CALGARY, ALBERTA–(Marketwired – July 25, 2017) – Blackbird Energy Inc. (“Blackbird” or the “Company“) (TSX VENTURE:BBI) is pleased to provide an operational update regarding its 2017 delineation and development program and expansion of the Eastern Pipestone/Elmworth Gathering System (“Eastern Gathering System”). Blackbird is also pleased to announce that it has increased its Montney rights in the Pipestone/Elmworth corridor to 125 gross sections (108.9 net sections).
Highlights
- 2017 Delineation and Development Program: Blackbird has focused on furthering the development of its southern Wapiti core area, enhancing production capacity, and the continued delineation of its extensive Montney resource. In the next quarter the budgeted program encompasses the drilling, completion and recompletion of a total of six development wells and the drilling and completion of four (1.75 net) delineation wells.
- Recompletion Program: Blackbird has successfully recompleted the first of three wells. The remaining two wells are planned to be recompleted in August and September, respectively, with initial production testing to follow thereafter.
- Gathering System Expansion: Blackbird has commenced surveying of its Eastern Gathering System, which will tie in production from the 2-20-70-6W6 (11-9 surface) well and service future development wells on Blackbird’s eastern lands south of the Wapiti. Construction is expected to commence post regulatory approval with an estimated budget of $4.4 million. The Eastern Gathering System is anticipated to be brought on stream in the first half of 2018.
Delineation and Development Program
Operated Wells
We are pleased to provide the status and timeline for the drilling and completion of three development wells and one delineation well on our northern multi-interval land block.
02/6-26-70-7W6 Upper Montney Development Well
The previously announced 02/6-26-70-7 Upper Montney well was spud on June 10, 2017 from surface location 14-14-70-7W6 and drilled to a measured depth of 4,808 meters, including an approximately 2,100 meter lateral section. The well was drilled for approximately $2.6 million. Completion operations are scheduled for August 12, 2017 utilizing the STAGE Generation Four 8620 Sleeve System. The completion program will place approximately 75 tonnes of sand per stage over approximately 52 stages. Blackbird plans to tie-in and flow-test the well into existing infrastructure, with initial production anticipated by late August, 2017.
2-28-70-7W6 Middle Montney Development Well
The 2-28-70-7 Middle Montney well was spud on July 11, 2017 from surface location 11-15-70-7 W6. Currently the well is being drilled in the lateral section and the planned measured depth is 5,004 meters, including an approximately 2,050 meter lateral section. Completion operations are scheduled for August 26, 2017 utilizing the STAGE Generation Four 8620 Sleeve System. The completion program will place approximately 75 tonnes of sand per stage over approximately 52 stages. Following completion, the well will be tied in and flow-tested into existing infrastructure, with initial production anticipated by September, 2017.
1-20-70-7W6 Upper Montney Development Well
The 1-20-70-7 Upper Montney well is expected to be spud the first week of August from surface location 10-8-70-7W6. The well has a planned measured depth of 4,600 meters, including an approximately 2,000 meter lateral section. Completion operations are scheduled for the first week of October utilizing the STAGE Generation Four 8620 Sleeve System. The completion program will place approximately 75 tonnes of sand per stage over approximately 51 stages. Blackbird plans to tie-in and flow-test the well into existing infrastructure, with initial production anticipated by late October, 2017
7-27-71-7W6 Upper Montney Delineation Well
The 7-27-71-7 Upper Montney delineation well is expected to be spud at the end of August from surface location 7-33-71-7W6. The well has a planned measured depth of 4,500 meters, including an approximately 2,000 meter lateral section. Completion operations are scheduled for the latter portion of October utilizing the STAGE Generation Four 8620 Sleeve System. The completion program will place approximately 75 tonnes of sand per stage over approximately 51 stages. This well targets the Upper Montney at Pipestone/Elmworth and will test and delineate the “Volatile Oil” window on the northern portion of Blackbird’s land. This well is an approximate 10 km northern step-out from Blackbird’s existing operated wells and is important both for the continued delineation of the “Volatile Oil” window as well as continuing a significant portion of Blackbird’s northern multi-interval land block. The well will be flow-tested post completion to evaluate productive capability and reservoir quality.
Non-operated Delineation Wells
Blackbird has participated in the drilling and completion operations of three (.75 net) non-operated delineation wells.
14- 30-70-7W6 Upper Montney Well
The 14- 30-70-7 Upper Montney well in which Blackbird has a 17.9% working interest is located north of the Wapiti and has been drilled, completed and initial production tested. This well delineates the “Volatile Oil” window on the western edge of Blackbird’s lands and also retains one section of Blackbird’s land that was in near term expiry. The well was drilled to a total measured depth of 5,350 meters and a lateral length of 2,861 meters.
13-04-70-6W6 and the 3-17-70-5W6 Middle Montney Wells
The 13-04-70-6 and the 3-17-70-5 Middle Montney wells, in which Blackbird has a 37.5% and 20% working interest, respectively, are located south of the Wapiti and have both been drilled and completed. Both wells will further delineate the “Volatile Oil” window and also will allow for the retention of Blackbird’s southeastern lands. The 13-04-70-6 well was drilled to a total measured depth of 5,615 meters and a lateral length of 3,056 meters and the 3-17-70-5 well was drilled to a total measured depth of 5,320 meters and a lateral length of 2,876 meters.
Recompletions
02/2-20-70-7W6 Upper Montney Development Well
The 02/2-20-70-7 Upper Montney well was successfully refrac’d in mid-June using plug and perf and diverter agents. The completion consisted of 33 intervals at 30 meters spacing and approximately 1,650 tonnes of sand was placed. Tubing was installed July 16, 2017 and the well is tied in and is in clean-up phase with a projected IP30 date of early September.
15-21-70-7W6 Upper Montney Development Well
The 15-21-70-7 Upper Montney well is scheduled to be refrac’d in late August in conjunction with the 2-28-70-7 Middle Montney well. The Company is evaluating two completions options, being either pin-point or plug and perf. The planned completion program will be to place approximately 2,700 tonnes of sand in the refrac.
2-20-70-6W6 Middle Montney Development Well
The 2-20-70-6 Middle Montney well is scheduled to be refrac’d in the middle of September. The Company is evaluating two completions options, being either pin-point or plug and perf. Management estimates that less than 20% of the well was completed during initial fracing operations. The 2-20-70-6 well produced approximately 395 bbls/d of light oil and 243 mcf/d gas during the last 24 hours of a 111-hour production test. This well confirms the presence of and extends the “Volatile Oil” window more than 5 km eastward from Blackbird’s previous wells. This well is also important for the continuation of a portion of Blackbird’s southeast land block and is planned to be tied in once the Eastern Gathering System is completed.
Short-Term (24-hour) Test Rates(3) | |||||
Well | Montney Interval |
Average Flowing Casing Pressure |
Raw Gas Production |
Oil Production |
Total Combined Production |
(kPa)(2) | (mmcf/d) | (bbls/d) | (boe/d) | ||
2-20-70-6W6(1)(4) | Middle | 2,499 | 0.24 | 395 | 436 |
Notes: | |
(1) | Based on camera run performed, management estimates that this well was producing through a limited number of stages due to mechanical issues experienced in the wellbore during completion operations. Management is unable to determine the exact number of producing stages. Management believes this well will be capable of higher production rates once the well is re-completed. The 2-20 (surface 11-9) well flowed on clean-up for a total of 111 hours. |
(2) | The 2-20 (surface 11-9) well produced through a 14.3 millimeter choke at the beginning of the final 24-hour test period and a 25.4 millimeter choke at the end of the final 24-hour test period. At the end of the 24-hour test period, the flowing casing pressure was 2,205 kPa. |
(3) | Represents average production rates from the 2-20 (surface 11-9) well over the final 24 hours of the 111-hour production test. The Company cautions that test results and initial production rates are not necessarily indicative of long-term well or reservoir performance or of ultimate recovery. Actual results will differ from those realized during testing or an initial short-term production period, and the difference may be material. |
(4) | The 2-20 (surface 11-9) well produced an average of approximately 1,399 bbls of load fluid per day over the final 24 hours of the 111-hour production test. |
Resource Delineation and Land Retention
Upon completion of Blackbird’s initial 2017 development and delineation program, the Company will have a total of five Upper Montney wells and three Middle Montney wells on production, and five (2.75 net) wells behind pipe. These wells will span over four townships, with the 02/2-20-70-7 and 2-20-70-6 wells being approximately six sections apart on an east/west basis and the 7-27-71-7 and 2-20-70-6 wells being approximately eight sections apart on a north/south basis.
This drilling program will delineate a large portion of Blackbird’s contiguous land block. See Figure 1 below for an illustration of these well locations and Blackbird’s planned future Eastern Gathering System.
To view Figure 1: Blackbird’s 13 Montney Wells and Planned Eastern Gathering System, please visit the following link: http://media3.marketwire.com/docs/bbi0725fig1.pdf.
Eastern Gathering System Expansion
Blackbird has commenced surveying of its Eastern Gathering System. When completed the Eastern Gathering System will tie in production from our 2-20-70-6W6 (11-9 surface) well and serve as the backbone for tieing in all future development wells on Blackbird’s eastern lands south of the Wapiti. Construction is expected to commence post regulatory approval with an estimated budget of $4.4 million. The Eastern Gathering System is anticipated to be brought on stream in the first half of 2018.
Industry Activity Adjacent to Blackbird’s Lands
The Pipestone/Elmworth Montney corridor continues to be one of the most actively drilled areas in Western Canada. Within two townships of Blackbird’s land holdings, over 80 wells have been spud or rig released in the Montney since January 1, 2017 as illustrated with the wells highlighted in red in Figure 2 below.
To view Figure 2: Industry drilling activity adjacent to Blackbird’s holdings, please visit the following link: http://media3.marketwire.com/docs/bbi0725fig2.pdf.
Garth Braun, Blackbird’s Chairman, Chief Executive Officer and President stated: “Our 2017 delineation and development program continues to focus on building meaningful reserves, increasing the ability for our company to produce natural gas, oil and liquids and delineate the “Volatile Oil” window to complement the development block in the condensate window to the west. Our strategic delineation of the Upper and Middle Montney intervals over a large geographic area has provided us with very valuable information regarding our resource in-place, and solidifies our confidence in the next phase of Blackbird’s growth. We will continue our delineation program and proceed into a development phase on our eastern development block. Through this development phase, we will look to increase production and reserves while maximizing the value in lockstep with our infrastructure buildup.”
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 Elmworth, near Grande Prairie, Alberta.
For more information, please view our Corporate Presentation at www.blackbirdenergyinc.com.