VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/19/10 -- Blackbird Energy Inc. ('Blackbird' or the 'Corporation') (TSX VENTURE: BBI) is pleased to announce that it has entered into an agreement with the vendor of its Mathers-Gordon Prospect, amending the terms of the original purchase agreement.
Pursuant to the amended terms, Blackbird has increased its interest in the Prospect from 50% to 75%. In consideration for the foregoing, Blackbird has agreed to (1) a one-time payment of US$30,000, (2) pursue a three well farm out arrangement (with step out provisions) for further development of key formations in the Prospect, and (3) finish the recompletion of the two Mathers Prospect wells currently in process. In addition, the amended terms provide for an accelerated payback to Blackbird for all costs incurred to date and all subsequent re-completion costs.
As previously announced, Blackbird has re-entered two Mather's Prospect wells located in the Thorndike Field, Gray County, Texas. The Mathers 2-74 and 2A-74 wells were re-entered, perforated and fracture stimulated, and have been awaiting further re-completion efforts. The requirement for additional work on these wells provided an ideal opportunity to negotiate an increase to Blackbird's interest, for what the Corporation feels is a nominal amount given the added value.
Garth Braun, Blackbird CEO, stated, 'We are extremely pleased with the new terms of our arrangement and the fact that we could increase our interest with such favorable conditions. Under these revised terms, we have further incentive to successfully re-complete the two wells. In regards to the farm-out condition that we have negotiated, we are very pleased at this opportunity to mitigate our risk and preserve capital. The Granite Wash is a very high profile field with substantial interest, and so we are confident on entering into a farm out on terms very favorable to Blackbird. We anticipate entering into a three well farm out package in the near future.'
Blackbird's wholly-owned subsidiary Blackbird Energy LLC ('Blackbird Energy') holds a 75% interest in 3,857 acres of leasehold land located in Gray County, Texas known locally as the 'Mathers-Gordon Prospect'. The Mathers-Gordon Prospect is a multi pay oil and gas prospect. Blackbird Energy is the operator of the prospect. In addition, Blackbird plans to actively look for further oil and gas properties for acquisition or potential joint ventures.
On behalf of the board of BLACKBIRD ENERGY INC.
William L. Macdonald, President and Director
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's anticipated production from the two Mathers wells. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. 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. 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 conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with oil and gas exploration and production, (3) a decreased demand for natural gas, (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. These forward-looking statements are made as of the date of this news release and, except as required by law, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.
The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release. Neither 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 release.
Blackbird Energy Inc.