Mr. Garth Braun reports

BLACKBIRD ENERGY ANNOUNCES TWO SIGNIFICANT CONDENSATE AND LIQUIDS-RICH GAS DISCOVERIES AT ELMWORTH

Blackbird Energy Inc.'s first two operated horizontal Montney wells, which are located at 06-26-70-07-W6 and 05-26-70-07W6 on Blackbird's 69-section land block at Elmworth, Alta., have been successfully completed and tested. The 06-26 and 05-26 wells were drilled into the Middle Montney and Upper Montney intervals respectively, and both wells represent significant condensate and liquids-rich gas discoveries for Blackbird. Blackbird is operator and has a 100-per-cent working interest in both wells and its lands at Elmworth.

The 06-26 well, which targeted the Middle Montney interval, was drilled to a total measured depth of 4,734 metres, including a horizontal lateral of 2,052 metres. The well was stimulated with a 14-stage slick-water plug-and-perf completion with three to five perforations per stage, for a total of 51 intervals, and approximately 55 tonnes of proppant per interval. A total of 15,500 cubic metres (approximately 97,500 barrels) of slick water was pumped downhole. The 06-26 well flowed on cleanup, recovering approximately 21.7 per cent of its load fluid prior to being shut in.

The 06-26 well was tested for 72 hours with a significantly restricted bottom hole choke (15/64ths inch) due to infrastructure constraints, which Blackbird plans to mitigate over the course of 2015. Over the final 48-hour test period, the well was flowing up tubing with a flowing tubing pressure of 3,451 kilopascals (501 pounds per square inch) and a bottom-hole flowing pressure of 19,440 kilopascals (2,820 pounds per square inch) at a rate of approximately 407 barrels of oil equivalent per day (44 per cent liquids), including 1.36 million cubic feet per day of natural gas, 133 barrels per day of 50-degree-API condensate and an estimated 47 barrels per day of plant recoverable natural gas liquids, for a total liquids to gas ratio of 133 barrels per million cubic feet. During the 48-hour test, the well returned approximately 717 barrels per day of load fluid, as the well is still cleaning up.

As is industry practice, the well is now shut in to allow for the reservoir to imbibe load fluids and to gather further pressure data. Further testing is planned following breakup to help evaluate the well's potential.

The 05-26 well, which targeted the Upper Montney interval, was drilled to a total measured depth of 4,621 metres, including a horizontal lateral of 1,951 metres. The well was stimulated with a 13-stage slick-water plug-and-perf completion, which included three to five perforations per stage, for a total of 49 intervals, and approximately 55 tonnes of proppant per interval. A total of 13,800 cubic metres (approximately 86,800 barrels) of slick water was pumped downhole. The 05-26 well flowed on cleanup, recovering approximately 32.3 per cent of its load fluid.

The 05-26 well was tested for 64 hours. Over the final 48 hours of the test period, the well was flowing up tubing with a flowing tubing pressure of 2,100 kilopascals (305 pounds per square inch) at a rate of approximately 466 barrels of oil equivalent per day (67 per cent liquids), including 900,000 cubic feet per day of natural gas, 281 barrels per day of 46-degree-API condensate and an estimated 32 barrels per day of plant recoverable natural gas liquids (total liquids to gas ratio of 341 barrels per million cubic feet). During the test, the well returned approximately 1,077 barrels per day of load fluid, as the well is still cleaning up. As is industry practice, the well is now shut in to allow for the reservoir to imbibe load fluids and to gather further pressure data. Further testing is planned following breakup to help evaluate the well's potential.

                SUMMARY OF THE 06-26 AND 05-26 TEST RESULTS 

                                                        Total              
               Flowing                    Liquid     combined   Liquids/gas
              pressure    Raw gas   hydrocarbons   production      ratio (2)
Well          (1) (kPa)   (mmcf/d)    (2) (bbl/d)      (boe/d)    (bbl/mmcf)

5-26             2,100        0.9            313          466           341
6-26 (3)        19,440       1.36            181          407           133
(restricted)   (bottom-                                                    
                  hole)                                                    
Notes:                                                                     
1) Bottom-hole pressure for 6-26 due to 15/64ths-inch downhole choke         
2) Liquid hydrocarbons includes free condensate plus estimated NGL recovery
(35 barrels per million cubic feet)
3) Restricted through 15/64ths-inch downhole choke                            

Garth Braun, chairman, chief executive officer and president of Blackbird, stated: "Our team, which has more than 100 years of combined technical experience, including considerable Montney experience, is highly encouraged by the condensate and liquids-rich gas discoveries demonstrated by the tests of our inaugural Middle and Upper Montney wells which were drilled on time and budget. The slick-water completion program that was implemented, may not demonstrate the highest short-term test rates prior to load recovery, but we believe will ultimately result in the highest rate of return and production over the life of the well. We are optimistic that further testing following breakup will allow for a more fulsome cleanup of the load fluid, and will ultimately demonstrate an increased presence of both condensate and liquids-rich gas, particularly given the overpressured nature of the Middle and Upper Montney reservoirs discovered at our Elmworth project. Based on these results, it is our plan to continue forward with the aggressive delineation and development of our Elmworth project, beginning with the design and construction of a battery, which we anticipate will allow for tie-in by the first quarter of 2016."

We seek Safe Harbor.