Montney can be a global player
Blackbird Energy (ticker: BBI) CEO Garth Braun presented at the 2017 EnerCom Conference today, outlining Blackbird’s current activities.
Braun gave an overview of the pros and cons affecting Blackbird and the oil and gas industry in the Montney in general. As always, oil and gas prices are a major source of volatility for any company in this industry. According to Braun, though, the superior economics seen in the Montney can combat cost creep.
Several governments in Canada, both local and regional, have become less business-friendly in recent elections. However, Braun mentioned that in Alberta the two major conservative parties recently merged, creating a unified pro-development political party.
Nearby activities suggest significant value
Braun spoke on Paramount Resources’ (ticker: POU) recent acquisition of Apache’s (ticker: APA) Montney acreage, as the lands purchased are very near Blackbird’s holdings. Blackbird estimates that the lands involved in this transaction are valued at $7.1 million per section, with a clear path to monetize more than $3 billion from the asset. Blackbird holds 109 net sections, 50% more than Paramount acquired, and Blackbird’s acreage is more contiguous.
NuVista Energy (ticker: NVA) also recently made announcements about acreage near Blackbird’s holdings. NuVista plans to drill more than 120 wells on 11 sections, which will allow that asset to produce 10,000 BOEPD for ten years. This plan has good implications for Blackbird, as Blackbird holds nearly ten times as many sections.
2016 goals accomplished, 2017 goals set
Braun also presented his “report card” outlining how the company delivered on goals from last year. Blackbird has successfully drilled an Upper Montney well to help delineate the zone, and drilled it faster than promised. The company has continued to add more acreage, reaching 125 gross sections.
Current goals are similar: continue to delineate the acreage and zones Blackbird holds, increase processing and takeaway capacity, grow production, and continue land aggregation.
