CALGARY, Alberta, Sept. 13, 2018 (GLOBE NEWSWIRE) — (TSX-V: BBI) Blackbird Energy Inc. (“Blackbird” or the “Company”) is pleased to announce results from its independent year-end reserves evaluation prepared by McDaniel & Associates Consultants Ltd. (“McDaniel”) as at an effective date of July 31, 2018 (the “McDaniel Report”) and provide a brief operational update. McDaniel prepared the evaluation in accordance with the standards set out in National Instrument 51-101 of the Canadian Securities Administrators and the Canadian Oil and Gas Evaluation Handbook.
“This reserves evaluation is another exceptional milestone for Blackbird as we continue to unlock the value of our Pipestone/Elmworth Montney asset. With our next leg of development focused entirely north of the Wapiti River on largely un-reserved lands, we expect to be able to deliver significant reserves growth subsequent to the tie-in of our northern development wells to the Tidewater facility, which remains on schedule for a mid-2019 start-up.” said Garth Braun, President, CEO and Chairman of Blackbird.
- Increase of 126% in Proved Developed Producing Reserves: Proved developed producing (“PDP”) reserves were 3,175.9 Mboe at July 31, 2018, a 126% increase from July 31, 2017. The increase in PDP reserves was primarily attributable to the inclusion of 4.8 net additional wells in the McDaniel Report, bringing Blackbird’s total productive well count to 8.8 net wells for the year ended July 31, 2018.
- Increase of 9% in Proved Plus Probable Reserves: Proved plus probable (“2P”) reserves were 59,096.7 Mboe at July 31, 2018, an 9% increase from July 31, 2017.
- 2P NPV10 of $411.0 Million: The estimated net present value of related future net revenue at July 31, 2018 (before taxes, discounted at 10%) was $44.9 million for Blackbird’s PDP reserves ($15.1 million at July 31, 2017) and $411.0 million ($395.3 million at July 31, 2017) for its 2P reserves, notwithstanding a lower natural gas price forecast for the July 31, 2018 reserves report.
- Moving to a Tighter Inter-well Spacing: The McDaniel Report reflects an inter-well spacing of 267 meters between wells in the same layer, versus 400 meters between wells in the same layer in McDaniel’s independent reserves evaluation as at July 31, 2017. The reduction in inter-well spacing is attributable to increased supporting data from analogue wells, and provides visibility to a potentially significant increase to the ultimate drilling inventory across Blackbird’s Pipestone/Elmworth Montney acreage.
- Successful Drilling of First Extended Reach Horizontal: Blackbird is pleased to report that it has successfully completed the drilling of its 102/2-27-71-07W6 Upper Montney well, including a record lateral length of 2,956 meters in 22.9 days. The 102/2-27-71-07W6 is the Company’s first extended reach horizontal and was drilled with an increased hole size to accommodate larger production casing, which management expects will provide for increased liquids rates.
- Spudding of Second Extended Reach Horizontal: Blackbird spud its second extended reach Upper Montney well from its 9-14 pad-site on September 8, 2018 using the same drill program as its 102/2-27-71-07W6 well. In total, the Company plans to drill and complete seven Montney wells on its lands north of the Wapiti River by mid-2019.
Summary of Reserves
The following tables summarize the estimates of Blackbird’s gross reserves at July 31, 2018 and July 31, 2017, as estimated by McDaniel, Blackbird’s independent qualified reserves evaluators, using the forecast price and cost assumptions in effect at the applicable reserves evaluation date:
|Summary of Gross Reserves(1)|
|July 31, 2018||July 31, 2017||Change from
July 31, 2017
|Proved Developed Producing||3,175.9||1,407.0||126%|
|Total Proved Plus Probable||59,096.7||54,372.7||9%|
|(1) Gross reserves are working interest reserves before royalty deductions.|
|Summary of Reserves at July 31, 2018(1)(2)|
|Oil||Natural Gas||Natural Gas Liquids(3)||Total Oil Equivalent|
|Total Proved Plus Probable||52.6||49.0||182,908.1||165,665.0||28,559.5||22,566.2||59,096.7||50,226.0|
|(1) “Gross” means Blackbird’s working interest (operating or non-operating) share before the deduction of royalties and without including any royalty interests of Blackbird. “Net” means Blackbird’s working interest (operating or non-operating) share after the deduction of royalty obligations, plus Blackbird’s royalty interests in reserves.|
|(2) Numbers may not add due to rounding.|
|(3) Includes field condensate.|
Further information regarding the Company’s reserves data, other oil and gas information, and business activities as at and for the year ended July 31, 2018 will be provided in Blackbird’s annual information form and statement of reserves data and other oil and gas information under National Instrument 51-101, for the year ended July 31, 2018, which will be available on SEDAR at www.sedar.com and will be posted on the Company’s website at www.blackbirdenergyinc.com in connection with the release of Blackbird’s audited financial statements for the year ended July 31, 2018.
Schachter Energy Conference – September 29th, 2018
Blackbird is pleased to announce it will be attending the Schachter Energy Conference on Saturday September 29th, 2018 at the Telus Convention Centre in Calgary, Alberta. Corporate materials related to the conference will be made available on the Company’s website at www.blackbirdenergyinc.com pursuant to the conference. Please refer to the following link for conference details www.schachterenergyreport.ca/conference-2018.
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.