Blackbird Energy Update
Dear Katusa's Resource Opportunities Member,
HOLD
—This company update wasn’t good, it was great!
I’ll explain below why, but first I want to address why the company is a hold in our portfolio. I only tell my subscribers to buy shares at a price I am willing to buy shares at. That’s the fairest way in my opinion. I bought so much stock under CAD$0.45, that I am comfortable with my position (and frankly don’t need to buy any more), and I believe now the larger institutional funds will start buying the shares in the company. Blackbird has made a few significant announcements in one press release this morning. I must say, it was more than I expected and I am pleasantly surprised. The drilling was under budget and at over 20% cheaper than its last well (the third well drilled by BBI) which was less than a year ago, and over 100% cheaper from its first Montney well. All 76 stages of the frac went well. The flow rates of the well have not been tested, but it appears this well will be a significant as the management have decided to fast track further well development, so clearly they like what they have seen.
The construction of the Facility and Gathering System should be done by early 2017, and will have four wells connected and producing by early 2017.
The biggest surprise of the update was which was also a major positive is that BBI was able to permit two new wells, one spudding later this month and another in December. It’s quite obvious that management really like what it saw in its testing to advance the drilling as fast as it has. This isn’t just going well,
it’s going very well
. BBI has exceeded all of my expectations. This aggressive strategy is very promising and will position BBI to benefit greatly in 2017.
Another important takeaway from the press release is that Stage Completions, which BBI owns 10% of, has proven its technology. I have no doubt that this is a game changer technology and as this was a make it or break it well, it passed with flying colors. BBI has exceeded my already very high expectations.
I believe the stock is going higher.
This portfolio update is also posted in the Members Area.
to login and view it.
Regards,
Marin Katusa