CALGARY, ALBERTA–(Marketwired – Nov. 23, 2016) –
Editor’s Note: There is one photo associated with this news release.
Blackbird Energy Inc. (TSX VENTURE:BBI) (“Blackbird” or the “Company“) is pleased to announce the closing of the previously announced acquisition of an indirect 10% minority interest in Stage Completions Inc. (“Stage“) for a cash purchase price of $3.0 million (the “Stage Acquisition“), the spud of its previously announced 3-28-70-7W6 (“3-28“) Elmworth Upper Montney well and the grant of incentive stock options.
Closing of Stage Acquisition
Blackbird has closed the Stage Acquisition pursuant to the terms of a subscription agreement entered into between Blackbird and Stage’s holding corporations, the majority shareholders of Stage (the “Subscription Agreement“).
The closing of the Stage Acquisition was subject to certain financial and operational conditions including the receipt of an independent valuation report of Stage and the successful deployment of the Bowhead II fracturing system (the “Stage System“) in two wells (the “Condition Wells“). The independent valuation report, prepared by a large international accounting firm, was received by Blackbird in September, 2016, and as such, that condition was satisfied.
The Stage System has been successfully installed and tested in three wells:
- Blackbird’s Cardium water disposal well during July, 2016;
- The first of the Condition Wells during September, 2016; and
- Blackbird’s 102/2-20-70-7W6 (“02/2-20“) well during November, 2016.
Please see the link below to view Blackbird’s previous news release dated November 18, 2016, which outlines the performance of the Stage System in Blackbird’s 02/2-20 well.
Due to the success of these three Stage System installations and tests, Blackbird waived the Subscription Agreement’s final outstanding condition of successful deployment of the Stage System in the second Condition Well.
Please see Figure 1 for a picture of Garth Braun, Chairman, Chief Executive Officer and President of Blackbird and Sean Campbell, President and Chief Executive Officer of Stage, closing the Stage Acquisition.
Spud of Previously Announced 3-28 Elmworth Montney Well
Blackbird’s previously announced 3-28 Upper Montney well (the “Well“) was spud on November 23, 2016. The Well is located in what an industry leader calls the “Volatile Oil” window, which they define as having more than 250 bbls of condensate per mmcf of natural gas. The Well was spud from surface location 11-15-70-7W6, will have a lateral length of approximately 2,150 meters, and will target location 3-28-70-7W6.
Subsequent to the 3-28 drilling operations, Blackbird will conduct a large scale, high-tonnage slickwater completion program utilizing the Stage System. The 3-28 completion operations are scheduled to begin in December, 2016.
Grant of Incentive Stock Options
The Company has granted an aggregate of 8,350,000 incentive stock options to certain of its directors and officers pursuant to the terms of the Company’s stock option plan. Such options are exercisable for five years at an exercise price of $0.58 and are subject to the acceptance of the TSX Venture Exchange.
The options will vest in three equal installments. The first 1/3 shall vest upon grant, the second 1/3 will vest on the first anniversary of the grant, and the final 1/3 will vest on the second anniversary of the grant.
Any common shares issuable upon exercise will be subject to a four-month hold period expiring on March 22, 2017. Following this grant of options, Blackbird has 34,210,711 shares reserved for issuance pursuant to options granted under the Company’s stock option plan, leaving 23,774,556 options available to be issued.
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.