Market Overview

Blackbird Energy Inc. Announces Year End 2017 Reserves, Financial and Operating Results

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CALGARY, Alberta, Nov. 28, 2017 (GLOBE NEWSWIRE) -- (TSX-V:BBI) Blackbird Energy Inc. ("Blackbird" or the "Company") is pleased to announce its reserves, financial and operational results for the year ended July 31, 2017. Blackbird's audited consolidated financial statements, management's discussion and analysis, annual information form and statement of reserves data and other oil and gas information, as mandated by National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators, for the year ended July 31, 2017 are available on SEDAR at www.sedar.com and are also posted on Blackbird's website at www.blackbirdenergyinc.com.

Significant 2017 Highlights

  • Gas Processing: In November, 2017 Blackbird executed an agreement for firm processing of raw gas produced from the Company's condensate rich Pipestone / Elmworth Montney play. The agreement has an initial term of five years with firm capacity of 20.0 mmcf/d expected to commence in the second quarter of calendar 2019, increasing to 25.0 mmcf/d twelve months after plant start-up and to 30.0 mmcf/d eighteen months after plant start-up;
  • Equity Financings: Closed an upsized and over-subscribed marketed public offering for total gross proceeds of $84.8 million on March 14, 2017, a non-brokered private placement for total gross proceeds of $5.1 million on November 1, 2016 and a non-brokered private placement for total gross proceeds of $8.0 million on October 27, 2016;
  • Capital Investment: Blackbird invested $78.3 million during the year ended July 31, 2017, drilling 10 gross (6.2 net) wells, completing 7 gross (4.0 net) wells, recompleting 1 gross (1.0 net) wells, bringing 4 gross (4.0 net) wells on production and constructing / commissioning its Pipestone / Elmworth facility as well as associated gathering system;
  • Total Assets: $191.9 million at July 31, 2017 compared to $79.6 million at July 31, 2016, representing a 141% increase;
  • Balance Sheet: Working capital of $48.8 million at July 31, 2017, which included $60.5 million of cash and no bank debt;
  • Reserves: Reported Pipestone / Elmworth Montney proved plus probable ("2P") reserves estimated before tax net present value using a 10% discount rate ("NPV10%") of $395 million at July 31, 2017, an increase of 858% from July 31, 2016;
  • Land: During the year ended July 31, 2017 Blackbird acquired a total of 46.25 gross (30.2 net) sections of additional Pipestone / Elmworth Montney lands;
  • 2017 Production: While on production during the year, Blackbird produced 5.2 mmcf/d of natural gas, 665 bbls/d of condensate, and 78 bbls/d of NGLs for total production of 1,609 boe/d. During the year ended July 31, 2017, Blackbird averaged production of 1.3 mmcf/d of natural gas, 170 bbls/d of condensate, and 20 bbls/d of NGLs for total production of 419 boe/d despite significant third party natural gas processing shut-downs, which resulted in significant increases to operating costs. Blackbird's four tied-in wells produced for an average of 94 days during fiscal 2017, compared to 365 total calendar days in the year;
  • 2017 Condensate Gas Ratio: 128 bbls/mmcf during the year ended July 31, 2017;
  • 2017 Total Liquids Gas Ratio: 143 bbls/mmcf during the year ended July 31, 2017;
  • 2017 Revenue: $6.2 million during the year ended July 31, 2017;
  • 2017 Operating Netback: $8.63/boe during the year ended July 31, 2017;
  • Q4 Production: While on production during the quarter, Blackbird produced 5.5 mmcf/d of natural gas, 594 bbls/d of condensate, and 88 bbls/d of NGLs for total production of 1,589 boe/d. During the three months ended July 31, 2017, Blackbird averaged production of 2.7 mmcf/d of natural gas, 291 bbls/d of condensate, and 43 bbls/d of NGLs for total production of 782 boe/d despite significant third party natural gas processing shut-downs, which resulted in significant increases to operating costs. Blackbird's four tied-in wells produced for an average of 45 days during Q4 2017, compared to 92 total calendar days in the quarter;
  • Q4 Condensate Gas Ratio: 109 bbls/mmcf during the three months ended July 31, 2017;
  • Q4 Total Liquids Gas Ratio: 125 bbls/mmcf during the three months ended July 31, 2017;
  • Q4 Revenue: $2.8 million during the three months ended July 31, 2017; and
  • Q4 Operating Netback: $5.34/boe during the three months ended July 31, 2017.

See below for a summary table containing certain 2017 financial and operational figures:

By the Numbers – 2017      
(CDN$ thousands, except where otherwise noted) Three months ended July 31 Year ended July 31
2017   2016   % Change   2017   2016   % Change  
Financial (1)
Petroleum and natural gas revenue 2,797   8   34,863   6,234   33   18,791  
Funds provided by (used in) operating activities 1,285   (377 ) (441 ) (2,799 ) (2,856 ) (2 )
Net (loss) income (3,164 ) (1,331 ) 138   (10,600 ) 69   (15,462 )
Net (loss) income per share – basic and diluted ($/share) (0.00 ) (0.00 ) -   (0.02 ) 0.00   -  
Total assets 191,906   79,602   141   191,906   79,602   141  
Working capital 48,759   29,454   66   48,759   29,454   66  
Capital expenditures 23,855   2,201   984   78,294   17,673   343  
Operating (1)
Production            
Condensate (bbls/d) 291   -   -   170   -   -  
NGLs (bbls/d) 43   -   -   20   -   -  
Natural gas (mcf/d) 2,664   -   -   1,331   -   -  
Non-core (boe/d) 4   9   (56 ) 7   6   17  
Total (boe/d) 782   9   8,589   419   6   6,883  
Liquids ratio (%) 43   -   -   45   -   -  
Condensate gas ratio (bbls/mmcf) 109   -   -   128   -
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