Copyright of the Daily Oil Bulletin 2017
Blackbird Montney 2P Reserves Estimated At 59.17 Million BOE
An independent reserves evaluation of Blackbird Energy Inc.’s Montney acreage at Pipestone/Elmworth has estimated total proved plus probable gross reserves of 59.17 million bbls of oil equivalent (46 per cent natural gas liquids), says the company.
The net present value (NPV) before tax discounted at 10 per cent is $455 million.
In 2013, the company began assessing and assembling its Montney acreage in the area and as of March 27, 2017 holds 116 gross (100.9 net) sections of land.
Blackbird commissioned its level one infrastructure project and commenced production from four Montney wells in January 2017, with its fifth well expected to be tied-in during the first half of 2017 and its sixth well expected to be tied-in upon the construction of an eastern pipeline gathering system.
It recently closed an offering for gross proceeds of $84.8 million, entered into a non-binding nomination for an additional 90 mmcf per day of natural gas processing by 2021, and is implementing a 12 well development and delineation program over the next 12 months.
McDaniel &Associates Consultants Ltd. was engaged to perform reserves and contingent resources evaluations effective March 1, 2017.
NPV10 is $204 million based on the McDaniel Jan.1, 2017 price deck.
Blackbird, which has a 100 per cent working interest in the lands associated with the reserves and the contingent resources, has now booked eight of its Pipestone/Elmworth Montney net sections on a 1P basis, representing 7.9 per cent of its net acreage in the area.
Blackbird has now booked 12 of its Pipestone/Elmworth Montney net sections on a 2P basis. This represents 11.9 per cent of its net Pipestone/Elmworth Montney acreage.
The reserves report contemplates 46 undeveloped 1P drilling locations and 70 undeveloped 2P drilling locations. The expected ultimate recovery is 801,000 boe (46 per cent NGLs) per undeveloped location.
The report contemplates a drillings and completions cost of $6 million per location with total undiscounted 2P capital expenditures of $515 million.
Blackbird also has now booked 21.38 of its Pipestone/Elmworth net Montney sections on a contingent resources basis, representing 21.2 per cent of its net Pipestone/Elmworth Montney acreage.
The company has booked 1P, 2P and contingent resources in two Montney intervals. In addition to these two intervals, management said it believes that there are two additional unbooked highly prospective intervals on the majority of its lands.