PDP Reserves up 126%

Canadian junior Blackbird Energy (ticker: BBI) announced reserves today and provided an update on the results of its recent drilling efforts.

Blackbird reports PDP reserves at 3.18 MMBOE, more than double last year’s reserve level.

These new reserves are all booked through Blackbird’s drilling program, as the company added 4.8 net wells to its productive well count for the year. The company’s 2P reserves were much more steady at 59.1 MMBOE, up 9% from last year. Blackbird’s NPV10 for PDP reserves increased significantly, reaching $44.9 million, compared to $15.1 million last year, despite a lower natural gas price forecast.

Spacing reduction

One major development in this year’s reserves report is well spacing. This year’s reserves are based on an inter-well spacing of 267 meters between wells in a layer, while last year’s reserves assumed 400 meters. This reduction in assumed spacing is based on additional data from analogue wells.

  July 31, 2018 July 31, 2017 Change from
Reserves Category (Mboe) (Mboe) July 31, 2017
Proved Developed Producing 3,175.9 1,407.0 126%
Total Proved 29,128.2 28,577.8 2%
Probable 29,968.5 25,794.9 16%
Total Proved Plus Probable 59,096.7 54,372.7 9%


First XRL drilled, second spudded, 7 wells on tap by mid-2019

On the operational side, Blackbird is beginning to focus on drilling longer wells. The company drilled its first extended reach lateral well recently, with a lateral just under 3,000 meters in length. This well also was drilled with a larger hole size which will accommodate a larger production casing, as the company expects this will allow increased liquids production rates.

The company plans to follow up this well with a second extended reach horizontal well, which it spud earlier in the week. In total, Blackbird plans to drill and complete seven Montney wells in its northern acreage by mid-2019.

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