As broken last week by VantageWire and the Bottom Line Report, Blackbird Energy and its partners have officially entered into a pooling agreement with Trilogy Energy.
SOURCE: VantageWire.com - As covered late last week in the Bottom Line Report, and on the front page of VantageWire.com, today Blackbird Energy (TSX-V: BBI) (OTCPK:BKBEF) and its partners have confirmed that they've completed negotiations with Trilogy Energy (TSX: TET) (OTCPK:TETZF) and TAQA North to pool P&NG rights within the Bigstone area of the Montney Formation, known for its liquids-rich deposits.
The recently signed "Cross-Conveyed Pooling and Participation Agreement" pools Blackbird and its partners' section 28-060-22W5 with the adjacent section 33-060-22W5 jointly held by Trilogy Energy and TAQA North the purpose of drilling an extended reach horizontal, Joint Well on the Pooled Lands.
"Trilogy has been very active and successful in utilizing horizontal drilling and multi stage fracturing techniques to develop resource plays including the Montney, and we look forward to the positive results this relationship should achieve," says Garth Braun, President and CEO of Blackbird Energy.
"Recent well licenses issued in December and January for extended reach Montney horizontals at locations in close proximity to our Bigstone acreage by industry competitors provides us with further evidence of the reserves potential of the Montney. The pooling of a portion of our lands has resulted in expanding our gross acreage position, a feat (gaining land position) of which is becoming more and more difficult with the heightened focus the Bigstone area appears to be attracting."
Going forward, Blackbird will hold an undivided 12.5% pooled interest in the Pooled Lands and will participate as to a 12.5% working interest in the development of the Pooled Lands. This setup may potentially include drilling up to 4 additional extended reach Joint Wells on the Pooled Lands.
The pooling results in Blackbird holding interests in a total of 8 sections (5,120 acres) or 1.75 net sections (1,120 acres) of land at Bigstone, instead of its previous 25% interest in 7 sections (4,480 acres) or 1.75 net sections (1,120 acres).
Work is set for the pooled lands, with the initial Joint Well scheduled to be drilled from its surface location within LSD 4 of section 28-060-22W5M through underneath LSD 5 of section 28-060-22W5M, then drilled horizontally approximately 2,568 meters through to a bottom hole location on the Pooled Lands within LSD 13 of section 33-060-22W5M. Blackbird's original partner, Donnybrook Energy Inc. (TSX-V: DEI), remains operator of drilling operations and has secured a drilling rig. Drilling is expected to commence this Friday on March 2, 2011.
G. Joel Chury
Editor in Chief
VantageWire - Energy
Disclaimer: No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. VantageWire makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the VantageWire only and are subject to change without notice. VantageWire assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. The author of this article does not currently own shares of any of the companies mentioned in this article. Furthermore, VantageWire assumes no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.