Blackbird Energy reaches for the Sky: becomes most liquid oil

Blackbird Energy (BBI:TSXV) was the most liquid oil and gas stock on the TSX Venture Monday, as it jumped 21% to close at its highest level of the year.

Blackbird has been the subject of a number of articles at Pinnacle in recent months.The company has been developing its assets in the Montney Play Trend of North-East British Columbia and North-West Alberta. Since our first article in September of 2013, the company has gone from basically an unknown, thinly traded 5 cent stock to the most liquid oil and gas stock on the TSX Venture today.

Blackbird’s market cap ballooned to over $50 million today, closing at $57.9 million. There were more than 4.2 million shares traded Monday. Its shares have risen from a 52-week low of $0.045 to a high of $0.31 – hit today.

Prior to April 24th, Blackbird had been averaging about 250,000 shares traded per day. Then on April 24th its stock traded 2.8 million shares. Since then it has traded more than 27 million shares in just 13 trading days.

Below is an excerpt from our initial article on the company from September of last year.

“Blackbird Energy Inc. (BBI:TSXV), a junior oil and gas company operating in Saskatchewan and North East British Columbia, has had an active September. In early September it announced it was preparing to spud its first well in Saskatchewan. Today it announced a significant land acquisition in the Montney play trend. Our team wrote up the prolific and expanding oil and natural gas region earlier this week, titled, Montney Play Trend Leads Natural Gas Expansion in British Columbia. Blackbird Energy’s stock rose as much as 27% Tuesday, capturing the Daily Stock Challenge Breakout honors, before closing at $0.085 – up 13%. More than 114,000 shares traded hands on the day. With just over 120 million shares outstanding, Blackbird has a market cap of $10.5 million.”

Click here to read the entire article.

Below is an excerpt from a news release the Calgary-based company released on May 1st, which has dramatically altered how investors are valuing this emerging small-cap oil and gas company.

“Blackbird Energy Inc. Reports 479% Increase of P+P NPV10 at Its Bigstone Project Blackbird Energy Inc. (TSX VENTURE:BBI) (“Blackbird” or the “Company”) is very pleased to announce the results of its revised independent reserves evaluation of its Bigstone project in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (“NI 51-101”) as at April 30, 2014. Highlights – April 30, 2014 compared to July 31, 2013 Proved Reserves Increased Proved reserves by 247% to 434 Mboe (33% liquids). Increased NPV of Proved reserves by 394% to $3.58 million (before tax discounted at 10%). Proved plus Probable Reserves Increased Proved plus Probable reserves by 195% to 2,259 Mboe (33% liquids). Increased NPV of Proved plus Probable reserves by 479% to $22 million (before tax, discounted at 10%). Summary of Reserves The reserves data set forth below is based upon an independent reserves evaluation prepared by GLJ Petroleum Consultants (“GLJ”) with an effective date of April 30, 2014 (the “GLJ Report”).”

Click here for the entire press release and to view a presentation which summarizes Blackbird’s crude oil, natural gas liquids and natural gas reserves.

Blackbird Energy Insider Buying Picks Up

Last week was an active one in respect to insider buying from the company’s key leaders.

Darrell Denney, the company’s COO, bought 160,000 shares at $0.215 per share on May 8th.

Ron Schmitz, Blackbird’s CFO, picked up 40,000 at $0.245 on May 9th.

A higher share price may very well be in Blackbird Energy‘s future. It had 294,500 shares bidding at $0.30 per share at the close Monday and just 17,000 on the offer at $0.31. Time will tell…

Disclosure: PinnacleDigest.com and its employees are not a registered broker-dealer or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Nothing in this article should be construed as a solicitation to buy or sell any securities mentioned anywhere in this newsletter. This article is intended for informational and entertainment purposes only. The author of this article bears no liability for losses and/or damages arising from the use of this article. At the time this article was published, neither Pinnacle Digest or any member of its staff owned shares of Blackbird Energy.