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Blackbird Energy Inc. Announces First Quarter 2018 Financial and Operating Results

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CALGARY, Alberta, Dec. 28, 2017 (GLOBE NEWSWIRE) -- (TSX-V:BBI) Blackbird Energy Inc. ("Blackbird" or the "Company") is pleased to announce its financial and operational results for the quarter ended October 31, 2017. Blackbird's unaudited condensed consolidated interim financial statements and related management's discussion and analysis for the quarter ended October 31, 2017 are available on SEDAR at www.sedar.com and are also posted on Blackbird's website at www.blackbirdenergyinc.com.

Q1 2018 Highlights

  • Q1 2018 Production: While on production during the quarter, Blackbird produced 5.6 mmcf/d of natural gas, 863 bbls/d of condensate and 80 bbls/d of NGLs for total production of 1,876 boe/d. During the three months ended October 31, 2017, Blackbird averaged production of 2.1 mmcf/d of natural gas, 328 bbls/d of condensate and 30 bbls/d of NGLs for total production of 712 boe/d (including non-core production) despite significant third party natural gas processing plant shut-downs, which resulted in significant increases to per boe operating costs. Blackbird was only able to produce for approximately 35 days during the first quarter of 2018 compared to 92 total calendar days in the quarter which resulted in $2.6 million of revenue.
  • Third Party Processing: Post the first quarter of 2018, run times at the third party natural gas processing facility have improved significantly. A number of repairs were performed while the facility was down from November 1st to November 14th, and as a result from November 15th to December 26th, Blackbird has been able to produce for a total of 38 days or at 90% run time, already exceeding the prior quarters days on production;
  • Q1 2018 Condensate Gas Ratio: 155 bbls/mmcf during the three months ended October 31, 2017;
  • Q1 2018 Total Liquids Gas Ratio: 170 bbls/mmcf during the three months ended October 31, 2017;
  • Q1 2018 Revenue: $2.6 million during the three months ended October 31, 2017;
  • Q1 2018 Operating Netback: $14.37/boe during the three months ended October 31, 2017;
  • 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;
  • Capital Investment: Blackbird invested $29.2 million during the three months ended October 31, 2017, drilling 2 gross (1.2 net) wells, completing 4 gross (2.4 net) wells, recompleting 1 gross (1.0 net) well and bringing 2 gross (2.0 net) wells on production. At October 31, 2017, the Company also had the 6-33-71-7W6 drilling and 2-20-70-6W6 recompletion operations in progress which were subsequently completed in November;
  • Total Assets: $194.6 million at October 31, 2017 compared to $90.9 million at October 31, 2016, representing a 114% increase;
  • Balance Sheet: Working capital of $21.3 million at October 31, 2017, which included $33.8 million of cash and no bank debt; and
  • Land: During the three months ended October 31, 2017 Blackbird acquired 8 gross (8 net) sections of additional Montney lands for cash consideration of $1.4 million, increasing its total Pipestone / Elmworth Montney land position to 131 gross (114.9 net) sections at October 31, 2017.

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

 
By the Numbers – Q1 2018
(CDN$ thousands, except where otherwise noted) Three months ended October 31
2017   2016   % Change  
         
Financial      
Petroleum and natural gas revenue 2,582   15   17,113  
Funds used in operating activities (2,114 ) (1,235 ) 71  
Net loss and comprehensive loss (1,737 ) (1,059 ) 64  
Net loss per share – basic and diluted ($/share) (0.00 ) (0.00 ) -  
Total assets 194,587   90,858   114  
Working capital 21,317   30,064   (29 )
Capital expenditures 29,241   7,350   298  
       
Operating      
Production      
Condensate (bbls/d) 328   -   -  
NGLs (bbls/d) 30   -   -  
Natural gas (mcf/d) 2,112   -   -  
Non-core (boe/d) 2   14   (86 )
Total (boe/d) 712   14   4,986  
Liquids ratio (%) 50   -   -  
Condensate gas ratio (bbls/mmcf) 155   -   -  
Total liquids gas ratio (bbls/mmcf) 170   -   -  
       
Average Montney realized selling prices      
Condensate ($/bbl) 60.50   -   -  
NGLs ($/bbl) 30.26   -   -  
Natural gas ($/mcf) 3.44   -   -  
       
Netbacks ($/boe)      
Petroleum and natural gas revenue 39.41   11.65   238  
Royalties (2.09 ) -   -  
Operating expenses (10.62 ) (82.30 ) (87 )
Transportation and processing expenses (12.33 ) -   -  
Operating netback(1) 14.37   (70.65 ) 120  
       
Pipestone / Elmworth Montney sections of land (net) 114.9
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