CALGARY, ALBERTA–(Marketwired – April 6, 2016) – Blackbird Energy Inc. (“Blackbird“) (TSX VENTURE:BBI) is pleased to follow up its recent acquisition of firm sales gas takeaway in the Alliance pipeline system to the Chicago gas market by executing a Letter of Intent (“LOI“) with a third party for the transportation and processing of sour natural … Continued
CALGARY, ALBERTA–(Marketwired – April 6, 2016) – Blackbird Energy Inc. (“Blackbird“) (TSX VENTURE:BBI) is pleased to follow up its recent acquisition of firm sales gas takeaway in the Alliance pipeline system to the Chicago gas market by executing a Letter of Intent (“LOI“) with a third party for the transportation and processing of sour natural gas produced from its condensate-rich Elmworth project. This critical step of establishing transportation and processing evolves Blackbird from an explorer to a producer.
Blackbird and the third party expect to execute a firm gas handling agreement (“GHA“) in the near term, of which all terms have been established and agreed upon within the LOI. The LOI terms negotiated encompass both firm 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.
Blackbird’s recently announced 2-20 middle Montney well, which tested at a restricted rate of 1,768 boe/d (comprised of 6.8 mmcf/d and 641 bbls/d of liquids), has given Blackbird’s management the confidence to enter into a transportation and sour natural gas processing agreement and to construct the required infrastructure for Blackbird to achieve production. The commencement of transportation and sour natural gas processing is expected to occur on or before January 1, 2017, with commencement available on November 1, 2016 subject to certain third party facility enhancements and regulatory approvals.
The third party natural gas transportation tie-in point is 3.8 km (2.4 miles) south of Blackbird’s battery site. Blackbird is currently in the late stages of its infrastructure engineering and design process. Blackbird’s infrastructure solution will include a battery, a pipeline gathering system and a water disposal system. This pipeline gathering system will accommodate the future development of up to 75 de-risked well locations with minimal incremental expansion costs. Blackbird’s infrastructure solution is scalable and able to support future production growth.
With its recently announced acquisition of firm sales gas take-away to the Alliance Chicago Exchange, the near term execution of the GHA and the imminent construction of its infrastructure solution, Blackbird will achieve its goal of transitioning from an explorer to a producer and will then proceed with the execution of its growth objectives at its condensate-rich Elmworth project.
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.
Advisories and Forward Looking Information
This press release contains forward-looking statements or information (collectively referred to herein as “forward-looking statements”). Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements and are not guarantees of future performance of the Company. Such forward looking statements include but are not limited to: the eventual execution of the GHA and the imminent construction of any infrastructure solution, that Blackbird can now achieve its goal of transitioning from an explorer to a producer and proceed with its growth objectives at it condensate-rich Elmworth project, or the timing for the commencement of any gas transportation and processing.
No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a downturn in general economic and business conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with oil and gas exploration, development and production including drilling and completion risks, (3) the price of and demand for oil and gas and their effect on the economics of oil and gas exploration, (4) any number of events or causes which may delay or cease exploration and development of the Company’s property interests, such as environmental liabilities, weather, mechanical failures, safety concerns and labour problems, (5) the risk that the Company does not execute its business plan, (6) inability to retain key employees, (7) inability to finance operations and growth, and (8) other factors beyond the Company’s control. Should one or more of these risks or uncertainties materialize, or should any of the Company’s assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. Readers are cautioned that the foregoing list of risks, uncertainties and other factors is not exhaustive. Unpredictable or unknown factors not discussed could also have material adverse effects on forward-looking statements. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are dependent on other factors, and the Company’s course of action would depend on its assessment of the future considering all information then available. All forward-looking statements in this press release are expressly qualified in their entirety by these cautionary statements. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or management’s estimates or opinions change.
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