Write up. Blackbird Energy Inc. (BBI-V)
Website: www.blackbirdenergyinc.com
Blackbird Energy Inc. has announced that it has executed a strategic infrastructure memorandum of understanding (MOU) with Mistral Energy Inc. to pursue the development of a gas gathering system and processing infrastructure in the Elmworth / Gold Creek area which will serve Blackbird and other producers.
The MOU contemplates the development of facilities to handle 20 mmscf/d of Blackbird's associated gas, with a future expansion to handle up to 35 mmscf/d. The facilities planned total capacity will be 50 mmscf/d of sour gas, with provisions for handling another 70 mmscf/d of sweet gas, and additional potential expansions thereafter. Processing facilities will be staged with packaged and modularized units to reduce field installation time and cost, and to allow for expanded capacity to be quickly and efficiently matched to drilling activity and well results.
The MOU further contemplates the building of an 8 inch or larger pipeline and gathering system that will run from the Blackbird's Elmworth lands south of the Wapiti River to existing infrastructure and ultimately the new Mistral sweet and sour gas facilities planned for Gold Creek/Kakwa.
Mistral Energy Inc. is comprised of the management team which recently developed the 700 km Vantage Pipeline project and a 50 mmscf/d cryogenic gas plant in Saskatchewan with a 70 km gas gathering trunk line.
Garth Braun, CEO of Blackbird noted, "Blackbird is at the beginning of an exciting period of growth and is pleased to continue to proactively address the challenges that are present in the Elmworth / Gold Creek corridor. The addressing of infrasture and egress will allow Blackbird to continue its strategy of aggregating additional land at a cost effective basis in its core area. Blackbird is also looking forward to building a strong relationship with Mistral Energy Inc.".
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Blackbird Energy Inc. has announced that, in connection with its previously announced offering of special warrants and flow-through common shares on a "bought deal" private placement basis, Blackbird and the syndicate of underwriters led by National Bank Financial Inc. and including Raymond James Ltd., Haywood Securities Inc., TD Securities Inc., Cormark Securities Inc. and Jennings Capital Inc. (collectively, the Underwriters), have agreed to increase the size of the offering to an aggregate of 15,900,000 common shares to be issued on a flow-through basis in respect of Canadian Exploration Expenses (the Flow-Through Shares) at a price of $0.34 per Flow Through Share. The size of the previously announced offering of special warrants (the Special Warrants) remains unchanged at 86,207,000 Special Warrants. Aggregate gross proceeds of the Special Warrants and Flow-Through Shares will now be approximately $30.4 million.
Blackbird is also pleased to announce an increase to the previously announced non-brokered private placement of Special Warrants (the Non-Brokered Private Placement) to 24,138,000 Special Warrants at a price of $0.29 per Special Warrant for gross proceeds of approximately $7.0 million.
The financings are scheduled to close on or about October 15, 2014 and are subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange, and other securities regulator authorities as applicable.
QIS Capital: With the closing of this financing, Blackbird will have around $47 million in cash, 4-5 immediate wells to drill in the exciting Montney formation, AND with a proactive approach to setting in place a plan to construct pipeline and gathering facilities that can handle a very large production flow, the company is sending a message to the market that they expect to be successful and to become a significant player in the Montney area. With Blackbird’s large land position in the middle of major producers, the company has up to 300 locations that can drilled making this an enviable foothold in the area. Blackbird has received several institutional research articles in the past few weeks and is garnering increasing attention from the investment community. If anyone would like a copy of some of these articles, please contact us. Blackbird will be speaking at our Calgary Small-Cap Conference next week. |
