tsx-v: bbi february 2018 - blackbird energy inc · blackbird market conditions life cycle blackbird...

February 2018TSX-V: BBI

MARKET CONDITIONSBLACKBIRDLIFE CYCLE

BLACKBIRD VALUEPROPOSITION

LARGE, CONTIGUOUS LAND BLOCK134 GROSS SECTIONS

EGRESS AND MARKET ACCESS

DELINEATEDDRILLING SUCCESS

CASH ON HAND

≈$21.3 MM(1)

Alberta Jurisdiction

Operating History

SocialLicense

Area Activity

= Primary value drivers

= Secondary value drivers

A Confluence of Positive Factors

TSX-V: BBI2Notes: (1) Working capital surplus as at October 31, 2017.

Industry Activity is Exploding in the Pipestone Corridor

• Seven Generations acquisition of Paramount Kakwa

– Sets a new high for undeveloped Montney land at $6.1 MM persection

• Paramount acquisition of Apache

– Transaction provides benchmark for Montney land value in theregion

– Anticipated POU drilling will delineate the liquids rich corridor

– Plans for >300 well drilling program with growth potential to76,000 boe/d (>30% condensate)

Blackbird Pipestone – One of the Most Actively Drilled Corridors in Canada

All Eyes on the Pipestone CorridorThe Highest Value Montney A&D Directly Offsets Blackbird

• Industry plans a major infrastructure investment at Pipestonethrough 2020

– Five sour processing facilities & various condensate pipelinesalready sanctioned or in FEED stages

– E&P’s require scale to strike a long term take-or-pay withmidstreamers – consolidation is upcoming

• NuVista plans >120 wells on 11 sections three miles west of Blackbird– stacked pay boosts full-cycle economics

• Encana’s “Cube” development reduces costs and improveseconomic recovery factors

– The Cube “will become the industry standard for stacked paydevelopment”, Doug Suttles, Encana, Pres. & CEO

Paramount’s acquisition of Apache Montney lands

Velvet’s 13-15-70-4W6 well, confirms the volatile oil window is prospective, validating all of

Blackbird’s lands

Pipestone has been actively licensing and spudding wells

Five (1.2 net) non-operated Blackbird wells extend the fairway to the east

New Blackbird drill to the north will validate the northern Wapiti lands

TSX-V: BBI3

Eastern Gathering System

3-27 New Drill

14-30 Joint Interest

02/2-20 Re-completion

13-4 Joint Interest

15-21 Re-completion

2-20 Re-completion

2-28 New Drill

TSX-V: BBI4

The Pipestone Corridor – Escalating Activity

Notes: (1) Public data from IHS AccuMap; (2) NuVista September 2017 Corporate Presentation (3) Kelt press release October 6, 2017 (4) See notes on initial production results on page 10 of this presentation.

CNRL 12-2550 Bbls/MMcf

Pipestone 5-26222 Bbls/MMcf (1)

Pipestone6 drilled

NuVista 13-27 >100 Bbls/MMcf(2)

6 MMcf/d and 600 bbls/d of condensate over final 24

hours of test

Pipestone 13-22 Upper,72 hr Test 3.6 MMcf/d &

1000 Bbls condensate/day(1)

CNRL 13-7, Middle299 Bbls/MMcf, (1)

15-11 & 4-28 Montney Hz Drilled

Kelt 04-01(3)

1,567 boe/d (64% oil, 20% NGLs and 16% gas) over a 5 day test

BBI 2-28, MiddlePeak 48hr rate 721 boe/d (CGR

251 bbls/mmcf) (4)

Shell >60 Montney Hz Licenced

>40 Drilled Mid Montney 15-12-67-5W6

IP 180: CGR Avg 227 Bbls/MMcf @ 2.5 MMcf/d

15-21

BBI 15-21, UpperPeak 48hr rate 729 boe/d (CGR

257 bbls/mmcf) (4)

02/6-26

2-28

BBI 1-20, Upper48hr test rate 1,054 boe/d (CGR

192 bbls/mmcf) (4)

BBI 02/6-26, UpperPeak 48hr rate 924 boe/d (CGR

591 bbls/mmcf)(4)

1-20 2-20

BBI 2-20, Middle72hr test rate 1,163 boe/d (CGR

454 bbls/mmcf) (4)

BBI Mapping of Upper Montney Condensate Corridor (2)

The Pipestone Liquids-Rich Corridor

Encana’s Mapping of Liquids-Rich Corridor (1)

BBI Mapping of Middle Montney Condensate Corridor (2)

Source: (1) Encana May 17, 2016 Montney Investor Event Presentation (slide 49); (2) Internal mapping by Blackbird; Represents analogous information. See “Analogous Information” in Advisories.

TSX-V: BBI5

~60 sections in Encana’s Super

Condensate Corridor (2)

00/06-17-070-05W6/0RR: 1981-09-23

FormTD: IRTN

Fluid: Gas

CEQUEL GOLDCK 6-17-70-5

Mode: Abd Zone

TD: 3651.0 m [TVD]

KB: 653.1 m

2125

2150

2175

2200

2225

2250

2275

2300

2325

2350

2125

2150

2175

2200

2225

2250

2275

2300

2325

2350

CEMBRP

JET

ACIDSQ

2100

( -1446.9 )

2125

( -1471.9 )

2150

( -1496.9 )

2175

( -1521.9 )

2200

( -1546.9 )

2225

( -1571.9 )

2250

( -1596.9 )

2275

( -1621.9 )

2300

( -1646.9 )

2325

( -1671.9 )

2350

( -1696.9 )

00/08-25-070-07W6/0RR: 1996-11-30

FormTD: BLLY

Fluid: N/A

AECOG (W) ELMWORTH 8-25-70-7

Mode: Abnd

TD: 2462.0 m [TVD]

KB: 670.9 m

2200

2225

2250

2275

2300

2325

2350

2375

2400

2425

2200

2225

2250

2275

2300

2325

2350

2375

2400

2425

2200

( -1529.1 )

2225

( -1554.1 )

2250

( -1579.1 )

2275

( -1604.1 )

2300

( -1629.1 )

2325

( -1654.1 )

2350

( -1679.1 )

2375

( -1704.1 )

2400

( -1729.1 )

2425

( -1754.1 )

00/11-02-071-08W6/0RR: 1998-01-24

FormTD: BLLY

Fluid: Gas

ECA ELM 11-2-71-8

Mode: Susp

TD: 2550.0 m [TVD]

KB: 694.7 m

2275

2300

2325

2350

2375

2400

2425

2450

2475

2500

2525

2275

2300

2325

2350

2375

2400

2425

2450

2475

2500

2525

2275

( -1580.3 )

2300

( -1605.3 )

2325

( -1630.3 )

2350

( -1655.3 )

2375

( -1680.3 )

2400

( -1705.3 )

2425

( -1730.3 )

2450

( -1755.3 )

2475

( -1780.3 )

2500

( -1805.3 )

2525

( -1830.3 )

02/01-03-072-09W6/0RR: 2011-03-30

FormTD: BLLY

Fluid: N/A

CNRL ALBRT 1-3-72-9

Mode: Abd Zone

TD: 2743.4 m [TVD]

KB: 831.5 m

2475

2500

2525

2550

2575

2600

2625

2650

2675

2700

2475

2500

2525

2550

2575

2600

2625

2650

2675

2700

CEMBRP

PACKER

JET

ACIDSQACIDSQ

2475

( -1643.5 )

2500

( -1668.5 )

2525

( -1693.5 )

2550

( -1718.5 )

2575

( -1743.5 )

2600

( -1768.5 )

2625

( -1793.5 )

2650

( -1818.5 )

2675

( -1843.5 )

2700

( -1868.5 )

02/10-08-070-07W6/0RR: 2015-10-26

FormTD: MNTN

Fluid: N/A

BLACKBIRD ELM 10-8-70-7

Mode: Abd Whip

TD: 2586.5 m [TVD]

KB: 684.6 m

2325

2350

2375

2400

2425

2450

2475

2500

2525

2550

2575

2325

2350

2375

2400

2425

2450

2475

2500

2525

2550

2575

2325

( -1640.4 )

2350

( -1665.4 )

2375

( -1690.4 )

2400

( -1715.4 )

2425

( -1740.4 )

2450

( -1765.4 )

2475

( -1790.4 )

2500

( -1815.4 )

2525

( -1840.4 )

2550

( -1865.4 )

2575

( -1890.4 )

W E

12-25 Hz

14-30 Hz

02/2-20 Hz

2-20 Hz

6-26 Hz

02/6-26 Hz

3-17 Hz

CNRL 12-25

ECA 14-30

BBI 02/2-20

BBI 2-20

BBI 02/6-26

BBI 6-26

Non-operated 3-17

1 2 3 4 5

W

E

1

2

3

45Consistent geology across

multiple intervals

Do

igU

pp

er

Mo

ntn

ey

Mid

dle

M

on

tne

yLo

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r M

on

tne

yB

ello

y

Note: Sourced from Accumap. TSX-V: BBI6

The Pipestone Liquids-Rich Corridor2

00

met

ers

Blackbird’s Pipestone Resource

10.25 sections booked

(9.0% of land booked)

1P Reserves: 28,578 mboe

1P NPV10: $167 million

16.5 sections booked

(14.4% of land booked)

2P Reserves: 54,373 mboe

2P NPV10: $395 million

Reserves Booked in Only Two of Four Highly Prospective Intervals

Note: From Blackbird’s July 31, 2017 reserve report prepared by Blackbird’s independent reserves evaluator, McDaniel and Associates Consultants Ltd.

TSX-V: BBI7

Blackbird’s Lands with Proved + Probable Reserves Booked

Blackbird’s Lands with Proved Reserves Booked

8 TSX-V: BBI

Development and Delineation Program

21

5

34 8

67

10

14

11

13

159

16

Eastern Multi-Interval Delineation Block

Western Development Block

BBI Producing Wells

BBI Active Operations

BBI Proposed Locations

12

Northern Multi-Interval Delineation Block

Producing Wells6-26-70-7W6 (Middle)Tied-in/producing

5-26-70-7W6 (Upper)Tied-in/producing

2-20-70-7W6 (Middle)Tied-in/producing

102/2-20-70-7W6 (Upper)Tied-in/producing (recompletion)

02/6-26-70-7W6 (Upper)Tied-in/producing

15-21-70-7W6 (Upper)Tied-in/producing (recompletion)

2-28-70-7W6 (Middle)Tied-in/producing

1-20-70-7W6 (Upper)Tied-in/producing

2-20-70-6W6 (Middle)Tested; tie-in pending

Active Operations3-27-71-7W6 (Upper)Test results before the end of March

14-30-70-7W6 (Upper)Non-op: drilled, completed, tested

13-04-70-6W6 (Middle)Non-op: drilled, completed, tested



13-13-70-6W6 (Middle)Non-op; drilled, completed, tested

1-06-70-5W6 (Middle)Non-op; drilled, completed, tested

1

2

3

4

6

9

7

8

14

15

16

5

10

11

12

13

March Test

TSX-V: BBI9

Current Well Summary

WellOperated or Non-

Operated

Working

Interest

(%)

Montney

Interval

Measured

Depth

(meters)

Lateral

Length

(meters)

Number

of

Intervals

Proppant

(tonnes)Status

6-26-70-7W6 Operated 100 Middle 4,734 2,052 51 2,805 Tied-in / producing

5-26-70-7W6 Operated 100 Upper 4,621 1,951 49 2,695 Tied-in / producing


102/2-20-70-7W6 Operated 100 Upper 4,598 2,049 33 1,650 Tied-in / producing

02/6-26-70-7W6 Operated 100 Upper 4,808 2,103 42 3,193 Tied-in / producing




2-20-70-6W6 Operated 100 Middle 4,885 2,256 36 4,008 Tested; tie-in pending

3-27-71-7W6 Operated 100 Upper 4,604 2,200 59 4,500 Test results before the end of March

14-30-70-7W6 Non-Operated 17.9 Upper 5,350 2,861 95 5,053 Drilled, completed and tested

13-04-70-6W6 Non-Operated 37.5 Middle 5,615 3,056 75 3,682 Drilled, completed and tested

3-17-70-5W6 Non-Operated 20 Middle 5,320 2,876 75 3,605 Drilled, completed and tested




1

2

3

4

6

9

5

14

7

15

16

13

8

10

12

11

0

200

400

600

800

1,000

1,200

1,400

02/6-26-70-7W6*(Upper Montney)

2-28-70-7W6*(Middle Montney)

15-21-70-7W6*(Upper Montney)

1-20-70-7W6**(Upper Montney)

2-20-70-6W6***(Middle Montney)

Pro

du

ctio

n (

bo

e/d

)

Recent Test Results(1)(2)(3)(4)

Natural Gas (boe/d) NGLs (bbl/d) Condensate (bbl/d)

10 TSX-V: BBI

Recent IP30 and Test Results

IP30(1)(2)(3)(4)

WellCondensate

(bbl/d)Natural Gas

(mcf/d)NGLs (bbl/d)

CGR(5)

(bbls/mmcf)Total (boe/d)

% Load Water Recovered(6)

Lateral Length (meters)

02/6-26-70-7W6 (Upper Montney)

475 1,076 20 460 674 37% 2,103

2-28-70-7W6 (Middle Montney)

300 1,881 24 172 636 24% 1,977

15-21-70-7W6 (Upper Montney)

289 1,424 18 216 543 14% 1,300

Notes: The Company cautions that short-term test rates are not necessarily indicative of long-term well or reservoir performance or of ultimate recovery. See "Short Term Test Rates" at the end of this presentation. (1) Production from these wells has been restricted at times due to third party processing capacity limitations and water injection limitations; (2) Numbers may not add due to rounding; (3) All disclosed production rates and volumes are presented net of any load water; (4) All volumes are based on field estimated production data; (5) CGR includes condensate and NGL production; (6) Load water is not included in any of the other volumes reported; *Represents peak 48 hour rate over initial 30 days on production; **Represents production over the final 48 hours over an 11 day test; *** Represents production over the final 72 hours of an 10 day production test.

591 bbls/mmcf(5)

251 bbls/mmcf(5) 257 bbls/mmcf(5)

454 bbls/mmcf(5)

192 bbls/mmcf(5)

SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY

Development

02/2-20On-Stream

15-21Recompleted and On-Stream

2-20-70-6W6Recompletion

New/enhancedGHA(s)

02/6-26Completed and On-Stream

02-28Completed and On-Stream

01-20Completion

Five additional sour gas processing facilities and/or expansions planned

INCREASING CORRIDOR MOMENTUM

Significant industry well activity

Reinforces the teams innovative approach Multiple binding Gas Handling Agreements

Moving Forward with a Clear Path

20

17/2

018

3-27Completion

Commercialization of Stage

TSX-V: BBI11

Test results expected Mar 2018

12 TSX-V: BBI

Tidewater Agreement Sets the Stage for Future Growth

Long Term Growth

Lower Cost Producer

Enhanced Liquids Value

Strategic Fit

Five year term with option to extend; provides long term processing solution for both north and

south of the Wapiti River

Deep cut capability will allow Blackbird to obtain premium pricing for ethane, propane and all

NGLs

Blackbird has the option to acquire up to a 20% working interest in the facility, which would

significantly reduce processing fee’s enabling Blackbird to become a lower cost producer

Provides solution for processing, sweet gas storage and fuel gas needs; both companies

have significant business interest in the Grande Prairie area

0

5

10

15

20

25

30

35

Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1

2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3

Pro

cess

ing

Cap

acit

y (m

mcf

/d)

Expected on-stream date of Q2 2019

0

1,000

2,000

3,000

4,000

5,000

0 5 10 15 20 25 30 35 40 45 50

Me

ters

Days

Blackbird Days vs. Depth

Consistent Decrease in Drill times

TSX-V: BBI13

6-26 in 46.3 Days

46.3 to 17.5 days (62% improvement)

6-26 in 46.3 Days

3-27 in 17.5 Days

Completion Program #1

(5-26 and 6-26)Plug & perf cluster

Slickwater~2,700 tonnes of

proppant1.4 tonnes / meter of

proppant40 meter cluster spacing

Completion Program #2

(2-20)Sliding Sleeve

CO2 (largest in N.A.)~2,223 tonnes of proppant

1.1 tonnes/ meter proppant

28.5 meter spacing

STAGE Generation Four

(3-27)

Sliding Sleeve

Slickwater

~4,500 tonnes of proppant

~2.0 tonnes / meter proppant

~37 meter spacing

20 Days 20 DaysSTAGE Completions Sliding Sleeve

Completion Optimization

Higher Tonnage + Reduced Pump Time = Increased EUR and NPV

TSX-V: BBI14

STAGE Generation Four 8620

(2-28)Sliding Sleeve

Slickwater~3,521 tonnes of proppant

1.8 tonnes/ meter proppant

40 meter spacing

6.5 Days

5.2 Days

2 years <1 year

D&C

$10mm $5.5mm

Innovation: Stage

↑NPV

↑EUR

Value Delineation Curve / Acceleration

Value

High Risk Time

Initial Production Ramp Up

BBI

BBI: 0 – 114.5 net sections

20 – 260 wells in corridor

CGR’s > 300 Bbls/MMcf (1)

The Next StepsHigh Impact

Development and Delineation

Program

Increased Processing / Take-

away

Production Growth Through Expanded Egress

Continued Land Aggregation

Pilot Plant10 mmcf/d

GHA with Tidewater

$84.8 mm Raised

Lower Risk

3 years Near - Term

$2 mm

$250 mm

Notes: (1) Based on regional test data.TSX-V: BBI15

• Corporate Social Responsibility is critical to gain social license to operate in any community

• Tree Planting Program: focused on reclaiming boreal forest and replacing trees we take down;

• Planted 101,579 trees to date!

• Thank you Cormark, Pareto, TD, BMO, Scotia, Laurentian, & Jett Capital for contributing towards the tree planting program

• Goal: 200,000 trees

• Movement to reduce flare volumes

• Reduction in water usage through technology

• Boring vs. cutlines

• Mitigation of traffic impact

• Extensive community consultation

• Noise mitigation

• Our plan gives us a significant competitive advantage as we develop our resource – this is also the right way to do business

Corporate Social Responsibility

TSX-V: BBI16

Common Share Trading Symbol TSX-V: BBI

Warrant Trading Symbol TSX-V: BBI.WT

Shares Basic

Fully Diluted

Insider Holdings (1)

Market Capitalization

52 Week Range (2/12/2018)

Share Price (2/12/2018) $0.31

~748 mm

~963 mm

~18%

~$232 mm

$0.295 - $0.73

Notes: (1) Includes shares owned in third party portfolio that is managed by board member. (2) Working capital surplus as at October 31, 2017.

Gross Acreage 134 sections

(85,760 acres)

Net Acreage 114.5 sections(73,280 acres)

Cash (2) ~$21 mm

Corporate Snapshot

TSX-V: BBI17

Appendix: IP 30, IP60, IP90

WellMontney Interval

Raw Gas(2)

Sales Gas(3) Condensate(3) NGLs(3)

Total Liquids(3)

Total Sales(3)

CGRC5+/Raw

(mmcf/d) (mmcf/d) (bbls/d) (bbls/d) (bbls/d) (boe/d) (bbls/mmcf)

5-26-70-7W6 Upper 1.37 1.31 293 19 312 530 214

2-20-70-7W6 Middle 2.15 1.85 274 21 295 604 127

102/2-20-70-7W6(4)Upper 0.58 0.49 69 6 75 157 119

6-26-70-7W6 Middle 0.68 0.59 111 9 120 218 163

IP30 RESULTS (1)

Notes:(1) First 720 hours of production excluding third party gas processing plant shut-downs of approximately 33 days and other periods where the wells were shut-in. (2) Based on field-estimated production data. (3) Based on actual sales data. (4) Based on camera run performed, management estimates that this well was producing through a limited number of stages due to mechanical issues experienced in the wellbore during completion operations. Management is unable to determine the number of producing stages. Management believes that these results may not be indicative of the well’s production potential.


Raw Gas(2)


Total Liquids(3)

Total Sales(3)

CGRC5+/Raw


5-26-70-7W6 Upper 1.17 1.09 224 19 243 425 191

2-20-70-7W6 Middle 2.59 2.31 254 28 282 667 98

6-26-70-7W6 Middle 0.54 0.47 121 9 130 208 225Notes:(1) First 1,440 hours of production excluding third party gas processing plant shut-downs of approximately 33 days and other periods where the wells were shut-in. (2) Based on field-estimated production data. (3) Based on actual sales data.

IP90 RESULTS (1)

IP60 RESULTS (1)


Raw Gas(2)


Total Liquids(3)

Total Sales(3)

CGRC5+/Raw


5-26-70-7W6 Upper 1.17 1.08 200 20 220 400 171

2-20-70-7W6 Middle 2.72 2.45 245 31 276 684 90

Notes:(1) First 2,160 hours of production excluding third party gas processing plant shut-downs of approximately 33 days and other periods where the wells were shut-in. (2) Based onfield-estimated production data. (3) Based on actual sales data.

TSX-V: BBI18

Forward‐Looking Statements or Information and Additional Advisories

Certain statements included in this presentation constitute forward-looking statements or forward-looking information under applicable securities legislation. Such forward-looking statements or information are provided for thepurpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as makinginvestment decisions. Forward-looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting futureoutcomes or statements regarding an outlook. Forward-looking statements or information concerning Blackbird Energy Inc. (“Blackbird” or the “Company”) in this presentation may include, but are not limited to, statements orinformation with respect to: guidance, forecasts, and related assumptions; the potential value of Blackbird's assets in the context of the current Paramount/Appache transaction; present and future industry activity in the PipestoneCorridor; the attributes and potential of the Montney; the number of prospective Montney intervals on Blackbird’s lands; Blackbird's valuation at one of the greatest discounts to its RENAV within the Montney peer group; expectedtype curves; capital spending and availability of cash; the cost reduction, and drilling and completion optimization derived from use of the Stage Completions Inc. Bowhead II technology and the other benefits of the Stage Completionsinvestment including priority access to the technology and growth potential of the minority interest investment; proposed processing options, commodity pricing; costs associated with operating in the oil and natural gas business;Blackbird's plans for a high impact delineation and development program, continued land aggregation, production growth through egress and increased processing and take-away; and the ability of Blackbird's corporate socialresponsibility initiatives to provide a significant competitive advantage. In addition, references to reserves and resources are deemed to be forward-looking information, as they involve the implied assessment, based on certainestimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated. Forward-looking statements or information are based on a number of factors and assumptions which have beenused to develop such statements and information but which may prove to be incorrect. Blackbird believes that the expectations reflected in such forward-looking statements or information are reasonable; however, undue relianceshould not be placed on forward-looking statements because Blackbird can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this presentation,assumptions have been made regarding, among other things: the impact of increasing competition; the timely receipt of any required regulatory approvals; the ability of Blackbird to retain and obtain qualified staff, equipment andservices in a timely and cost efficient manner; the ability of Blackbird to operate in a safe, efficient and effective manner; the ability of Blackbird to obtain financing on acceptable terms; the timing and costs of operating Blackbird'sbusiness; the ability of Blackbird to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters;and the ability of Blackbird to successfully market its oil and natural gas products. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used.

Forward‐looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from thoseanticipated by Blackbird and described in the forward‐looking statements or information. These risks and uncertainties may cause actual results to differ materially from the forward‐looking statements or information. Thematerial risk factors affecting Blackbird and its business are contained in Blackbird's Annual Information Form which is available at SEDAR at www.sedar.com. The forward‐looking statements or information contained in thispresentation are made as of the date hereof and Blackbird undertakes no obligation to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwiseunless required by applicable securities laws. The forward‐looking statements or information contained in this presentation are expressly qualified by this cautionary statement.

Additional Advisories

This presentation contains statistical data, market research and industry forecasts that were obtained from government or other industry publications and reports or based on estimates derived from such publications and reportsand management’s knowledge of, and experience in, the markets in which Blackbird operates. Government and industry publications and reports generally indicate that they have obtained their information from sourcesbelieved to be reliable, but do not guarantee the accuracy and completeness of their information. Often, such information is provided subject to specific terms and conditions limiting the liability of the provider, disclaiming anyresponsibility for such information, and/or limiting a third party’s ability to rely on such information. None of the authors of such publications and reports has provided any form of consultation, advice or counsel regarding anyaspect of, or is in any way whatsoever associated with, Blackbird. Further, certain of these organizations are advisors to participants in the Canadian oil and gas industry, and they may present information in a manner that is morefavourable to that industry than would be presented by an independent source. Actual outcomes may vary materially from those forecast in such reports or publications, and the prospect for material variation can be expected toincrease as the length of the forecast period increases. While management believes this data to be reliable, market and industry data is subject to variations and cannot be verified due to limits on the availability and reliability ofdata inputs, the voluntary nature of the data gathering process and other limitations and uncertainties inherent in any market or other survey. None of Blackbird nor its affiliates has independently verified any of the data fromthird party sources referred to in this presentation or ascertained the underlying assumptions relied upon by such sources.

The outlook and guidance in this presentation has been provided to assist investors in analyzing Blackbird's anticipated development strategies and prospects and it may not be appropriate for other purposes and actual resultscould differ from the guidance provided herein.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the information contained in this presentation.

Advisories

TSX-V: BBI19

Independent Reserves EvaluationEstimates of the Company's reserves and contingent resources and the net present value of future net revenue attributable to the Company's reserves and contingent resources as at July 31, 2017, are based upon the reports thatwere prepared by McDaniel & Associates Consultants Ltd. (“McDaniel”). The estimates of reserves and contingent resources provided in this document are estimates only and there is no guarantee that the estimated reserves orcontingent resources will be recovered. Actual reserves and contingent resources may be greater than or less than the estimates provided in this in this document, and the differences may be material. The estimates of reserves orcontingent resources and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation. Estimates of netpresent value of future net revenue attributable to the Company's reserves and contingent resources do not represent the fair market value of the Company's reserves and contingent resources and there is uncertainty that the netpresent value of future net revenue will be realized. There is no assurance that the forecast price and cost assumptions applied by McDaniel in evaluating Blackbird's reserves, contingent resources and prospective resources willbe attained and variances could be material. There is uncertainty that it will be commercially viable to produce any portion of the contingent resources that are described herein.

Note Regarding Oil and Gas MetricsBlackbird has adopted the standard of 6 Mcf:1 bbl when converting natural gas to boes. Condensate and other natural gas liquids (“NGLs”) are converted to boes at a ratio of 1 bbl:1 bbl. Boes may be misleading, particularly if usedin isolation. A boe conversion ratio of 6 Mcf:1 bbl is based roughly on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the Company's sales point.Given the value ratio based on the current price of oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf: 1 bbl, utilizing a conversion ratio at 6 Mcf: 1 bbl may be misleading as an indication ofvalue.

Oil and Gas DefinitionsTerms that are used in this news release that are not otherwise defined herein are provided below:

Low estimate contingent resources, referred to herein as 1C, is a classification of estimated resources described in the Canadian Oil and Gas Evaluation Handbook, which is considered to be the best estimate of the quantity thatwill actually be recovered. It is equally likely that the actual quantities recovered will be greater or less than the best estimate. Resources in the best estimate case have a 90% probability that the actual quantities recovered willequal or exceed the estimate.

Best estimate contingent resources, referred to herein as 2C, is a classification of estimated resources described in the Canadian Oil and Gas Evaluation Handbook, which is considered to be the best estimate of the quantity thatwill actually be recovered. It is equally likely that the actual quantities recovered will be greater or less than the best estimate. Resources in the best estimate case have a 50% probability that the actual quantities recovered willequal or exceed the estimate.

High estimate contingent resources, referred to herein as 3C, is a classification of estimated resources described in the Canadian Oil and Gas Evaluation Handbook, which is considered to be the best estimate of the quantity thatwill actually be recovered. It is equally likely that the actual quantities recovered will be greater or less than the best estimate. Resources in the best estimate case have a 10% probability that the actual quantities recovered willequal or exceed the estimate.

Contingent resources are the quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are notcurrently considered to be commercially recoverable due to one or more contingencies. Contingencies are conditions that must be satisfied for a portion of contingent resources to be classified as reserves that are: (a) specific tothe project being evaluated; and (b) expected to be resolved within a reasonable timeframe. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters or a lack of markets. It isalso appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. There is no certainty that it will be commercially viable to produce anyportion of the contingent resources or that Blackbird will produce any portion of the volumes currently classified as contingent resources. The estimates of contingent resources involve implied assessment, based on certainestimates and assumptions, that the resources described exists in the quantities predicted or estimated, as at a given date, and that the resources can be profitably produced in the future. The risked net present value of the futurenet revenue from the contingent resources does not represent the fair market value of the contingent resources. Actual contingent resources (and any volumes that may be reclassified as reserves) and future production therefrommay be greater than or less than the estimates provided herein.

Developed producing reserves are those gross reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut in, they must havepreviously been on production, and the date of resumption of production must be known with reasonable certainty.

Developed non-producing reserves are those reserves that either have not been on production, or have previously been on production, but are shut in, and the date of resumption of production is unknown.

Developed reserves are those gross reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure (for example, when comparedto the cost of drilling a well) to put the reserves on production. The developed category may be subdivided into producing and non-producing.

Gross means (i) in relation to the Company's interest in production or reserves, its "company gross reserves", which are the Company's working interest (operating or non-operating) share before deduction of royalties and withoutincluding any royalty interests of the Company; and (ii) in relation to wells, the total number of wells in which the Company has an interest.

Net means, in relation to the Company's interest in wells or lands, the number of wells obtained by aggregating the Company's working interest in each of its gross wells.

Advisories

TSX-V: BBI20

Probable reserves are those additional gross reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of theestimated proved plus probable reserves.

Proved reserves are those gross reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. In thispresentation, proved plus probable reserves are also referred to as 2P reserves.

Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on: (i) analysis of drilling, geological, geophysical andengineering data; (ii) the use of established technology; and (iii) specified economic conditions, which are generally accepted as being reasonable. Reserves are classified according to the degree of certainty associated with theestimates.

Undeveloped reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable ofproduction. They must fully meet the requirements of the reserves classification (proved, probable) to which they are assigned.

Analogous InformationCertain information in this document may constitute "analogous information" as defined in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("NI 51-101"), including, but not limited to, informationrelating to areas, wells and/or operations that are in geographical proximity to or on-trend with prospective lands held by Blackbird and production information related to wells that are believed to be on trend with Blackbird'sproperties. Such information has been obtained from government sources, regulatory agencies or other industry participants, each of which is independent of Blackbird. Management of Blackbird believes the information may berelevant to help define the reservoir characteristics in which Blackbird may hold an interest and such information has been presented to help demonstrate the basis for Blackbird's business plans and strategies.

However, to Blackbird’s knowledge, such analogous information has not been prepared in accordance with NI 51-101 and the Canadian Oil and Gas Evaluation Handbook and Blackbird is unable to confirm that the analogousinformation was prepared by a qualified reserves evaluator or auditor. Blackbird has no way of verifying the accuracy of such information. There is no certainty that the results of the analogous information or inferred thereby willbe achieved by Blackbird and such information should not be construed as an estimate of future production levels. Such information is also not an estimate of the reserves or resources attributable to lands held or to be held byBlackbird and there is no certainty that the reservoir data and economics information for the lands held or to be held by Blackbird will be similar to the information presented herein. The reader is cautioned that the data reliedupon by Blackbird may be in error and/or may not be analogous to such lands to be held by Blackbird.

Initial Production RatesAny references in this document to test rates, flow rates, initial and/or final raw test or production rates, early production, test volumes and/or "flush" production rates are useful in confirming the presence of hydrocarbons,however, such rates are not necessarily indicative of long-term performance or of ultimate recovery. Such rates may also include recovered "load" fluids used in well completion stimulation. Readers are cautioned not to placereliance on such rates in calculating the aggregate production for Blackbird. In addition, the Montney is an unconventional resource play which may be subject to high initial decline rates. Such rates may be estimated based onother third party estimates or limited data available at this time and are not determinative of the rates at which such wells will continue production and decline thereafter.

Short Term Test RatesThe Company cautions that short-term test rates are not necessarily indicative of long-term well or reservoir performance or of ultimate recovery. Such rates are preliminary in nature and may not be representative of stabilizedon-stream production rates. Actual results will differ from those realized during a short term measurement period, and the difference may be material. Production over a longer period will also experience natural decline rates,which can be high in the Montney play. Short-term test rates cannot be relied upon as providing assurance of longer term production.

Information Regarding Disclosure on ReservesThe reserve estimates contained herein are estimates only and there is no guarantee that the estimated reserves or resources will be recovered. Volumes of reserves have been presented based on a company interest basis whichincludes Blackbird's royalty interests without deducting royalties payable by the Company. The estimates of reserves for individual properties may not reflect the same confidence level as estimates of reserves for all properties,due to the effects of aggregation. Where discussed herein "NPV 10%" represents the net present value (net of capex) of net income discounted at 10%, with net income reflecting the indicated oil, liquids and natural gas prices andIP rate, less internal estimates of operating costs and royalties. It should not be assumed that the future net revenues estimated by Blackbird's independent reserve evaluators represent the fair market value of the reserves, norshould it be assumed that Blackbird's internally estimated value of its undeveloped land holdings or any estimates referred to herein from third parties represent the fair market value of the lands.

Advisories

TSX-V: BBI21

Blackbird Energy Inc.

Garth Braun – Chairman, CEO & PresidentTel: 403.699.9929 ext. 101

Cell: 403.500.5550Email: [email protected]

Blackbird Energy Inc.400, 444 5th Avenue SW

Calgary, Alberta T2P 2T8

TSX-V: BBI22

Allan Dixon – Business Development ManagerTel: 403.699.9929 ext. 103

Cell: 587.227.7206Email: [email protected]

tsx-v: bbi february 2018 - blackbird energy inc · blackbird market conditions life cycle blackbird...

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