Blackbird Energy Inc. (ticker: BBI) had production results from three new development wells on its condensate-rich Pipestone/Elmworth Montney play. Blackbird also completed its planned delineation program and provided its preliminary 2018 outlook.
Initial Production Results
Blackbird’s total corporate December sales production averaged an estimated 1,972 BOEPD (55% liquids), with production online for 28 of a possible 31 days through the month.
Consistent run times through December allowed Blackbird to collect initial 30-day production (IP30) data from three of its most recent development wells, as detailed below:
| Well | IP30(1)(2)(3)(4) | ||||||||
| Condensate (bbl/d) | Natural Gas (mcf/d) | NGLs (bbl/d) | CGR(5)(bbls/mmcf) | Total (boe/d) | % Load Water Recovered(6) | Lateral Length (meters) | |||
| 02/6-26-70W6 (Upper Montney) | 475 | 1,076 | 20 | 460 | 674 | 37 | % | 2,103 | |
| 2-28-70-7W6 (Middle Montney) | 300 | 1,881 | 24 | 172 | 636 | 24 | % | 1,977 | |
| 15-21-70-7W6 (Upper Montney) | 289 | 1,424 | 18 | 216 | 543 | 14 | % | 1,300 | |
| 1) Production from these wells has been restricted at times due to third party processing capacity limitations and water injection limitations. 2) Numbers may not add due to rounding. 3) All disclosed production rates and volumes are presented net of any load water. 4) All volumes are based on field estimated production data. 5) CGR includes condensate and NGL production. 6) Load water is not included in any of the other volumes reported. |
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| Well | Peak 48 Hour Rate During Initial 30-day Production Period(1)(2)(3)(4) | |||||||||
| Condensate (bbl/d) | Natural Gas (mcf/d) | NGLs (bbl/d) | CGR(5)(bbls/mmcf) | Total (boe/d) | Lateral Length (meters) | |||||
| 02/6-26-70W6 (Upper Montney) | 701 | 1,221 | 21 | 591 | 924 | 2,103 | ||||
| 2-28-70-7W6 (Middle Montney) | 412 | 1,728 | 22 | 251 | 721 | 1,977 | ||||
| 15-21-70-7W6 (Upper Montney) | 421 | 1,724 | 22 | 257 | 729 | 1,300 | ||||
| 1) Production from these wells has been restricted at times due to third party processing capacity limitations and water injection limitations. 2) Numbers may not add due to rounding. 3) All disclosed production rates and volumes are presented net of any load water. 4) All volumes are based on field estimated production data. 5) CGR includes condensate and NGL production. |
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Blackbird cautions that initial production and short-term peak rates are not necessarily indicative of long-term performance, and such rates are preliminary in nature and may not be representative of stabilized on-stream production rates. Actual results will differ from those realized during a short term initial production or peak measurement period, and the difference may be material.
02/6-26-70-7W6 Upper Montney Development Well
- The 02/6-26-70W6 Upper Montney Development well was brought on-stream in late September.
- The well was drilled to a total depth of 4,808 meters with a lateral of 2,103 meters and completed over 42 intervals using a combination of the STAGE Generation Four Sleeve System and Plug and Perf.
- Approximately 3,193 tonnes of sand was placed representing a completion intensity of approximately 1.5 tonnes per meter.
- Over its initial 30 days on production the well produced at an average rate of 674 boe/d including 475 bbl/d of condensate.
- At the end of the 30 day period the well had recovered approximately 37% of load frac water.
2-28-70-7W6 Middle Montney Development Well
- The 2-28-70-7W6 Middle Montney Development well was brought on-stream in mid-November.
- The well was drilled to a total depth of 4,942 meters with a lateral of 1,977 meters and completed over 46 intervals using the STAGE Generation Four Sleeve System.
- Approximately 3,521 tonnes of sand was placed representing a completion intensity of approximately 1.8 tonnes per meter.
- Over its initial 30 days on production the well produced at an average rate of 636 boe/d including 300 bbl/d of condensate.
- At the end of the 30 day period the well had recovered approximately 24% of load frac water.
15-21-70-7W6 Upper Montney Development Well
- The 15-21-70-7W6 Upper Montney Development well was brought on-stream in mid-November.
- The well was drilled to a total depth of 4,120 meters with a lateral of 1,300 meters and was re-fractured in 24 stages with four to five intervals per stage for a total of 108 intervals using Plug and Perf.
- Approximately 3,170 tonnes of sand was placed representing a completion intensity of approximately 2.4 tonnes per meter.
- Over its initial 30 days on production the well produced at an average rate of 543 boe/d including 289 bbl/d of condensate.
- At the end of the 30 day period the well had recovered approximately 14% of load frac water.
2018 Outlook
As of October 31, 2017 Blackbird had positive working capital of approximately $21.3 million. Blackbird continues to evaluate a number of non-dilutive options available to facilitate future growth and development, including access to an expanded credit facility.
Blackbird said they will have early production results from four additional wells before the end of March, including test data from its recently completed 3-27-71-7W6 Upper Montney Northern Delineation well (surface location 6-33-71-7W6) as well as its 2-20-70-6W6 Middle Montney Development well, which is more than 5 kilometers east of Blackbird’s previous development drilling.
