Credit to carswell post of Energy Summary today
Back in Canada, would-be Alberta Montney producer Blackbird Energy Inc. (BBI) was unchanged at 23 cents on 1.64 million shares, taking a pause from the rapid rise that has seen it nearly double from 12.5 cents over the last four weeks. President and CEO Garth Braun has been promoting the company while on a marketing trip to Toronto. He has also just published an on-line letter to investors about "why Blackbird is exceptional!" The main reason, as the 13-page letter spells out in detail, is the company's Elmworth project in the Montney. Mr. Braun points to the nearby EnCana Corp.'s (ECA: $10.83) Montney success, as well as recent acquisitions elsewhere in the Montney by Seven Generations Energy Ltd. (VII: $27.62) and Birchcliff Energy Ltd. (BIR: $8.64), as evidence that Blackbird is in the right play. EnCana's results in particular are "enough to put a smile on any investor's face," claims Mr. Braun. Blackbird is, of course, at a much earlier stage than EnCana, having drilled just three Montney wells so far, but a fourth is going to be drilled soon -- specifically in late August or early September, according to Mr. Braun's letter. (Blackbird had said October in a recent SEDAR filing, but is apparently keen to get going. Another pleasing revision is that the well is now expected to cost around $5.5-million instead of $7.25-million.) Mr. Braun predicts that Blackbird will officially become a Montney producer in the fourth quarter. That is "our value inflection point," as he calls it, meaning the point at which Blackbird should be able to self-finance future development. Its development up until that point is being financed by a $28.77-million offering that closed in May and comprised units and flow-through shares issued at 15 cents. The offering boosted Blackbird's share count to nearly 550 million from about 358 million, but participants are already up nicely on their investment, with the stock closing today at 23 cents.