The Girouxille Montney is a large pool

 

The Girouxville Montney light oil 'S' Pool is extending to the west and contains at least 65 million OOIP with only an assumed 4% recovery factor.  At present, there are 5 wells and a 6th awaiting completion on Blacksteel's land base.  SinoEnergy owned Long Run, (closed July 2016), has drilled 5 horizontal well offsetting Blacksteel's lands since September 2016.  Recovery factors have been increasing with improvements in drilling and completion techniques and Long Run implemented a waterflood 2 years ago with encouraging results on trend a half mile to the east of 3 of Blacksteel's wells. 

The Blacksteel Board of Directors and Management team is a focused group with diverse backgrounds within the energy sector.

- Director: Eugene Chen, Partner, Shea Nerland,     Lawyer

- Director: Chris Scase, CFO & Director, Cambre Resource, CA

- President & Director: Les Treitz, President of private energy producers, Geologist

- Derek Batorowski, CFO, CFO for numerous junior energy producers 

A quality asset base is key to creating shareholder returns

Economics

Operations

Scalable Upside


Drilling 8 wells/section indicates upwards of 60 identified locations.  Positive results from the nearby waterflood could materially increase the  economic recovery of oil and natural gas. Lower service costs and local infrastructure support enhanced rates of return.  


- $1.85 million: Cost to drill, complete, & tie-in production

- 65 million: Original Oil in Place identified by the Independent Reserve Auditor

- 4%: Current Recovery factor on primary production

- Unknown: Recovery factor beyond 4% of a waterflood development plan

- 60+: Identified horizontal drilling locations

- 60%: light oil weighting of production

- 224,000: current boe recoverable per well

- 2.4: Recycle Ratio

- 72%: Rate of Return

- 1.2: Years to payback based on Q3, 2016 GLJ price deck 

Girouxville Well Pad

Partially Developed well pad

Directors & Management

Well Pad