CALGARY, ALBERTA–(Marketwired – March 8, 2016) – Blackbird Energy Inc. (“Blackbird” or the “Company“) (TSX VENTURE:BBI) is pleased to announce a 522% increase in proved plus probable reserves volumes. Blackbird’s reserves as at January 31, 2016 were evaluated by the Company’s independent reserves evaluators, GLJ Petroleum Consultants (“GLJ“).
Highlights of Blackbird’s January 31, 2016 reserves evaluation compared to Blackbird’s July 31, 2015 reserves evaluation are as follows:
- Total proved plus probable reserves increased 522% to 6,484 MBOE (37% natural gas liquids (“NGLs“)).
- Total proved plus probable reserves net present value increased 120% to $38.5 million before tax using forecast prices and costs, discounted at 10%. This significant increase in NPV10% is despite a material reduction in GLJ’s January 1, 2016 price forecast compared to their July 1, 2015 forecast.
- Total proved reserves increased 313% to 3,021 MBOE (38% NGLs).
All reserve volumes are reported on a company gross reserves basis. The GLJ reserves evaluation used GLJ’s January 1, 2016 price forecast.
The following table summarizes the Company’s gross reserves, by category, and the net present value of the future net revenue before income taxes, discounted at 10%. The reserves and net present value data set forth below is based upon the January 31, 2016 GLJ reserves evaluation.
|NPV 10%||NPV 10%|
|Total Proved Plus Probable||24,589||2,386||6,484||38,533||5.94|
|(1)||Includes field condensate.|
2-20-070-7W6 (“2-20”) Well Cost Update
Blackbird incurred drilling and completions costs of approximately $9.9 million on the 2-20 Middle Montney well, excluding testing and other post-completion costs. Based on the 2-20 well’s proved plus probable reserves volumes of 1,089,300 boe, as assigned in the GLJ January 31, 2016 evaluation, this represents finding and development costs of $9.09/boe.
Under a development scenario, Blackbird estimates that drilling, completions, equipping and tie-in costs will total approximately $7.25 million per location, which is analogous with the costs achieved by other Elmworth Montney producers. With drilling, completions, equipping and tie-in costs of $7.25 million, finding and development costs decrease to $6.65/boe on a proved plus probable reserves basis.
Annual and Special Meeting of Shareholders of the Corporation
Blackbird’s Annual and Special Meeting of Shareholders of the Corporation was held on March 7, 2016 in Calgary, Alberta. Blackbird’s shareholders elected Mr. Garth Braun, Mr. William L. Macdonald, Mr. Ron Schmitz, Mr. Kevin Andrus, Mr. Sean Campbell and Mr. Burton Ahrens as directors of the Company.
Blackbird’s shareholders also approved the renewal of the stock option plan of the Company and the appointment of Davidson & Company LLP, Chartered Accountants, as auditors of the Company to hold office until the next annual meeting of the shareholders.
Blackbird Energy Inc. is a highly innovative oil and gas exploration and development company focused on the liquids-rich Montney fairway at Elmworth, near Grande Prairie, Alberta.
For more information please view our Corporate Presentation at www.blackbirdenergyinc.com.