Blackbird Energy to Spud Mantario HZ Well

Blackbird Energy Inc. announced that it plans to spud its first horizontal well at its Mantario Oil Project in the second quarter of 2014, subject to weather and rig availability. The well will be spud from a surface location at 16-1-26-25W3 with a horizontal lateral length of 2,625 feet (800 meters). The trajectory of the horizontal well has been established using Blackbird's proprietary high resolution 3D seismic and the Company's existing well control. Blackbird holds a 70- percent operated working interest in the project.

This planned horizontal well is the follow-up to the successful A15-6-26-24W3 (A15-6) discovery well that encountered a 66-foot (20-meter) pay section and is still producing in excess of 20 barrels per day with minimal water.

Blackbird is close to completing a detailed exploitation study of the Mantario Oil Project which would encompass approximately 15 Hz locations with 80 acre spacing. Downspacing to 40 acres would allow for an additional 15 Hz locations. In addition to downspacing, the Company is evaluating secondary recovery methods to improve the overall recovery factors for the pool.

The cost of the horizontal well at the Mantario Oil Project is expected to be less than $1,000,000 including drilling, completion, equipping and installing surface facilities, and would qualify for the exceptional 2.5 percent royalty incentive currently received in Saskatchewan for drilling a horizontal well.


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