Blackbird Energy Announces New Oil Exploration Project in the Mantario, SK Area Focusing on the Lower Mannville and a Farmout Agreement With Pennant Energy Inc.

Jun 20, 2013

VANCOUVER, BRITISH COLUMBIA — (Marketwired) — 06/20/13 — Blackbird Energy Inc. (“Blackbird” or the “Company”) (TSX VENTURE:BBI) is pleased to announce that it has completed the following on its new oil exploration project in the Mantario area of West Central Saskatchewan (“Mantario Project”): Acquired more than 1,280 acres of petroleum and natural gas rights targeting the Lower Mannville, completed and evaluated 2D and 3D seismic on the lands, and entered into a Farm-out Agreement (the “Agreement”) with Pennant Energy Inc. (“Pennant”).

Under the terms of the Agreement, Pennant may, subject to approval from the TSX Venture Exchange (the “Exchange”), earn a 30% working interest in certain lands and leases comprising the Mantario Project. To earn the 30% interest, Pennant must pay to Blackbird 50% of the land acquisition costs incurred to date including brokerage and transfer costs ($200,000 net estimated), and 50% of the 3D seismic program including geological and geophysical interpretation ($125,000 net estimated). Pennant will also be required to pay 50% of the drilling, completing, equipping and tie-in costs of the test well to earn the working interest.

Subject to receipt of Exchange approval, the Agreement provides that Blackbird will serve notice of its intent to spud the test well on or before August 1, 2013. Upon receipt of such notice Pennant will advance 50% of the drill and case cost estimate, being $221,907, to Blackbird.

Garth Braun, President and CEO of Blackbird stated, “Over the last year the Blackbird team has focused on originating new projects. The Mantario Project announcement is the culmination of an extensive due diligence process and the assembling of a core land position. The team continues to focus on identifying new opportunities that will deliver value to our shareholders. In the last year several wells have been drilled in the Mantario area of West Central Saskatchewan and the initial production rates have been in the range of 65 to 100 barrels of oil per day. Based on these metrics, Blackbird will be looking to aggressively explore and develop this oil project.”

The Agreement remains subject to Exchange approval.

http://www.blackbirdenergyinc.com/s/NewsReleases.asp