Resource World Magazine

A P R I L / M A Y 2 0 1 6 www.resourceworld.com 55 B uoyed by their most recent discovery, Blackbird energy Inc. [BBI-TSXV] is proving that all isn't lost in the oil and gas sector. Blackbird recently announced produc- tion test results from its 2-20-70-7W6 Middle Montney well at Elmworth, Alberta that, at 1,768 Boe/d, ranks the 2-20 well in the top tier of well results in the Montney play. The well de-risked approximately 25 sections of the Middle Montney on top of the already 25 sections de-risked for the Upper Montney. "This well also confirmed that our resource is economic in today's price-con- strained commodity market," said Joshua Mann, Blackbird's vice-president of busi- ness development, in an email. The 2-20 well was drilled into the Middle Montney formation to a total mea- sured depth of 4,660 metres, including a 2,008-metre horizontal leg. Blackbird com- pleted the well using sliding sleeve frac technology and an innovative energized CO 2 foam frac with 70 individual stages. A total of 10,531 m 3 (88,317 Bbls) of load fluid and 9,226 m 3 of CO 2 distributed an average of 31.75 tonnes of proppant per stage over the 70 stages. The 2-20 well flowed on cleanup for a total of 751 hours and recovered approximately 43% of its load fluid, in addition to 3,027 Bbls (481.4 m3) of condensate and 2,150 e 3 m 3 of CO 2 . During the final 24-hour test, the casing pressure averaged 7,973 kpa. Blackbird fully expects that the 2-20 well is con- tinuing to clean up and that productivity will increase as additional load fluid is recovered. Blackbird's operational success was achieved through innovation on multiple fronts, including drilling the first Montney monobore well at Elmworth, utilizing a sliding sleeve completion system with the highest number of individual fracs in the area, and successfully implementing the largest CO 2 completion in Canada. Blackbird was founded in 2009 as a Capital Pool Company. The company, in its current form, really began in 2013 when it became an operator and started to assemble the Elmworth Project. Since then they've increased their wholly-owned land base to 75 sections (48,000 acres) at a cost of $6.8 million, compared to area transac- tions as high as $35 million for 12 sections. "Since 2013 we have also assembled an entire team and drilled three highly impactful wells and…we are now moving to cash flow," said Mann. The project is focused on a tight cor- ridor of the highly liquids-rich Montney resource, which is seen as economic even at today's prices, a resource that contains large quantities of condensate. Blackbird is currently focused on both the Upper Montney and Middle Montney intervals, which allow for up to 12 wells per section, which gives them more than 900 drilling locations. "This immense resource is what has drawn the likes of Canadian Natural Resource, Encana, Nuvista, Apache and Shell to our corridor," said Mann. Blackbird Energy prides itself on being a highly innovative exploration company that is moving to production and cash flow in the near term. As they focus on achiev- ing production from their first three wells, they're transitioning from an exploration company to a development company. "This excites me because once we achieve production we will be able to begin to grow organically," said Mann. "That is to say, we will be able to grow through our own cash flow. What also excites me is that even at current prices our wells are economic. This goes to the careful due diligence that was conducted prior to assembling our land position and the inno- vative drilling and completion programs we have employed on our project." Blackbird has managed to avoid the pitfalls of the recent industry downturn and has cash on the balance sheet and zero debt, which has allowed them to carry on with business as usual through the down- turn. It has also allowed them to focus on the next steps – movement to cash flow – without having to fret about interest payments. They're growing at a time when others are shrinking, said Mann. n Blackbird Energy pleased with Montney well test by Bruce Lantz OIL & g A s "Blackbird's operational success was achieved through innovation on multiple fronts, including drilling the first Montney monobore well at elmworth, utilizing a sliding sleeve completion system with the highest number of individual fracs in the area, and successfully implement- ing the largest CO 2 completion in Canada." www.resourceworld.com

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