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National Bank Financial has updated coverage on Blackbird Energy (TSXV: BBI)

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Following the company’s release of its annual financial statements and reserves information, analyst Brent Legate reiterated his outperform rating and price target of $0.70, a premium of 91% to the $0.37 price on November 20th, the day the report was issued.

Additional Information:

Company: Blackbird Energy
Website: http://www.blackbirdenergyinc.com/s/Home.asp
Stock Symbol: TSXV: BBI
Date Published: Nov 26, 2014
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for InvestmentPitch.com

National Bank Financial has updated coverage on Blackbird Energy, symbol BBI on the TSX Venture Exchange.

Following the company’s release of its annual financial statements and reserves information, analyst Brent Legate reiterated his outperform rating and price target of $0.70, a premium of 91% to the $0.37 price on November 20th, the day the report was issued.

Blackbird Energy is an emerging Canadian exploration and production company focused on the highly prospective liquids rich Montney natural gas resource in Alberta.

Blackbird has a working interest in 127 net sections of Montney rights in Northern Alberta with plans to continue to expand its land base.

Following Blackbird’s recent opportunistic 10 section acquisition, for an estimated $300,000 per section, National Bank sees the potential for the company to complete similar acquisitions to further expand its contiguous 46 sections.

The company reported 2P reserves of 3,216 million barrels of oil equivalent; of which 2,259 mboe are associated with the recently disposed Bigstone asset.

National Bank estimates the current 2P reserves at 57 mboe.

Blackbird does not have any production from its east Elmworth property; however, recent industry drilling results are supportive of the resource potential on Blackbird’s land.

Analyst Brent Legate stated: “Based on our analysis of industry activity across the over pressured, liquids-rich Montney trend offsetting Blackbird’s Elmworth property, we see the potential for the liquids-rich Montney trend to extend into Blackbird’s land base. In the event both the Upper and Middle Montney are prospective on Blackbird’s East Elmworth land, we see an unrisked value of approximately $3.00 per share, including the 46 sections at Elmworth.”

This was based on a bluesky inventory of 169 Middle Montney wells and 181 Upper Montney wells with a 20-year development horizon.

Blackbird remains well capitalized at calendar year end with approximately $20 million in cash following the drilling of two Montney wells plus associated infrastructure.

The company recently announced a non-brokered private placement of approximately 11 million flow-through shares (Shelley – show 11,111,200) at a price of $0.45 adding another $5 million in gross proceeds to the treasury.

The company is led by Garth Braun, who has a well-rounded background in oil and gas, finance and real estate.

The company currently trades at $0.37, below the $0.70 target price, and with 342 million shares outstanding, the company is capitalized at $127 million.

For more information, please visit the company’s website www.blackbirdenergyinc.com or contact Joshua Mann, VP Business Development at 403-390-2144 or email josh@blackbirdenergyinc.com.

Investor relations is handled by Scott Koyich of Brisco Capital Partners, who can be reached at 403-619-2200 or by email at skoyich@briscocapital.com.

For more information about National Bank Financial or to obtain a copy of their research report, contact your nearest National Bank Financial office. Their branches are listed on their website at www.nbf.ca.

I’m Samantha Deutscher for InvestmentPitch.com
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