CALGARY, ALBERTA–(Marketwired – Oct. 25, 2016) – (TSX VENTURE:BBI) Blackbird Energy Inc. (“Blackbird” or the “Company“) is pleased to announce a non-brokered private placement of 16,500,000 common shares in the capital of the Company to be issued on a “flow-through” basis (“Flow-Through Common Shares“) pursuant to the Income Tax Act (Canada) (“ITA“) in respect of Canadian Exploration Expenses (“CEE“) at a price of $0.485 per share for gross proceeds of $8,002,500 (the “CEE Private Placement“).
Blackbird is also pleased to announce a non-brokered private placement of 10,650,000 Flow-Through Common Shares pursuant to the ITA in respect of Canadian Development Expenses (“CDE“) at a price of $0.47 per share for gross proceeds of $5,005,500 (the “CDE Private Placement“).
Strategic Accelerated Business Plan
In recent months it has become clear to Blackbird that significant momentum is building in the greater Elmworth/Pipestone corridor, and that there is the potential for great value achievement if Blackbird’s business plan is accelerated.
The proceeds from the CEE Private Placement and CDE Private Placement (the “Private Placements“) will allow Blackbird to capitalize on this momentum and accelerate its business plan through the initiation of a revised drilling program. The revised drilling program will consist of the previously announced 02/2-20 Upper Montney well, which was spud on October 8, 2016, at least one CEE eligible well, and one CDE eligible well (the “Program“). It is anticipated that the Program will be completed during the first half of 2017.
The Program is anticipated to accelerate the delineation of Blackbird’s contiguous 87.25 net section Elmworth/Pipestone asset, build additional reserves and behind-pipe production, and contribute to Blackbird’s production and cash-flow upon the commissioning of the Company’s infrastructure facility and pipeline gathering system in late December, 2016.
In addition to providing for the Program, the Private Placements will allow for the allocation of Blackbird’s current working capital towards other growth initiatives if deemed by management to be in the best interest of Blackbird’s shareholders.
The closing of the Private Placements is subject to the Company receiving all necessary regulatory approvals, including approval from the TSX Venture Exchange. The Company may pay finder’s fees consisting of cash and/or common shares pursuant to the closing of the Private Placements.
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
Advisories and Forward Looking Information
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
This press release contains forward-looking statements or information (collectively referred to herein as “forward-looking statements”). Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements and are not guarantees of future performance of the Company. Such forward looking statements include but are not limited to: the acceleration of Blackbird’s business plan, the build of Blackbird’s reserves and behind-pipe production, Blackbird’s future production and cash-flow, the commissioning of the Company’s infrastructure facility and pipeline gathering system, the pursuit of other potential growth initiatives if deemed to be in the best interests of Blackbird’s shareholders, the closing of the Private Placements and the Company receiving all related necessary regulatory approvals to close the Private Placements.
No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a downturn in general economic and business conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with oil and gas exploration, development and production including drilling and completion risks, (3) the price of and demand for oil and gas and their effect on the economics of oil and gas exploration, (4) any number of events or causes which may delay or cease exploration and development of the Company’s property interests, such as environmental liabilities, weather, mechanical failures, safety concerns and labour problems, (5) the risk that the Company does not execute its business plan, (6) inability to retain key employees, (7) inability to finance operations and growth, and (8) other factors beyond the Company’s control. Should one or more of these risks or uncertainties materialize, or should any of the Company’s assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. Readers are cautioned that the foregoing list of risks, uncertainties and other factors is not exhaustive. Unpredictable or unknown factors not discussed could also have material adverse effects on forward-looking statements. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are dependent on other factors, and the Company’s course of action would depend on its assessment of the future considering all information then available. All forward-looking statements in this press release are expressly qualified in their entirety by these cautionary statements. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or management’s estimates or opinions change.
THE TSX VENTURE EXCHANGE INC. HAS NEITHER APPROVED NOR DISAPPROVED THE CONTENTS OF THIS PRESS RELEASE. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Garth Braun
Chairman, CEO and President
(403) 500-5550
[email protected]
Jeff Swainson
Chief Financial Officer
(403) 699-9929
[email protected]
Joshua Mann
Vice President, Business Development
(403) 390-2144
[email protected]
