Pipestone Energy Corp. Announces Progress On Its Development Program And A Significant Increase In The Value Of Its Reserves And Resources

Calgary, March 20, 2019 (PIPE – TSX-V) Pipestone Energy Corp. (“Pipestone Energy” or the “Company”) is pleased to provide an operational update as well as updated reserves and resources information effective as of January 4, 2019, which was the closing date of the amalgamation (the “Amalgamation”) of Pipestone Oil Corp. (“Pipestone Oil”) and Blackbird Energy Inc. (“Blackbird”). A conference call has been scheduled for Wednesday, March 20th at 9:00 a.m. Mountain Standard Time (11:00 a.m. Eastern Standard Time) for interested investors, analysts, brokers and media representatives.

 “Pipestone Energy continues to successfully execute on its development program in 2019, which includes the construction of an integrated in-field gathering and third-party compression system, capable of supporting approximately 33,000 boe/d of sales production. We recently completed drilling the final well of a 7 well program on our 3-1 pad and are preparing to complete these wells in late spring. We have been extremely pleased with the drilling performance on this pad over the past few months as we have set several new operational milestones, including a new performance pacesetter on our final well. Pipestone Energy is well positioned to meet our 2019 exit production guidance of 14,000 – 16,000 boe/d,” stated Paul Wanklyn, Pipestone Energy President and Chief Executive Officer. “The capital efficiencies we achieved during the most recent drilling and completions activities in Q4 2018 and Q1 2019 has resulted in an 11% decrease in our well costs from $9.7 million to $8.6 million. With our large contiguous land position in the condensate-rich Pipestone Montney, committed access to processing infrastructure, product egress, and a strong balance sheet, we expect to deliver strong shareholder value.”

HIGHLIGHTS

  • Increased the net present value before tax, discounted at 10% (“NPV10%”) of Pipestone Energy’s Proved (“1P”) reserves from $554 million to $839 million, an increase of 51% since August 1, 2018

  • Increased the NPV10% of Pipestone Energy’s Proved + Probable (“2P”) reserves from $1,170 million to $1,394 million, an increase of 19% since August 1, 2018

  • Development program to achieve 2019 exit production of 14,000 – 16,000 boe/d is on-track and on-budget

  • Average final 24 hour test rate on all wells completed north of the Wapiti River of ~1,790 boe/d (45% condensate) based on raw gas and wellhead condensate production (excludes natural gas liquids) (1)

  • Infield operated gathering infrastructure project is 95% complete

(1)    Based on the latest test results (16 tests) for each well as available (excludes initial test if the well has been subsequently retested)

2019 CAPITAL PROGRAM UPDATE

Due to weather-related delays in Q4 2018, Pipestone Energy spent ~$10 million less than expected causing a shift of the capital expenditure program into Q1 2019. As a result, Pipestone Energy plans to spend between $145 - $165 million on the 2019 capital program. The Company recently finished drilling its fourth and final well for Q1 and expects to drill 9 additional wells in H2 2019.  Pipestone Energy is planning to complete 7 wells in 2019 and will have a balance of 12 wells drilled but uncompleted (“DUC”) at year end 2019. The Company may elect to accelerate the completion of 3 additional DUCs into Q4 2019 depending on prevailing market conditions.

Pipestone Energy 5 Quarter Capital Program Overview (Q4 2018 – Q4 2019)

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Pipestone Energy Corp. Appoints Chief Financial Officer

Calgary, Alberta – January 29, 2019

Pipestone Energy Corp. (“Pipestone Energy”) (TSX-V: PIPE) announces the appointment of Craig Nieboer as Chief Financial Officer to be effective February 11, 2019.

Mr. Nieboer has over 30 years of professional experience, including approximately 20 years in the Canadian and international oil and gas industries. He most recently served as Chief Financial Officer of TSX-listed CES Energy Solutions Corp. since 2008.

Mr. Nieboer is a Chartered Accountant with a Bachelor of Commerce degree from the University of Calgary.

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Pipestone Energy Corp. Files Financial Statements

CALGARY, Alberta, Jan. 09, 2019 (GLOBE NEWSWIRE) -- Pipestone Energy Corp. (“Pipestone Energy”) (TSX-V: PIPE) announces that in accordance with the requirements of National Instrument 51-102 - Continuous Disclosure Obligations (“NI 51-102”) it has filed the unaudited interim financial statements for its predecessor Pipestone Oil Corp. (“POC”) for the three and nine month periods ended September 30, 2018. As Pipestone Energy was the “reverse takeover acquirer” (as defined in NI 51-102) of Blackbird Energy Inc. (“Blackbird”) in the amalgamation of POC and Blackbird pursuant to a series of steps under a plan of arrangement under section 193 of the Business Corporations Act (Alberta) completed on January 4, 2019 (the “Arrangement”), Pipestone is required to make this historical filing. The financial statements have been filed on SEDAR under Pipestone Energy’s profile at www.sedar.com. Readers are cautioned that these unaudited interim financial statements were prepared and approved by the POC board of directors in advance of the closing of the Arrangement and make no disclosure regarding the Arrangement, Blackbird’s results for the period or Blackbird’s assets contributed to the Corporation under the Arrangement.

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Blackbird Energy Inc. And Pipestone Oil Corp. Announce The Closing Of A Strategic Merger

Blackbird Energy Inc. (“Blackbird”) (TSX-V: BBI) and Pipestone Oil Corp. (“Pipestone Oil”) are pleased to announce that they have closed their previously announced business combination (the “Transaction”), which was completed by way of a plan of arrangement (the “Arrangement”). Concurrent with the Transaction, Blackbird and Pipestone Oil have closed equity financings totaling $111.0 million with certain existing shareholders and Pipestone Oil has arranged $198.5 million of debt financing (collectively, the “Financings”). The closing of the Transaction and Financings results in the strategic combination of two adjacent and contiguous Pipestone Montney land bases under a single well capitalized, high growth company that will operate under the name Pipestone Energy Corp. (“Pipestone Energy”).

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Blackbird Energy Inc. Receives Strong Shareholder Support for Strategic Combination With Pipestone Oil Corp.

CALGARY, Alberta, Dec. 19, 2018 (GLOBE NEWSWIRE) -- (TSX-V: BBI) Blackbird Energy Inc. (“Blackbird” or the “Company”) is pleased to announce that its shareholders (the “Blackbird Shareholders”) have approved the previously announced strategic combination of Blackbird and Pipestone Oil Corp. (the “Transaction”) at a special meeting held today, by a majority of over 99% of votes cast. The Blackbird Shareholders also approved the continuance of Blackbird from British Columbia into Alberta (the “Continuance”), which is necessary for the Transaction to proceed as proposed. The Transaction will result in the strategic combination of two adjacent and contiguous Pipestone Montney land bases under a single well-capitalized, high growth company that will operate under the name Pipestone Energy Corp. (“Pipestone Energy”).

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Blackbird Energy Inc. And Pipestone Oil Corp. Announce A Strategic Merger And $310 Million In Equity And Debt Financings To Form A Premier High Growth Pure-Play Condensate Rich Montney Company

Blackbird Energy Inc. (“Blackbird”) (TSX-V: BBI) and Pipestone Oil Corp. (“Pipestone Oil”) are pleased to announce that they have entered into an agreement (the “Arrangement Agreement”) dated October 29, 2018 that provides for the combination of Blackbird and Pipestone Oil (the “Transaction”). Concurrent with the Transaction, Blackbird and Pipestone Oil have entered into agreements with certain of their existing shareholders who have committed to common equity financings totaling $111.0 million and Pipestone Oil has arranged $198.5 million of debt financing (collectively, the “Financings”). The Transaction and Financings will result in the strategic combination of two adjacent and contiguous Pipestone Montney land bases under a single well-capitalized, high growth company that will operate under the name Pipestone Energy Corp. (“Pipestone Energy”).

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