Blackbird Energy Announces Farm Out Agreement at Mantario Oil Project

Calgary, Alberta (TSXV:BBI) Blackbird Energy Inc. has entered into a Farmout Agreement with a private oil and gas investment company in order to drill the first two horizontal wells at Blackbird’s Mantario Oil Project. Additionally, Blackbird gave an update on its operations regarding its Elmworth Montney Acreage.

As quoted in the press release:

Under the terms of the Agreement, PrivateCo will pay an aggregate of approximately $1,600,000, or 100% of the costs to drill, complete and equip two horizontal wells with a minimum of 600 metres of horizontal length, in order to earn a 50.0% working interest in the Project. There is no payout being offered with respect to this agreement.

In addition to the capital commitments noted above, the Agreement also provides for the cash payment by PrivateCo of an aggregate of approximately $200,000 for land acquisition costs and data incurred by Blackbird in respect of the subject lands. Blackbird will be the operator for the project. Blackbird and PrivateCo expect to commence drilling operations at the beginning of Q4 2014 subject to rig availability.

Blackbird CEO, Garth Braun, said:

We are very pleased to be bringing in a financial partner to our Mantario Oil Project that will not only accelerate the development of our oil discovery in Saskatchewan but will also allow Blackbird to add further focus to the development of its Montney acreage at Elmworth.

Click here to read the Blackbird Energy Inc. (TSXV:BBI) press release