Blackbird Energy Inc. (ticker: BBI) is pure-play focused on the Pipestone liquids-rich corridor of the Montney shale. The company holds a total of 120 gross, 103.9 net sections—equivalent to 76,800 gross, 66,496 net acres—in the Montney shale play, all of which are contiguous.
Acquisitions
Over the past several months, Blackbird has undertaken a number of acquisitions in order to increase its presence in the Montney resource play. In the words of Garth Braun—chairman, CEO, and president of Blackbird—the perception existed, “that there was a ‘donut hole’ in the Pipestone Montney” that disallowed effective production. The efforts of Blackbird’s innovation have paid off after, “the number of wells drilled and completed in [Blackbird’s] corridor has increased from approximately 20 to over 260,” and that the “donut hole has been filled in.”
In March, 2017, Blackbird closed the acquisition of two gross, two net sections—equivalent to 1,280 gross/net acres—in the Montney from Knowledge Energy Inc. Also in March, the company closed the acquisition of 13 gross, 3.1 net sections within the Montney from Paramount Resources Ltd. for 5,000,000 common shares. Blackbird closed a third land acquisition of eight gross, 2.8 net sections of land—again from Paramount—for an additional 5,000,000 common shares.
Projects with Stage Completions
In pursuing completion optimization in its horizontal wells, Blackbird is working with Stage Completions Inc., a private company in which Blackbird has held a 10% indirect interest since November, 2016.
Blackbird has implemented Stage’s Bowhead II fracturing system in two wells with the hopes of delivering an increase in expected ultimate recovery, and will continue with further implementation of Stage’s completion systems.
Blackbird’s Montney assets
Separated into two zones—delineated by six wells—Blackbird’s Montney assets are liquid-rich with more than 300 barrels of liquid per Mmcf of gas in the upper Montney and more than 125 barrels of liquid per Mmcf of gas in the lower Montney.
“Condensate is the only competitive oil and gas resource in Canada, and we’ve got it.” Braun told Oil & Gas 360®.
In the Pipestone asset, six wells have been drilled, completed, and are producing. The asset contains a 10 Mmcf per day gas facility, and infrastructure in the area is prevalent. Blackbird’s proved reserves in the Pipestone resource play total 30,525 MBOE. The proved reserves values have only been evaluated for two intervals of four total intervals that Blackbird believes may contain significant hydrocarbon potential. The company completed a public offering in March for gross proceeds of $84.8 million that will fund Blackbird’s drilling program, which the company expects will include the drilling and completion of approximately 12 Elmworth/ Pipestone Montney wells and the related tie-in, equipping and pipeline gathering system costs.
This capital will provide the catalyst Blackbird needs to produce approximately 32 MBOEPD by 2021.
Source: Blackbird Energy
“We’ve crushed D&C costs and now we have the capital to work toward [our 2021] goal,” said Braun. “We believe the resource is there, now we’re working on takeaway and processing capacity to get us there.”
For 2017, the company plans to drill eight development wells to build its production base. Blackbird also plans to drill four exploration wells to prove multiple intervals on Blackbird’s eastern acreage and north of the Wapiti River and build out infrastructure further moving forward, according to the presentation.
Blackbird Energy presenting at EnerCom’s The Oil & Gas Conference® 22
Blackbird will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.
The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors. The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.
Source: Blackbird Energy
