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Blackbird Energy Inc. Provides an Operational Update Including Estimated Monthly Sales Volumes, a Test Result From Its Pipestone/Elmworth Montney Play, Estimated Productive Capacity, and the Pending Tie-In of Non-Operated Wells

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CALGARY, Alberta, Feb. 01, 2018 (GLOBE NEWSWIRE) — (TSX-V:BBI) Blackbird Energy Inc. (“Blackbird” or the “Company”) is pleased to announce its estimated total corporate January sales production, the test results from its 1-20-70-7W6 Upper Montney Development well, an estimate of current behind-pipe productive capacity, details surrounding the pending tie-in of 5 (1.2 net) non-operated wells, and the continued expansion of Blackbird’s acreage.

“A key objective for Blackbird has been to further define the liquids potential, reservoir pressure and productivity of its Pipestone/Elmworth Montney play. With the strong results to date including our most recent well testing at a short-term rate of 1,054 boe/d, we believe we are in the late stages of de-risking the majority of our acreage. Blackbird now has 8 (8.0 net) wells tied-in on its Western Development Block. Based on management estimates the current productive capacity of these wells is in excess of 3,800 boe/d, which we believe further validates the productivity of our resource. In addition to our operated production, 5 (1.2 net) non-operated wells are expected to be tied-in and brought on production over the next two quarters.” said Garth Braun, President, CEO and Chairman of Blackbird.

Highlights

  • January Sales Production: Blackbird is pleased to announce that its total corporate January sales production averaged an estimated 1,978 boe/d (58% liquids) for the 17 days the Company was able to produce during the month. Estimated sales production averaged 1,056 boe/d on a calendar day basis through January, with volumes being impacted by approximately 14 days of unscheduled third party downtime.
  • Strong Test Result: Blackbird’s 1-20-70-7W6 Upper Montney Development well was flowed back on clean-up for approximately 11 days. Over the final 48 hours of the production test, prior to running production tubing, the well flowed at 1,054 boe/d (54% liquids, condensate/gas ratio of 192 bbls/mmcf).
  • Estimated Behind Pipe Volumes: Blackbird has now tied-in a total of 8 (8.0 net) wells that management estimates have an unrestricted productive capacity in excess of 3,800 boe/d. In addition, the Company expects to test its 2-20-70-6W6 Middle and 3-27-71-7W6 Upper Montney Delineation wells in February and March, respectively.
  • Tie-in of Non-Operated Wells on Eastern Multi-Interval Delineation Block: Blackbird expects to bring on production from 5 (1.2 net) non-operated wells over the next two quarters. Results from these wells will provide valuable data relating to the longer-term development potential of its unbooked Eastern Multi-Interval Delineation Block (the “Eastern Block”).
  • Advancing Multi-Interval Delineation: Blackbird has largely delineated the liquids rich corridor across its Pipestone/Elmworth Montney play, and after testing the 2-20-70-6W6 Middle Montney and 3-27-71-7W6 Upper Montney Delineation wells as planned in February and March, respectively, believes that it will have established approximately 114 of 134 gross sections of Montney lands as situated in the over-pressured liquids-rich corridor.
  • Continued Expansion of Blackbird Acreage:  Blackbird has acquired an additional 3 (2.0 net) sections of Montney rights bringing total land holdings to 134 (114.5 net) sections in the Pipestone/Elmworth corridor.

January Sales Production

Blackbird is pleased to announce that its total corporate January sales production averaged an estimated 1,978 boe/d (58% liquids) for the 17 days the Company was able to produce during the month. Estimated sales production averaged 1,056 boe/d on a calendar day basis through January, with volumes being impacted by approximately 14 days of unscheduled third party downtime.

Strong Test Result

Blackbird is pleased to provide test results from its 1-20-70-7W6 Upper Montney Development well, on the southwestern edge of its condensate-rich Pipestone/Elmworth Montney play, as detailed below:

Well Final 48 Hour Rate of 11 Day Production Test(1)(2)(3)(4)
Condensate
(bbl/d)
Natural Gas
(mcf/d)
NGLs (bbl/d) CGR(5)
(bbls/mmcf)
Total
(boe/d)
Lateral
Length
(meters)
1-20-70-7W6 526 2,946 38 192 1,054 2,012
1) The final 48 hour test rate was comprised of the final 48 hours of actual production testing and did not include downtime of approximately 6.5 hours caused by unscheduled third party maintenance.
2) Numbers may not add due to rounding.
3) All disclosed production rates and volumes are presented net of any load fluid recovery. By the end of the 11-day production test period the well had recovered approximately 11% of load frac water.
4) All volumes are based on field estimated production data.
5) Condensate/gas ratio (CGR) includes condensate and NGL production.

The Company cautions that short-term test rates are not necessarily indicative of long-term well or reservoir performance or of ultimate recovery.  See “Short Term Test Rates” below.

The 1-20-70-7W6 Upper Montney Development well was drilled to a total depth of 4,590 meters with a lateral of 2,012 meters and completed over 42 intervals using a hybrid of the STAGE System and Plug and Perf. Approximately 4,040 tonnes of sand was placed representing a completion intensity of approximately 2.0 tonnes per meter. The well was flowed up casing on clean-up for approximately 11 days. Over the final 48 hours of production testing, prior to running production tubing, the well flowed at 1,054 boe/d (54% liquids, CGR of 192 bbls/mmcf). At the end of the test period the well had recovered approximately 11% of load frac water. The final 48 hours of production testing did not include downtime of approximately 6.5 hours caused by unscheduled third party maintenance.

Estimated Behind Pipe Volumes

Blackbird has now drilled, completed and tied-in a total of 8 (8.0 net) wells to its 100% owned and operated Pipestone/Elmworth gas processing facility. The unrestricted flowing productive capacity of these wells, stabilized after initial testing procedures, is currently estimated by management to be in excess of 3,800 boe/d based on the Company’s own production test data. The Company cautions, however, that future production and reservoir performance cannot be predicted with certainty and may be less than estimated, and may also be subject to factors that restrict production to a level below an unrestricted flowing productive capacity. Blackbird is currently subject to a take-or-pay gas handling agreement for firm transportation and processing of sour natural gas that limits the Company to approximately 6.0 mmcf/d of natural gas and associated liquids.

In addition to the above noted 8 (8.0 net) wells, the Company expects to complete testing its 2-20-70-6W6 Middle Montney Delineation well by late February, and to test its 3-27-71-7W6 Upper Montney Delineation well, which is approximately 14 kilometers north of its previous development drilling, by the end of March. If successful, Blackbird believes that these results will further validate the Company’s economic multi-interval drilling inventory outside its current proved plus probable reserve bookings.

Tie-in of Non-Operated Wells

Blackbird expects to bring on production from 5 (1.2 net) non-operated wells from its Eastern Block over the next two quarters. Results from these wells will provide valuable data relating to the longer-term development potential of its unbooked Eastern Block. The 3-17-70-5W6 Middle Montney well (20.0% working interest) has been tied-in, and the Company’s partner is currently in the process of obtaining the necessary approvals to commence the construction of pipelines for the tie-in of the other 4 (1.0 net) wells. Further, Blackbird has participated in one (17.9% working interest) non-operated well on its Western Development Block which has been successfully tested.

Advancing Multi-Interval Delineation

Blackbird has largely delineated the liquids rich corridor across its Pipestone/Elmworth Montney play, and after testing the 2-20-70-6W6 Middle Montney and 3-27-71-7W6 Upper Montney Delineation wells as planned in February and March, respectively, believes that it will have established approximately 114 of 134 gross sections of Montney lands as situated in the over-pressured liquids-rich corridor.

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.

For more information, please view our Corporate Presentation at www.blackbirdenergyinc.com or contact:

Blackbird Energy Inc.
Garth Braun
Chairman, CEO, and President
(403) 500-5550
gbraun@blackbirdenergyinc.com

Allan Dixon
Manager, Business Development
(403) 699-9929 Ext. 103
adixon@blackbirdenergyinc.com

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