Blackbird Energy announces purchase of additional oil & gas assets through its subsidiary

Blackbird Energy Inc. (TSX VENTURE:BBI) announce that its recently acquired wholly-owned subsidiary, Ruger Energy Inc. ("Ruger"), has purchased certain oil and gas assets from Twin Butte Energy Inc. for total cash consideration of $540,000 (the "Acquisition").

The assets (the "Flaxcombe Project") are located near Ruger's current oil production and water disposal facilities in the Alsask area (the "Alsask Project") and will allow for optimization and operating cost savings. Based on a McDaniels and Associates reserve estimate of 126,000 boe (P+P) deal metrics are $4.29/boe and $19,286/producing day barrel. Current production at the Flaxcombe Project is 28 boepd.

The Flaxcombe Project is accretive to Blackbird's Alsask Project. The Flaxcombe Project is comprised of a total of 5,041 acres (net 2,393 acres) in West Central Saskatchewan. Blackbird will have 100% working interest in the Sparky oil property with 3 producing oil wells. The Acquisition includes 3D seismic coverage over the complete Sparky oil pool and two development oil well locations have been identified based on the 3D technical review.

Garth Braun, CEO of Blackbird stated, "This acquisition expands Blackbird's land position in this area of focus and the Blackbird team believes that this project and our holdings in the area provide an opportunity to grow shareholder value. Blackbird's team is focused on diversifying its interest with the addition of these lower risk development oil projects in West Central Saskatchewan. The team is also focused on originating new high quality oil plays through the assembly of additional land positions."

Darrell Denney, COO of Blackbird stated, "Our primary focus in 2013 is to establish a solid base of oil production. We will operate in areas where finding and development costs are lower and land is available. The Flaxcombe acquisition satisfies that criteria with low cost development drilling, acquisition opportunities and land availability. This oil focus will provide a balance to our Bigstone property long-life liquid rich gas reserves."

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More

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Source: http://feeds.oilvoice.com/~r/NorthAmericaHeadlines/~3/RyJvUZgBBTs/a376a6933350.aspx

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