Blackbird Energy Inc. Provides Initial Production Results From Its Condensate-Rich Pipestone/Elmworth Montney Play

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CALGARY, Alberta, Jan. 09, 2018 (GLOBE NEWSWIRE) — (TSX-V:BBI) Blackbird Energy Inc. (“Blackbird” or the “Company”) is pleased to provide initial production results from three new development wells on its condensate-rich Pipestone/Elmworth Montney play, announce the completion of its planned delineation program and provide its preliminary 2018 outlook.

“A key focus for Blackbird in 2017 was the continued application of high intensity completions to our wells on the Pipestone/Elmworth corridor. Our objective in pushing the limits on completion intensity has been to prove elevated higher-valued condensate cuts and enhance liquids recoveries through the life of our wells. We are very encouraged by early stage condensate production from our wells, and believe completing longer-extended reach wells with more proppant and more stages will enhance our economics. We look forward to continuing the delineation of our condensate-rich Pipestone/Elmworth Montney play through both extended production data and preliminary results from new wells being tested or brought on production in 2018,” commented Garth Braun, President, Chief Executive Officer and Chairman of Blackbird.

Initial Production Results

Blackbird is pleased to announce that its total corporate December sales production averaged an estimated 1,972 boe/d (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.

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.

The Company cautions that initial production and short-term peak rates are not necessarily indicative of long-term well or reservoir performance or of ultimate recovery. 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

Given the nature of the Company’s future commitments, Blackbird’s capital obligations in the first half of 2018 will be limited. Activity is expected to accelerate in the second half of 2018 as the Company prepares to meet previously-disclosed future processing commitments. Blackbird is in a strong financial position and as at October 31, 2017 the Company 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. Additionally, with improved run times Blackbird anticipates to benefit from a more meaningful and consistent stream of revenues from its producing assets.

The Company expects to 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. If successful, the Company believes that these wells would further validate Blackbird’s economic multi-interval drilling inventory outside current proved plus probable reserve bookings.

About Blackbird
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.