Gas Shows Identified at Blackbird's Montney HZ Well

Blackbird Energy Inc. provided an operations update on its Bigstone Montney high natural gas liquids resource play. The Donnybrook Energy Bigstone Hz 15-32-60-22 W5M well (25 percent working interest to Blackbird) encountered 9,003 feet (2,744 meters) of high quality Montney reservoir with strong gas shows and excellent penetration rates. The reservoir encountered is comparable to the Montney interval that was successfully completed in Blackbird's first Bigstone Montney well, Donnybrook et al 14-29-60-22w5, which was the 1200m Hz Bigstone Montney discovery well that tested 4.3mmcf/d and 295 barrels of NGL's (1,011 barrels of oil equivalent per day). The reservoir quality encountered while drilling the 15-32 well proves the play and reservoir quality of the Montney at Bigstone extends at least as far north as the northern boundary of Blackbird's 1,792 ha 7 section (448 ha 1.75section net) contiguous land interests.

The 15-32 well is currently flowing natural gas, natural gas liquids and hydraulic fracture fluids undergoing clean up operations after completion of the 23 stage hydraulic fracture operation. During the hydraulic fracture operation 460 tons of fracture propant and fluids were placed. However, mechanical complications were encountered that have limited the number of stages that the operator can definitively say were successful. The final 5 stages were clearly successfully completed with 120 tons of propant and fracture fluids placed. At this time the operator is preparing to put production tubing in place and continue to flow the well. The flow rates for the 15-32 well will be released once the well has had further time to clean up and the rates are stabilized.

An industry competitor has drilled a 9,055 feet (2,760 meters) extended reach Hz well offsetting Blackbird's lands 800m to the west and parallel to Blackbird's 14-29 well. This well terminated 200m south of Blackbird's Section 31 and 656 feet (200 meters) west of the NW corner of section 29. The operator of the well reported a final 24 hour test rate after a 4 day flow period of 12.5mmcf/d with 770 barrels of condensate per day and expects to yield a further 30-35 bbls per mmcf of natural gas liquids that will be recovered from a shallow cut processing facility. This well is a strong indication of the productivity of the Montney reservoir at Bigstone and indicates the reservoir continues to the west and northwest onto Blackbird interest lands.

Donnybrook has informed Blackbird that surveys have been completed and contracts are in place to construct a 1.5 mile pipeline to tie in the 14-29 and 15-32 wells. Both wells were drilled from the same surface location and will be tied into the pipeline and shared surface facilities. Field construction operations for the pipeline are expected to commence in mid-February with all facilities ready for production to start by April 1st.

Donnybrook is currently waiting on surface approval to commence construction of 2 drilling pads that will facilitate the drilling of up to 6 more wells. Surveys have been completed for 5 of these development locations. Construction of the first surface lease is expected to be complete by mid-February and Donnybrook has informed Blackbird they have located a rig suitable to commence drilling the next well as soon as the third week in February. Donnybrook anticipates this well will be drilled from a surface location at 4-28-60-22w5.

Garth Braun, CEO of Blackbird Energy Inc. stated, "The mechanical issues we have encountered with the 15-32 well have raised some technical issues. However, Blackbird is very confident about the quality of the reservoir the 15-32 well has encountered and looks forward to receiving results from the production test and placing the well on production. We are continuing to move ahead in the field with operations to tie in both the 15-32 and 14-29 wells, and are preparing to drill a third well on this exciting prospect."