CALGARY, Alberta, June 26, 2018 (GLOBE NEWSWIRE) — (TSX-V:BBI) Blackbird Energy Inc. (“Blackbird” or the “Company”) is pleased to announce record financial and operational results for the quarter ended April 30, 2018. Blackbird’s unaudited condensed consolidated interim financial statements and related management’s discussion and analysis for the quarter ended April 30, 2018 are available on SEDAR at www.sedar.com and are also posted on Blackbird’s website at www.blackbirdenergyinc.com.
“This was another exceptional quarter for Blackbird. We achieved record quarterly revenue of $6.4 million on the back of strong condensate pricing and a corporate liquids weighting of 56%. Our development north of the Wapiti River is expected to commence in August. This next leg of development will allow Blackbird to graduate to an intermediate producer, and will continue to unlock the value of our significant condensate rich resource in the Pipestone / Elmworth Montney Corridor,” said Garth Braun, President, CEO and Chairman of Blackbird.
Highlights
See below for a summary table containing certain financial and operational figures:
By the Numbers – Q3 2018 | ||||||||||||
(CDN$ thousands, except where otherwise noted) | Three months ended April 30 | Nine months ended April 30 | ||||||||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | |||||||
Financial(1) | ||||||||||||
Petroleum and natural gas sales | 6,414 | 3,312 | 94 | 15,032 | 3,437 | 337 | ||||||
Cash provided by (used in) operating activities | 2,811 | (1,122 | ) | 351 | 4,233 | (4,084 | ) | 204 | ||||
Net loss and comprehensive loss | (47 | ) | (1,500 | ) | (97 | ) | (3,489 | ) | (7,436 | ) | (53 | ) |
Net loss per share – basic and diluted ($/share) | (0.00 | ) | (0.00 | ) | – | (0.00 | ) | (0.01 | ) | (100 | ) | |
Working capital | 5,336 | 71,823 | (93 | ) | 5,336 | 71,823 | (93 | ) | ||||
Available funding(2) | 24,618 | 72,123 | (66 | ) | 24,618 | 72,123 | (66 | ) | ||||
Capital expenditures | 4,786 | 16,259 | (71 | ) | 51,518 | 54,439 | (5 | ) | ||||
Operating(1) | ||||||||||||
Production | ||||||||||||
Condensate & oil (bbls/d) | 753 | 384 | 96 | 586 | 130 | 351 | ||||||
NGLs (bbls/d) | 58 | 37 | 57 | 45 | 12 | 275 | ||||||
Natural gas (mcf/d) | 3,802 | 2,663 | 43 | 3,046 | 882 | 245 | ||||||
Non-core (boe/d) | 2 | 3 | (33 | ) | 2 | 8 | (75 | ) | ||||
Total (boe/d) | 1,447 | 868 | 67 | 1,141 | 297 | 284 | ||||||
Liquids ratio (%) | 56 | 49 | 14 | 55 | 48 | 15 | ||||||
Condensate & oil gas ratio (bbls/mmcf) | 198 | 144 | 38 | 192 | 147 | 31 | ||||||
Total liquids gas ratio (bbls/mmcf) | 213 | 158 | 35 | 207 | 161 | 29 | ||||||
Average Montney realized selling prices | ||||||||||||
Condensate & oil ($/bbl) | 76.77 | 62.35 | 23 | 72.02 | 62.47 | 15 | ||||||
NGLs ($/bbl) | 26.63 | 27.81 | (4 | ) | 29.39 | 27.83 | 6 | |||||
Natural gas ($/mcf) | 3.33 | 4.57 | (27 | ) | 3.77 | 4.57 | (18 | ) | ||||
Netbacks ($/boe) | ||||||||||||
Petroleum and natural gas sales | 49.81 | 42.87 | 16 | 48.27 | 42.45 | 14 | ||||||
Royalties | (3.28 | ) | (2.93 | ) | 12 | (2.97 | ) | (2.88 | ) | 3 | ||
Operating expenses | (6.96 | ) | (10.34 | ) | (33 | ) | (7.36 | ) | (11.84 | ) | (38 | ) |
Transportation and processing expenses | (12.29 | ) | (14.75 | ) | (17 | ) | (12.83 | ) | (16.21 | ) | (21 | ) |
Operating netback(2) | 27.28 | 14.85 | 84 | 25.11 | 11.52 | 118 | ||||||
General and administrative expenses | (8.24 | ) | (15.30 | ) | (46 | ) | (9.66 | ) | (35.86 | ) | (73 | ) |
Financing costs | (0.38 | ) | (0.03 | ) | 1,167 | (0.16 | ) | (0.15 | ) | 7 | ||
Interest income | 0.14 | 1.54 | (91 | ) | 0.64 | 3.35 | (81 | ) | ||||
Corporate netback(2) | 18.80 | 1.06 | 1,674 | 15.93 | (21.14 | ) | 175 |
Notes:
(1) See the Company’s Q3 2018 financial statements and related management’s discussion and analysis filed on SEDAR for further discussion and cautionary statements regarding the figures above.
(2) See “Non-IFRS Measures” below.
Q3 2018 Summary
Outlook
Blackbird is highly encouraged by its early-stage results to date from its Pipestone / Elmworth lands. With a liquids weighting of 56% achieved from its production this past quarter, the Company is well positioned to take advantage of condensate prices in Alberta resulting from the supply / demand imbalance that currently exists, and is expected to continue. Global oil prices have also seen a recovery from the lows experienced in 2016 due to the rebalancing efforts of OPEC and non-OPEC producers combined with increased global demand. The Company continued delivering its natural gas to Chicago at favourable prices relative to AECO during the quarter. With natural gas prices in western Canada continuing to falter due to the lack of sufficient take away capacity, Blackbird remains focused on diversifying its transportation for future and long-term production so it can target markets with higher returns and create value from its gas production.
With a strong test result from the Company’s 3-27-71-7W6 Upper Montney delineation well to the north of the Wapiti River management is confident in the long-term development potential of its northern acreage. Blackbird has continued to progress its developments plans for north of the Wapiti River with the acquisition of surface land sites, surveying and well licensing. Blackbird anticipates that it will begin its drilling program in August 2018. The Company will provide additional details as the program is finalized in the coming months. The Company has minimal capital expenditures budgeted for the fourth quarter of 2018.
Blackbird estimates that its exit production for fiscal 2018 will approximate current year to date levels. From May 1, 2018 to the date of this news release, the Company has produced for approximately 48 days. There is currently a planned outage at the Company’s third-party gas processing plant scheduled for the beginning of July 2018 which is expected to cause a service disruption of approximately 14 days. The timing and / or length of this planned outage may change and Blackbird may experience further production interruptions due to unexpected downtimes.
For more information, please view our Corporate Presentation at www.blackbirdenergyinc.com.
About Blackbird
Blackbird Energy Inc. is a highly innovative oil and gas exploration and development company focused on the condensate and liquids-rich Montney fairway at Pipestone / Elmworth, near Grande Prairie, Alberta.