Blackbird Energy Inc. – Exploration and Development of Crude Oil and Natural Gas Assets

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Blackbird Energy Inc. – Exploration and Development of Crude Oil and Natural Gas Assets

Overview

Blackbird Energy (CVE:BBI) is engaged in the acquisition, exploration and development of crude oil and natural gas assets with a focus on becoming an independent energy company. The company is actively looking for oil and gas properties for acquisition or potential joint ventures. Blackbird’s management team has the experience and expertise needed to identify, evaluate and develop new natural gas and oil reservoirs.

The Bigstone Montney Shale Prospect, a joint venture with Donnybrook Energy Inc. and ideally located to encounter high natural gas liquids (NGL) rich gas, is the company’s main project. Management is so confident in the company’s potential for success that not one of the members is paid a salary, but have instead chosen stock options as a reward in order to remain focused on making Blackbird into a successful player in the oil & gas sector.

Investment Highlights

  • Experienced management with impressive track-record and desire for success
  • Project in Alberta; one of the world’s most business friendly oil and gas jurisdictions
  • Bigstone prospect located near two major players in the Montney Shale Basin: Trilogy Energy Corp. and Celtic Exploration Ltd.
  • A joint- venture agreement with excellent terms

Chief Projects

Bigstone Montney Shale Prospect

Blackbird Energy’s chief project is located in the Montney Deep Shale Basin, a north-west to south-east trending formation that straddles the border between British Columbia and Alberta.

The region has attracted a lot of attention from major players because it is a thick, highly pressurized formation containing a significant amount of recoverable natural gas reserves located in very fraccable rock. The Montney Shale is estimated to hold 50 trillion cubic feet of natural gas with the presence of high levels of natural gas liquid (NGL) content — worth more than natural gas itself — found through much of the trend.

The Bigstone prospect is located in close proximity to properties owned by Trilogy Energy and Celtic Exploration whose test wells have already proven successful in locating natural gas resources with NGL content. The location of the project isn’t the only plus for Blackbird. In March 2011, the company announced it had entered into a farmout agreement with Donnybrook Energy Inc., a quality operator with significant knowledge of the Montney Deep Shale Basin.

A look at the standard land deals in this region, similar to that of Celtic Exploration, show companies paying $1million to $2million per section of land. Farmout agreements usually involve agreeing to drill one well for every two sections of land while taking on 37.5% of the cost to drill in order to receive a 25% interest in the project. Drill work on each test well usually includes 8,300 ft of vertical drilling plus 1600 meters of lateral drilling to reach the target and earn the full 25% interest.

The Bigstone prospect contains 7 sections of land that were purchased for a mere $250,000. In the agreement Blackbird Energy signed with Donnybrook, Blackbird only needs to drill one well to the heel, or the 8,300 vertical ft, and incur 37.5% of the cost, to earn 25% on not 2, but all 7 of these sections. Once Blackbird has earned it’s interest in the property, all exploration costs moving forward will be split 50/50 by both partners.

 

Management

Garth Braun – CEO & Director

Mr. Braun brings to the company more than 22 years of diversified real estate, finance and oil and gas industry experience in operations, finance and strategic planning. Prior to joining Blackbird Investments Inc., he served as one of the lead Investment Bankers at Gateway Securities Inc. Mr. Braun gained extensive experience in the operations of an international oil and gas company where he served as CEO and Chairman. He has owned and operated several profitable real estate development companies in Canada.

William Macdonald – President & Director

Mr. Macdonald is a founder and principal of Macdonald Tuskey, Corporate and Securities Lawyers, a boutique securities and corporate finance firm located in Vancouver, British Columbia, established in April 2008. From February 1998 to April 2008, Mr. Macdonald was a partner with Clark Wilson LLP and a member of the firm’s Corporate Finance / Securities Practice Group.

Mr. Macdonald has a varied legal practice, focusing on cross-border and international corporate finance, securities and transactional matters. He has been a member of the Law Society of British Columbia since February 1999 and a member of the New York State Bar since February 2002.

Robert Booth – Chairman & Director

 

Mr. Booth holds a BA in Political Science and Urban Studies from Simon Fraser University in Vancouver and an MA in Real Property Development and Planning from the University of British Columbia.

Currently the CEO for Emaar in North America, Mr. Booth oversees Emaar Canada and until June of 2009, also John Laing Homes the second largest home builder in the U.S. In addition, Mr. Booth is also a Director for Hamptons International, a European Real Estate Brokerage with 100 offices and 1,000 staff. Prior to joining Emaar in 2001, Mr. Booth was Director of Development at Concord Adex Developments Corporation in Toronto, Canada.

Dennis Paterson – COO & Director

Mr. Paterson has more than 30 years of international oil and gas exploration and production experience in diverse areas, including China, the Middle East, Central and South East Asia, Kazakhstan, Europe and North and West Africa.From 2006 until 2009, Mr. Paterson was the President of ROC Oil (Bohai) Company in Beijing and an executive director of its parent company ROC Oil Company Limited from 2007 until 2009. At ROC, his primary responsibility was to manage all aspects of the (approx.) US$525 million Zhao Dong field expansion and C4 new field development.

Prior thereto Mr. Paterson formed and managed Genting Oil and Gas Limited based in Kuala Lumpur, which participated in the discovery and subsequent sale of the Vorwata gas field which supplies the BP-operated, Tangguh LNG plant in Papua, Indonesia. Mr. Paterson was also previously the Managing Director of British Gas Malaysia and the Country General Manager for British Gas Indonesia. Mr. Paterson has been a director of a number of small independent oil & gas exploration companies including BPC Limited, Ramco plc and Medusa Oil and Gas. He was a Director of Genting Sanyen Power Sdn Bhd, a 720 MW CCGT plant located at Sepang, Malaysia.

Ron Schmitz – Director

Ron Schmitz is the Principal and President of ASI Accounting Services Inc., which has provided administrative, accounting and office services to public and private companies since July 1995. Mr. Schmitz has been a director of Gold Canyon Resources Inc. (CVE: GCU) since April 1997 and is also its Chief Financial Officer. Mr. Schmitz has been a director of Touchstone Resources Ltd. (CVE: TCH.U) from March 1999 to September 1999, and since March 2001 has been its acting Chief Financial Officer.

From April, 2001 to March, 2004 Mr. Schmitz was a director and President of Bradner Ventures Ltd.He was also the President, CEO and a director of Knightsbridge Resources Inc. from October 2002 to September of 2007. Mr. Schmitz is a graduate of the Associate of Commerce Program from Malaspina College in Nanaimo, B.C. and has completed level 3 of the Certified General Accountants Program.

Michael Sweatman – Director

Mr. Sweatman possesses more than 20 years experience as a Chartered Accountant in public and private practice and has worked with and provided advice to many companies listed on the TSX Venture and Toronto Stock Exchanges. He has been the principal of Michael Sweatman Limited, Chartered Accountant, since 1999, as well as having been the owner-manager of MDS Management Ltd., a personal management company, since November 1992.

Mr. Sweatman was a Director and the Chief Financial Officer of Pan American Gold Corporation. He is also a Director of Brownstone Resources Ltd., Mega Silver Inc. (CVE:MSR.V) and Glenthorne Enterprises Ltd. (CVE:GLT.P), and of Mega Uranium Ltd. (TSX:MGA). Mr. Sweatman was the Chief Financial Officer and is now V.P. Business Accountant of Run of the River Power Inc. (CVE:ROR), and CFO of Marifil Mines Limited (CVE:MFM). From October, 1999 to June, 2001, Mr. Sweatman was a Director of RAT International Marketing Ltd., from June, 1999 to May, 2001, and a Director of Octagon Industries Inc., and from November, 2000 to September, 2001, he was Vice-President, Finance and the Secretary of Return Assured Incorporated.

Cheng Guan Loo – Director

Mr. Loo is founder and managing director of Blue Ocean Capital Partners Pte Ltd, a boutique corporate finance firm located in Singapore with offices in Shanghai and Dubai since November, 2005. Prior to that, Mr. Loo had been Senior Vice President at Mitsubishi-UFJ Securities, from July, 2003 to November, 2005, a merchant banking subsidiary of MUFG in Singapore. He was also a principal of Advent International Corporation, from July, 1999 to November, 2002. Advent International is a private equity firm head quartered in Boston with offices in Europe and Asia. In addition, he was a deputy managing director of Nomura Securities’ operation in Malaysia, from May, 1996 to November, 1998.

Mr. Loo has a varied professional career, straddling various practices from strategy consulting to investment banking to private equity before founding Blue Ocean Capital Partners where he has advised clients on cross-border merger and acquisition transactions and investments in the United States, United Kingdom, United Arab Emirates, Vietnam and China. Mr. Loo received an honours degree in Economics and Politics in 1989 and a Masters in Business Administration in 1991 from Monash University, Australia.

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