Blackbird Energy Purchases Assets In Southeast Saskatchewan
To acquire certain oil and gas assets comprised of 1,280 acres located in Bromhead in southeast Saskatchewan.
Blackbird Energy Inc. (TSXV: BBI) entered agreements to acquire certain oil and gas assets through its wholly owned subsidiary, Ruger Energy Inc., for $52,000 in cash.
The vendor of the assets, which consist of two sections of petroleum and natural gas rights comprising a total of 1,280 acres located in Bromhead in South East Saskatchewan, is Weyburn Energy Ltd.
The acquisition will provide Blackbird with a 100% working interest in two sections at an average cost of $26,000 per section, subject to a 6% non-convertible gross overriding royalty with a maximum of 25% deductions in favour of the Vendor and a 2% gross overriding royalty in favour of Ralco Ventures. The acquisition is expected to close on Oct. 1.
"The Bromhead Project is located two miles west of an existing Midale oil pool that has produced in excess of 2.3 million barrels of light oil and south of the Weyburn Field that has produced approximately one billion barrels of light oil. The Blackbird team once again is focused on establishing the Midale oil play through two low cost re-entries, with each re-entry currently estimated to cost $250,000 to re-enter, complete and equip," Garth Braun, Blackbird president and CEO, said in the release.
Blackbird Energy Inc. is an independent energy company engaged in the acquisition, exploration, and development of crude oil and natural gas assets in North America. The company is based in Vancouver, B.C.