On December 19th (one day after Fed meeting in USA ~ to hike rates or pause or not) the merger is voted on to create a "Pure Play" for Condensate.
"Condensate" if you don't know is light flammable fuel like paint thinner, in fact its used as thinner.
Shell Oil is building a massive LNG facility in Kitimat ($40 Billion). The Natural Gas to meet Asia electricity demand is worth 5-7 Billion a year. The scale of LNG Terminal creating demand for nat gas prices inncreases in Canada will be zero until 2022-2023 when the first ship sets sale.
Meanwhile the Oilsands producers are scrambling to save $. The $19 per barrel condensate cost is killing them, anybody who comes to the table with lower cost condensate earns business, alot of business. There are very few pure play condensate players. So the reality is the leverage to this merger is very timely, and significant and at the market bottom.
So listen up. I am going to make you alot of money. Throw out your textbooks, throw away your ideas of how you think things work on this planet. If you are religeous, political, scientific, a sasquatch with a degree in interpretive feminine dance and a minor in spicy food literature - I don't care! I still can benefit your situation if you will do some napkin math and understand TODAY the reality of RIGHT HERE RIGHT NOW, not 5 years from now, not 3 years or 30 years but right now.
Ok, you are still here.
The earth has only so many acres of "economic" meaning "commercially viable" rock capable of repeating results well after well at predicatable flows and pressures for X cost and Y profit.
The rock in Canada beneath the feet of Blackbird is stacked with very blessed Liquids. The name of the liquid for public non-chemists is "Condensate".
Its "Value Prop" is it lowers the DENSITY of any heavy oil or dense fluid so that the VISCOSITY is less, meaning its easier to PUMP, it flows faster, it's less expensive to move PRODUCT "A" from A to B.
The DEMAND for low cost condensate in the ALBERTA and B.C. region is skyrocketing right now.
The reason; Alberta is selling OIL to USA with $19 of Condensate in it for $15. Until today (dec 3) it was sold for nearly $10 even though it has $19 of thinner in each barrel called Condensate.
So there are 25 customers that are scrambling to get a better price on Condensate.
The MERGER is very timely. The market is Bottoming, meaning the Value is not recognized by the market place and its not recognized by the Money managers either.
The DEMAND for Condesate will increase from now to 2022 every year. The # of Lands that are drill ready are limited. The # of economic producers are limited, and now the PURE PLAY in solving that problem is doing a transaction at the exact bottom of the market.
The BONUS is the Governments of ALBERTA and CANADA just ordered 7000 railway cars, and 80 locomotives to ship more Bitumen thats 120,000 Barrels that need 20%-30% of condensate mixed in to transport by railcar.
LOTS OF DEMAND, HARDLY ANY SUPPLY, at the BOTTOM OF THE MARKET and the USD is Topping out.
This sets up a LOW RISK - HIGH REWARD situation "IF" you can afford to "HOLD" to the top of the next cycle for the MAXIMUM returns are in the last few months that often go PARABOLIC.
At some point a Intermediate company will buy out the projects and you get either new shares or cash out.
So what you need to know is ;
WHO: Blackbird Energy
WHY: They have the right size and structure to deliver on promises.
WHEN: Time to consider a purchase is during Tax Loss season now to DEC 24 when shares are lowest price and everyone is busy with holidays and ignoring markets
WHAT: Warrants or Shares.
HOW: Use an advisor or trade on your own if you have skill and account.
Here is a clip of the merger;
Blackbird Energy
Once its one entity they have lots of Land, lots of stacked rock with the right liquid that industry is hot in demand after and the price they obtain it for is only going to go down as they scale up and the demand won't drop for 5-7 years.
So you are in the first to know and you can benefit right now by educating yourself on this exact pure play.
Good Luck and don't wait for 2019. The shift in cleaner fuels to coal is the big push from G20 and Asia so the "good to go" is right now before the media plasters this on the screens.
It is Dec 3, 2018.
The drilling cycle is in the winter, lots of new news on drilling is seasonally out from now to March, when the Q2 numbers come out you can trim you core position by whatever you gained and ride out the next drilling cycle next winter.
Plan to hold the core until 2022-2023 for Maximum parabolic moves that ALWAYS come late in the business cycle and its a 5-7 year cycle from the very bottom to very top on average.
There are very few who have the land and the expertise these guys have both:
https://www.blackbirdenergyinc.com/investors/photo-gallery/video/6-26-70-7w6-completion
They also have the cash, the market buyers, and the right connections in the bottom of the cycle to get this deal done.
That's all you need to make money. Buy at the bottom is hard, it could be today, or in 3 weeks, but in 2022 you won't car if you pay 20 cents or 25 because its going to be a 5X to 10X to 15X return by that time.
You won't get that on the S&P or Nasdaq or DOW in a deflationary cycle. Read more here
https://www.blackbirdenergyinc.com/assets/docs/2018-Q3-Interim-Report_BBI.pdf
The Iran sanctions are going drive up fuel prices in Europe by April. The USA will then have rope to rise its prices and the higher prices will trigger lower priced feedstock from Canada to be imported into the USA refinery complex and remember the Canada barrel needs a thinner, and the thinner comes from the lowest cost producer and that has to be the largest lands with the best rock and the most efficient explorers.
