Blackbird Energy Inc.: Announces Third Montney Horizontal Well Spud and Operational Update

Blackbird Energy Inc. (TSX VENTURE:BBI) ("Blackbird" or the "Company"), is
pleased to announce that, further to Blackbird's news release of January 17,
2012, Donnybrook Energy Inc. has informed the Company that the third Montney
Horizontal well at Bigstone is scheduled to spud within two weeks from a surface
location at 4-28-60-22 W5M and will be an extended reach Hz well with
approximately 2,700 metres of lateral length planned to a bottom hole location
at 13-33-60-22 W5M. 


Operational Update on Second Montney Horizontal Well

Production tubing has been installed in the Bigstone Hz 15-32-60-22 W5M well and
a seven day production test has been completed. The well flowed at an average
rate of 1.1 mmcf/d. As previously reported, a review of the 23 stage hydraulic
fracture stimulation that was performed on the well indicates that only 5 of the
23 stages of the planned fracture program were successfully stimulated. This
rate is consistent with the interpretation that only 5 of the 23 stages are
contributing to the well's production. As a result the reported well completion
test rates do not reflect the quality of reservoir the well encountered while
drilling. The 15-32 well encountered 2,744 metres of high quality Montney
reservoir with strong gas shows and excellent penetration rates. The reservoir
encountered is comparable to the Montney interval that was successfully
completed in the Blackbird Hz 14-29-60-22 W5M Bigstone discovery well (37.5%
BPO; 25% APO). The 14-29 well has a 1,200 metre lateral length and tested 4.3
mmcf/d of natural gas and 295 barrels of condensate per day - a ratio of 70
barrels of NGLs per mmcf of gas (1,011 barrels of oil equivalent per day). 


Bigstone is located in an area of significant industry activity and recent
drilling and completion successes. A 2,760 metre extended reach horizontal well
has been recently drilled and completed by an industry competitor offsetting
Blackbird's lands 800 metres to the west and parallel to Blackbird's 14-29 well.
This well terminated approximately 200 metres from Donnybrook's land block. The
operator of the well reported a final 24 hour test rate, after a 4 day flow
period, of 12.5 mmcf/d of natural gas and 770 barrels of condensate per day and
an estimated 30-35 barrels of condensate per mmcf. This well further
demonstrates the potential of the Montney reservoir to the west and indicates
the reservoir continues to the northwest onto Blackbird's land block.


Construction of Pipeline and Surface Facilities 

Construction operations for the pipeline and surface facilities connecting the
14-29 and 15-32 wells is projected to start late February with wells and
facilities ready for production to start by April 1st, 2012.


Unsecured Loan Facility

Blackbird also announces that it has entered into unsecured loan agreements with
certain of its directors/officers and several third parties for the provision of
loans in the aggregate amount of $1,015,000 (the "Loans"), the purpose of which
is to help fund the Company's obligations in respect of the Bigstone Project,
specifically in regards to the construction of the pipeline and surface
facilities. The Loans are for a one year period and are subject to an annual
interest rate of 20%, payable in full at maturity. The terms of the Loans permit
the Company to prepay all or part of the Loans at any time and from time to time
without bonus, penalty or premium. Approximately 70% of the Loan funds were
provided by directors and officers of the Company.


Garth Braun, Chief Executive Officer and Director of Blackbird, commented, "we
are very pleased to announce these two major developments in regards to first,
the status of the second Montney well and the positive results therefrom,
despite the completion issues that were encountered, and second, the
commencement of the installation of the production infrastructure. We are now
very excited about proceeding onto the third well."


About Blackbird

Blackbird's Bigstone Project is comprised of lands and licences covering a total
of 5,120 acres (1,120 nets acres), in Township 60, ranges 22 and 23W5 at
Bigstone, Alberta. Blackbird has completed all the terms of the farm in
agreement, and has earned a 25 per cent of Donnybrook Energy Inc.'s interest in
the Bigstone lands and in any future operations within an area of mutual
interest.


Blackbird's wholly-owned subsidiary Blackbird Energy LLC ("Blackbird Energy")
holds a 75% interest in 3,857 acres of leasehold land located in Gray County,
Texas known locally as the "Mathers-Gordon Prospect". The Mathers-Gordon
Prospect is a multi pay oil and gas prospect. Blackbird Energy is the operator
of the prospect. In addition, Blackbird plans to actively look for further oil
and gas properties for acquisition or potential joint ventures. 


On behalf of the board of BLACKBIRD ENERGY INC. 

Garth Braun, Chief Executive Officer and Director

Disclaimer for Forward-Looking Information

Certain statements in this release are forward-looking statements, which reflect
the expectations of management regarding Donnybrook's ability to drill the next
well on the project, the timing of the drilling and any results from the well
specifically or the Montney Shale play in general and the timing of production
and any related facilities. Forward-looking statements consist of statements
that are not purely historical, including any statements regarding beliefs,
plans, expectations or intentions regarding the future. Such statements are
subject to risks and uncertainties that may cause actual results, performance or
developments to differ materially from those contained in the statements. No
assurance can be given that any of the events anticipated by the forward-looking
statements will occur or, if they do occur, what benefits the Company will
obtain from them. These forward-looking statements reflect management's current
views and are based on certain expectations, estimates and assumptions which may
prove to be incorrect. A number of risks and uncertainties could cause our
actual results to differ materially from those expressed or implied by the
forward-looking statements, including: (1) a downturn in general economic
conditions in North America and internationally, (2) the inherent uncertainties
and speculative nature associated with oil and gas exploration and production,
(3) a decreased demand for natural gas, (4) any number of events or causes which
may delay or cease exploration and development of the Company's property
interests, such as environmental liabilities, weather, mechanical failures,
safety concerns and labour problems; (5) the risk that the Company does not
execute its business plan, (6) inability to retain key employees, (7) inability
to finance operations and growth, and (8) other factors beyond the Company's
control. These forward-looking statements are made as of the date of this news
release and, except as required by law, the Company assumes no obligation to
update these forward-looking statements, or to update the reasons why actual
results differed from those projected in the forward-looking statements. 


Oil Equivalency Conversion (BOE)

Where amounts are expressed on a barrel of oil equivalent ("BOE") basis, natural
gas volumes have been converted to BOE at a ratio of 6,000 cubic feet of natural
gas to one barrel of oil equivalent (6 Mcf = 1 BOE). The conversion ratio is
based upon an energy equivalent conversion method, primarily applicable at the
burner tip and does not represent value equivalence at the wellhead. BOE values
may be misleading, particularly if used in isolation.
Blackbird Energy Inc. (TSXV:BBI)
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