CALGARY, ALBERTA–(Marketwired – May 19, 2016) – Blackbird Energy Inc. (TSX VENTURE:BBI) (“Blackbird” or the “Company“) is pleased to announce that, further to the press release of Blackbird dated April 6, 2016, Blackbird has executed a binding take-or-pay Gas Handling Agreement (“GHA“) with a third party for the firm transportation and processing of sour natural gas produced from Blackbird’s condensate-rich Elmworth project.
The GHA provides firm service transportation to the third party’s sour gas plant and the processing of 6 mmcf/d of natural gas and associated liquids from Blackbird’s Elmworth project. The GHA is effective on or before January 1, 2017 (the “Effective Date“), with capacity available as early as November 1, 2016 subject to certain third party facility enhancements and regulatory approvals. The GHA shall continue for a term of 24 months from the Effective Date, at which time Blackbird and the third party will seek to extend the term on a best efforts basis.
Blackbird’s infrastructure solution will include a battery, a pipeline gathering system and a water disposal system. Blackbird is currently in the late stages of its surface acquisition, infrastructure engineering and design process regarding its infrastructure solution. Blackbird’s infrastructure solution is intended to be scalable and able to support future production growth. The third party natural gas transportation tie-in point is 3.8 km (2.4 miles) south of Blackbird’s planned battery site.
With the previously announced unit and CDE flow-through financing which closed on May 19, 2016, the previously announced acquisition of firm sales gas take-away to the Alliance Chicago Exchange, the execution of the GHA, and the imminent construction of Blackbird’s infrastructure solution, Blackbird endeavors to achieve its goal of transitioning from an explorer to an Elmworth Montney producer and developer.
About Blackbird
Blackbird Energy Inc. is an 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.