a non-brokered private placement of 16,500,000 common shares in the capital of the Company to be issued on a “flow-through” basis (“Flow-Through Common Shares“) pursuant to the Income Tax Act (Canada) (“ITA“) in respect of Canadian Exploration Expenses (“CEE“) at a price of $0.485 per share for gross proceeds of $8,002,500 (the “CEE Private Placement“).
Blackbird is also pleased to announce a non-brokered private placement of 10,650,000 Flow-Through Common Shares pursuant to the ITA in respect of Canadian Development Expenses (“CDE“) at a price of $0.47 per share for gross proceeds of $5,005,500 (the “CDE Private Placement“).
Strategic Accelerated Business Plan
In recent months it has become clear to Blackbird that significant momentum is building in the greater Elmworth/Pipestone corridor, and that there is the potential for great value achievement if Blackbird’s business plan is accelerated.
The proceeds from the CEE Private Placement and CDE Private Placement (the “Private Placements“) will allow Blackbird to capitalize on this momentum and accelerate its business plan through the initiation of a revised drilling program. The revised drilling program will consist of the previously announced 02/2-20 Upper Montney well, which was spud on October 8, 2016, at least one CEE eligible well, and one CDE eligible well (the “Program“). It is anticipated that the Program will be completed during the first half of 2017.
The Program is anticipated to accelerate the delineation of Blackbird’s contiguous 87.25 net section Elmworth/Pipestone asset, build additional reserves and behind-pipe production, and contribute to Blackbird’s production and cash-flow upon the commissioning of the Company’s infrastructure facility and pipeline gathering system in late December, 2016.
In addition to providing for the Program, the Private Placements will allow for the allocation of Blackbird’s current working capital towards other growth initiatives if deemed by management to be in the best interest of Blackbird’s shareholders.
The closing of the Private Placements is subject to the Company receiving all necessary regulatory approvals, including approval from the TSX Venture Exchange. The Company may pay finder’s fees consisting of cash and/or common shares pursuant to the closing of the Private Placements.
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