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

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. The Company cautions that short-term test rates are not necessarily indicative of long-term well or reservoir performance or of ultimate recovery. See “Initial Production Rates and Short Term Test Rates" at the end 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

we

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: 54,372 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 “Initial Production Rates and 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

This presentation contains certain information and statements ("forward-looking statements") that constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future results or events, are basedupon internal plans, intentions, expectations and beliefs, and are subject to risks and uncertainties that may cause actual results or events to differ materially from those indicated or suggested therein. All statements other than statements of current or historical factconstitute forward-looking statements. Forward-looking statements are typically, but not always, identified by words such as "anticipate", "estimate", "expect", "intend", "forecast", "continue", "propose", "may", "will", "should", "believe", "plan", "target", "objective","project", "potential" and similar or other expressions indicating or suggesting future results or events.

Forward-looking statements are not promises of future outcomes. There is no assurance that the results or events indicated or suggested by the forward-looking statements, or the plans, intentions, expectations or beliefs contained therein or upon which they are based,are correct or will in fact occur or be realized (or if they do, what benefits the Company may derive therefrom).

In particular, but without limiting the foregoing, this presentation contains forward-looking statements pertaining to: any information that is in the nature of guidance or a forecast, and underlying assumptions; industry activity and transactions in the Pipestone Corridor,and the relevance to Blackbird; the attributes and potential of the Montney formation; the multi-interval potential of Company's lands, including the number of prospective Montney intervals; proposed drilling locations; validation of the Company's lands through bothinternal and third party drilling activity; timing for test results from wells drilled and completed but not yet tested; timing for pending tie-in of existing wells; anticipated cost reductions and NGL recovery improvements from the processing agreement with TidewaterMidstream and Infrastructure Ltd.; benefits to be realized from completion optimization efforts and initiatives; plans with respect to development and delineation drilling, increased processing, production growth and land aggregation; and competitive advantage realizedfrom corporate social responsibility initiatives.

With respect to the forward-looking statements contained in this presentation, Blackbird has assessed material factors and made assumptions regarding, among other things: future commodity prices and currency exchange rates, including consistency of future oil, naturalgas liquids (NGLs) and natural gas prices with current commodity price forecasts; the Company's continued ability to obtain qualified staff and equipment in a timely and cost-efficient manner; the ability to successfully apply to Blackbird properties the infrastructure andfacility design concepts applied elsewhere in its Pipestone / Elmworth Project; the predictability of future results based on past and current experience; the predictability and consistency of the legislative and regulatory regime governing royalties, taxes, environmentalmatters and oil and gas operations, both provincially and federally; the Company's ability to successfully market its production of oil, NGLs and natural gas; the timing and success of drilling and completion activities (and the extent to which the results thereof meetexpectations); the Company's future production levels and amount of future capital investment, and their consistency with the Company's current development plans and budget; future capital expenditure requirements and the sufficiency thereof to achieve theCompany’s objectives; the successful application of drilling and completion technology and processes; the applicability of new technologies for recovery and production of the Company's reserves and other resources, and their ability to improve capital and operationalefficiencies in the future; the recoverability of the Company's reserves and other resources; the Company’s ability to economically produce oil and gas from its properties and the timing and cost to do so; the performance of both new and existing wells; future cash flowsfrom production; future sources of funding for the Company's capital program, and its ability to obtain external financing when required and on acceptable terms; future debt levels; geological and engineering estimates in respect of the Company's reserves and otherresources; the accuracy of geological and geophysical data and the interpretation thereof; the geography of the areas in which the Company conducts exploration and development activities; the timely receipt of required regulatory approvals; the access, economic,regulatory and physical limitations to which the Company may be subject from time to time; and the impact of industry competition.

Information and statements regarding the Company's reserves also are forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves exist in the quantities predicted or estimated and can be profitablyproduced in the future.

The forward-looking statements contained herein reflect management's current views, but the assessments and assumptions upon which they are based may prove to be incorrect. Although Blackbird believes that its underlying assessments and assumptions arereasonable based on currently available information, undue reliance should not be placed on forward-looking statements, which are inherently uncertain, depend upon the accuracy of such assessments and assumptions, and are subject to known and unknown risks,uncertainties and other factors, both general and specific, many of which are beyond the Company's control, that that may cause actual results or events to differ materially from those indicated or suggested in the forward-looking statements. Such risks, uncertainties andother factors are discussed in the Company’s current annual information form, annual and interim management’s discussion and analysis, and other documents filed by it from time to time with securities regulatory authorities in Canada, copies of which are availableelectronically on SEDAR at www.sedar.com, and include, but are not limited to: volatility in market prices and demand for oil, NGLs and natural gas and hedging activities related thereto; general economic, business and industry conditions; variance of the Company's actualcapital costs, operating costs and economic returns from those anticipated; the ability to find, develop or acquire additional reserves and the availability of the capital or financing necessary to do so on satisfactory terms; risks related to the exploration, development andproduction of oil and natural gas reserves and resources; negative public perception of oil and natural gas development and transportation, hydraulic fracturing and fossil fuels; actions by governmental authorities, including changes in government regulation, royalties andtaxation; potential legislative and regulatory changes; the rescission, or amendment to the conditions of, groundwater licenses of the Company; management of the Company's growth; the ability to successfully identify and make attractive acquisitions, joint ventures orinvestments, or successfully integrate future acquisitions or businesses; the availability, cost or shortage of rigs, equipment, raw materials, supplies or qualified personnel; adoption or modification of climate change legislation by governments; the absence or loss of keyemployees; uncertainty associated with estimates of oil, NGLs and natural gas reserves and resources and the variance of such estimates from actual future production; dependence upon compressors, gathering lines, pipelines and other facilities, certain of which theCompany does not control; the ability to satisfy obligations under the Company's firm commitment transportation arrangements; the uncertainties related to the Company's identified drilling locations; the high-risk nature of successfully stimulating well productivity anddrilling for and producing oil, NGLs and natural gas; operating hazards and uninsured risks; the possibility that the Company's drilling activities may encounter sour gas; execution risks associated with the Company's business plan; failure to acquire or develop replacementreserves; the concentration of the Company's assets in the Pipestone / Elmworth Project area; unforeseen title defects; aboriginal claims; failure to accurately estimate abandonment and reclamation costs; the potential for development and exploratory drilling efforts andwell operations to be unprofitable or not achieve targeted returns; horizontal drilling and completion technique risks and failure of drilling results to meet expectations for reserves bookings or production; limited intellectual property protection for operating practices anddependence on employees and contractors; third party claims regarding the Company's right to use technology and equipment; expiry of certain leases for the undeveloped leasehold acreage in the near future; failure to realize the anticipated benefits of acquisitions ordispositions; failure of properties currently held or acquired in the future to produce as projected and inability to accurately determine reserve and resource potential, identify liabilities associated with acquired properties or obtain protection from sellers against suchliabilities; changes in the application, interpretation and enforcement of applicable laws and regulations; restrictions on drilling intended to protect certain species of wildlife; potential conflicts of interests; actual results differing materially from management estimates andassumptions; seasonality of the Company's activities and the Canadian oil and gas industry; alternatives to and changing demand for petroleum products; extensive competition in the Company's industry; lower oil, NGLs and natural gas prices and higher costs; failure of 2Dand 3D seismic data used by the Company to accurately identify the presence of oil and natural gas; risks relating to commodity price hedging instruments; terrorist attacks or armed conflict; cyber security risks, loss of information and computer systems; inability to disposeof non-strategic assets on attractive terms; security deposits required under provincial liability management programs; reassessment by taxing authorities of the Company's prior transactions and filings; variations in foreign exchange rates and interest rates; third partycredit risk including risk associated with counterparties in risk management activities related to commodity prices and foreign exchange rates; sufficiency of insurance coverage; potential litigation; variation in future calculations of non-IFRS measures; sufficiency of internalcontrols; breach of agreements by counterparties and potential enforceability issues in contracts; impact of expansion into new activities on risk exposure; inability of the Company to respond quickly to competitive pressures; and the risks related to the common shares andwarrants that are publicly traded. This list is not exhaustive.

The forward-looking statements contained in this presentation are made as of the date hereof and Blackbird assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required byapplicable securities laws. All forward-looking statements herein are expressly qualified by this advisory.

Advisories

TSX-V: BBI19

Third Party Information

This presentation contains statistical data, market research and industry forecasts that were obtained from government or other industry publications and reports or are based on estimates derived therefrom and management’s knowledge of, and experience in, themarkets in which Blackbird operates. Government and industry publications and reports generally indicate that they have obtained information from sources believed to be reliable, but do not guarantee its accuracy or completeness. Often, such information is providedsubject to specific terms and conditions limiting the liability of the provider, disclaiming any responsibility therefor, and/or limiting a third party’s ability to rely thereon. No author of any such publication or report has consulted for or advised or counselled Blackbird or is inany way associated with the Company. Further, organizations that are proponents of the Canadian oil and gas industry may present information in a manner that is different from, and potentially more favourable to the industry than, information presented by an entirelyindependent source. Actual outcomes may vary materially from those forecast in such reports or publications, and the prospect for material variation can be expected to increase as the length of the forecast period increases. Market and industry data is subject tovariation and cannot be verified due to limits on the availability and reliability of data inputs, the voluntary nature of the data gathering process, and other limitations and uncertainties inherent in any survey. Blackbird has not verified any data from third party sourcesreferred to in this presentation or assessed any underlying assumptions relied upon by such sources.

Reserves Data Disclosure

Figures provided in this presentation as to the Company's reserves volumes and net present value of future net revenue attributable thereto are estimates of such volumes and values as at July 31, 2017 based on an evaluation by McDaniel & Associates Consultants Ltd.("McDaniel"), Blackbird's independent qualified reserves evaluator, dated November 23, 2017 and effective July 31, 2017. McDaniel's evaluation was in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and,pursuant thereto, the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook").

Information in this presentation regarding the Company's estimated reserves, net present value of related future net revenue, and production is expressed on a net Company interest basis, being its working interest (operating and non-operating) share after deduction ofroyalty obligations plus any royalty interest. Estimates of future net revenue are after deduction of forecasted royalties, operating costs, estimated well abandonment and reclamation costs and estimated future development costs, but without any provision for interestcosts, debt service charges or general and administrative expenses.

Reserves volumes attributed to the Company's properties and related future net revenue are estimates only. There is no assurance that the estimated reserves can or will be recovered or that estimated future net revenues will be realized. Actual reserves may be greateror less than those estimated, and the difference may be material. Similarly, estimated net present values of related future net revenue attributed to reserves do not represent fair market value of those reserves. There is no assurance that the forecast prices and costassumptions applied in evaluating the reserves and estimating related future net revenue will be attained, and variances between actual and forecast prices and costs may be material.

The determination of oil and gas reserves involves estimating subsurface accumulations of oil, NGLs and natural gas that cannot be exactly measured. The preparation of estimates is subject to an inherent degree of associated risk and uncertainty, including factors that arebeyond the Company's control. The estimation and classification of reserves is a complex process involving the application of professional judgment combined with geological and engineering knowledge to assess whether specific classification criteria have been satisfied. Itrequires significant judgments based on available geological, geophysical, engineering, and economic data as well as forecasts of commodity prices and anticipated costs. As circumstances change and additional data becomes available, whether through the results ofdrilling, testing and production or from economic factors such as changes in product prices or development and production costs, reserves estimates also change. Revisions may be positive or negative.

Estimates of reserves and related 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.

Initial Production Rates and Short-Term Test Rates

This presentation includes disclosure on initial production (IP) rates for certain wells over 30-day (IP30), 60-day (IP60) and 90-day (IP90) measurement periods. It also discloses test rates of production for certain wells over short periods of time, which are preliminary andnot determinative of the rates at which those or any other wells will commence production and thereafter decline. Initial production rates and short-term test rates are not necessarily indicative of long-term well or reservoir performance or of ultimate recovery. Althoughsuch rates are useful in confirming the presence of hydrocarbons, they are preliminary in nature, are subject to a high degree of predictive uncertainty as a result of limited data availability, and may not be representative of stabilized on-stream production rates.Production over a longer period will also experience natural decline rates, which can be high in the Montney play and may not be consistent over the longer term with the decline experienced over an initial production period. Initial production or test rates may also includerecovered "load" fluids used in well completion stimulation operations. Actual results will differ from those realized during an initial production period or short-term test period, and the difference may be material.

Oil and Gas Measures

Barrels of Oil Equivalent – This presentation discloses certain production information on a barrels of oil equivalent ("boe") basis with natural gas converted to barrels of oil equivalent using a conversion factor of six thousand cubic feet of gas (mcf) to one barrel (bbl) of oil(6 mcf:1 bbl). Condensate and other NGLs are converted to boes at a ratio of 1 bbl:1 bbl. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based roughly on an energy equivalency conversion method primarily applicable atthe burner tip and does not represent a value equivalency at the Company's sales point. Although the 6:1 conversion ratio is an industry-accepted norm, it is not reflective of price or market value differentials between product types. Based on current commodity prices,the value ratio between crude oil, NGLs and natural gas is significantly different from the 6:1 energy equivalency ratio. Accordingly, using a conversion ratio of 6 mcf:1 bbl may be misleading as an indication of value.

Reserves Categories – The following definitions are derived from the COGE Handbook.

• "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 and engineering data; (ii) the use ofestablished technology; and (iii) specified economic conditions, which are generally accepted as being reasonable. Reserves are classified according to the degree of certainty associated with the estimates.

• "Proved" reserves are those 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.

• "Probable" reserves are those additional 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 the estimated proved plus probable reserves.

References herein to: (i) "1P" means proved reserves; (ii) "2P" means proved plus probable reserves; and (iii) "NPV10" means, with respect to reserves, net present value of estimated future net revenue related to the reserves (before income taxes), discounted at 10% peryear.

Advisories

TSX-V: BBI20

Oil and Gas Measures (continued)

Gross versus Net Interests – This presentation includes certain references to "gross" and "net" interests.

• The term "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 without including any royaltyinterests of the Company; (ii) in relation to wells, the total number of wells in which the Company has an interest; and (iii) in relation to properties, the total area of properties in which the Company has an interest.

• The term "net" means: (i) in relation to the Company's interest in production and reserves, the Company's working interest (operating and non-operating) share after deduction of royalties obligations, plus the Company's royalty interest in production or reserves; (ii)in relation to the Company's interest in wells, the number of wells obtained by aggregating the Company's working interest in each of its gross wells; and (iii) in relation to the Company's interest in a property, the total area in which the Company has an interestmultiplied by the working interest owned by the Company.

• CGR – References herein to "CGR" mean condensate/gas ratio and is expressed as a volume of condensate and NGLs (expressed in barrels) per million cubic feet (mmcf) of natural gas.

Analogous Information

Certain information in this presentation may constitute "analogous information" within the meaning of NI 51-101, including information relating to areas, wells or operations that are in geographical proximity to or believed to be on-trend with lands held by Blackbird andproduction information in respect of wells that are believed to be on trend with the Company's properties. Such information has been obtained from governmental or other public sources, regulatory agencies or other industry participants that are independent ofBlackbird. The Company does not, though, know whether any such information contained herein that constitutes "analogous information" was prepared in accordance with the COGE Handbook or by a qualified reserves evaluator or auditor under NI 51-101, as applicable,and cannot verify its accuracy. While believed to be reliable, third party data relied upon by Blackbird may be in error.

Management believes such information may be relevant to the Company's efforts to understand and predict reservoir characteristics of properties in which Blackbird may hold or intend to acquire an interest, and it is presented to help demonstrate the basis for theCompany's business plans and strategies. There is, however, no assurance that the qualities, characteristics or results suggested by or inferred from analogous information are or will be similar to or otherwise representative of the qualities or characteristics of properties inwhich Blackbird has or intends to acquire an interest or the results that the Company may achieve or realize from any operations thereon. Such information is not, and should not be construed or relied upon as, an estimate or predictor of resource potential or futureproduction levels.

TSX Venture Exchange Disclaimer

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the information contained in this presentation.

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]

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