Garett Ursu, an analyst with Cormark Securities,
highlighted this energy firm's upcoming well test results and upside
potential.
A Feb. 28 Cormark Securities research note indicated that Blackbird
Energy Inc. (BBI:TSX.V) is approaching its "final derisking
event," which is the release of test results from the northern
3-27-71-7W6 well, before the company transitions to "a high-growth
junior," wrote analyst Garett Ursu.
Initial results, due out shortly, are expected to be "strong"
and to confirm "a majority (>75%) of Blackbird's Pipestone acreage to
be within the volatile oil window." Consequently, the well results are
expected to have a "material and positive impact on the stock,"
just like those from Blackbird's eastern 2-20-70-6W6 Pipestone well did most
recently. They showed a flow of 1,163 barrels of oil equivalent per day and a
record 824 barrels per day of condensate.
Following announcement of the 3-27 results, Blackbird will shift Pipestone
to "fill plant commitments in mid-2019," Ursu noted. During this
phase, "we expect the market to begin to value Blackbird as a growth
name rather than a land/net asset value play."
Ursu reiterated Cormark's positive take on Blackbird: "We continue to
view the company as the most attractive small-cap Montney name in our
universe with approaching catalysts, behind-pipe volumes and a large land
base within the desirable liquids-rich Pipestone Montney fairway."
Cormark has a Buy rating and a CA$0.90 per share target price on
Blackbird, whose stock is currently trading at around CA$0.38 per share.
