CALGARY, ALBERTA–(Marketwired – Oct. 20, 2014) – Blackbird Energy Inc. (TSX VENTURE:BBI) (“Blackbird” or the “Company“) is pleased to announce that it has spud its first Middle Montney well at Elmworth. The well was spud from surface location 14-14-70-07W6 and will be drilled to a vertical depth of approximately 2,330 meters and a lateral length of approximately 2,000 meters to location 6-26-70-07W6. Drilling operations are expected to take approximately 30 days to complete.
Post completion of its first well, Blackbird will immediately commence the drilling of its second well at Elmworth targeting the Upper Montney.
Blackbird is also pleased to announce that it has closed the non-brokered tranche (the “Non-Brokered Tranche“) of the private placement first announced on September 22, 2014 (the “Private Placement“).
An aggregate of 24,138,241 special warrants (each, a “Special Warrant“) for gross proceeds of $7,000,089 were issued pursuant to the Non-Brokered Tranche. Each Special Warrant entitles the holder thereof to receive, for no additional consideration upon its exercise or deemed exercise, one Common Share. The Special Warrants were issued pursuant to a special warrant indenture dated October 16, 2014 between Blackbird and Computershare Trust Company of Canada as special warrant agent.
The Company currently expects to close the brokered tranche of the Private Placement (the “Brokered Tranche“) on or about October 21, 2014.
In connection with the Private Placement, the Corporation has agreed to prepare and file a prospectus (the “Qualification Prospectus“) and all other necessary documents in order to qualify the Common Shares issuable upon conversion of the Special Warrants to subscribers resident in Canada, or otherwise subject to Canadian securities laws. The Corporation has agreed to use commercially reasonable best efforts to obtain a receipt for the Qualification Prospectus within 60 days of the closing date of the Brokered Tranche.
In connection with the Non-Brokered Tranche, the Company paid a cash finder’s fee to various arm’s length finders in the aggregate amount of $93,964.
In accordance with applicable securities laws, the Special Warrants are subject to a four month and one day hold period, expiring on February 18, 2015 unless a receipt for the Qualification Prospectus is obtained prior to such date.
The Non-Brokered Tranche remains subject to receipt of TSX Venture Exchange final acceptance.
About Blackbird
Blackbird Energy Inc. is an emerging oil and gas exploration company focused on the liquids-rich Montney fairway.
[expand title=”Advisories & Contact”]On behalf of the board of
BLACKBIRD ENERGY INC.
Garth Braun, Chief Executive Officer and Director
Disclaimer for 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. Such statement include, but are not limited to, the anticipated timing for closing of the Brokered Tranche, receipt of TSX Venture Exchange final acceptance for the Non-Brokered Tranche, the timing and completion of the Middle Montney well located at 14-14-70-07W6 or the commencement of drilling operations for the following well at Elmworth. 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 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.
The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there by any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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.
Garth Braun
President and CEO
(587) 538-0383
gbraun@blackbirdenergyinc.com
Blackbird Energy Inc.
Joshua Mann
Vice President, Business Development
(403) 390-2144
josh@blackbirdenergyinc.com
Brisco Capital Partners Corp.
Scott Koyich
(403) 619-2200
skoyich@briscocapital.com
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