Changing Perceptions

Date PublishedNovember 26, 2015
CompanyBlackbird Energy Inc.
Article AuthorGarth Braun
Article TypeNovember 2015 Issue
CategoryArticles, Oil & Gas
Tags, , ,
HUB SEARCHBlackbirdEnergy
PULSE Interactive

Changing Perceptions

If you were to ask a research analyst in Calgary where they would invest an extra $10,000 that happened to be laying around, what companies would they recommend?

blacbird-enrgy-logoWe have just completed the drilling of our third Montney well, the 2-20. This is a big event in Blackbird’s evolution. We drilled the 2-20 well in approximately half the time and for half the cost of our 6-26 well, an accomplishment that makes me smile ear to ear! The reduced drilling time and cost was not due to the cost compression being experienced in the oil and gas sector, but because of the efficiency we gained through innovation. I do not mean to be aggressive in this opening statement, but I have to say Blackbird is evolving – from a company that is perceived as a speculative exploration trade, to that of a company that is delineating a project and moving to development. Let me explain.

Changing The Perception Of BlackBird In The Eyes Of Stakeholders

If you were to ask a research analyst in Calgary where they would invest an extra $10,000 that happened to be laying around, what companies would they recommend? The answers would most likely include industry leaders such as Whitecap, Peyto, or Tourmaline. The reason I am able to confidently predict these answers is because the oil and gas investment theme at $45 oil is to invest in “quality” and/or “size”. This investment philosophy is summed up as a move “up-market”.

Though we are considered a “buy” among all of the analysts that cover us through research, there is one small caveat to this recommendation amongst the majority of analysts that precludes us from being an


“up-market” move in the eyes of investors. This small caveat is that we are “speculative” in risk. In other words, we are perceived as a “high-risk” investment.

I am not satisfied with this, nor should I be as a CEO that has worked tirelessly to build value for Blackbird’s shareholders. It is my mandate to fundamentally change this perception, and to drive what I believe is the reality – which is that we are not a “trade”, but rather an “investment”. How do I go about altering this perception? Particularly due to the fact that we are only months away from several catalysts that will drive this “trade” mentality? My answer to you is communication, action – and one other simple concept: becoming a development company vs. an exploration company.

Transparent Communications

On the communication front I think we are already proving to our shareholders, stakeholders and the capital markets community that we are not some run of the mill junior oil and gas management team, and that we strive to provide a great deal of transparency to our stakeholders. Our communication tools include required media such as news releases, but also media that is not required such as the Executive Letter and various presentations, conferences and road-shows. These communications allow us to reach out to our shareholder base directly and update them on our operations, strategy and the way we look to build value moving forward.

It all comes down to transparency, and we believe that this transparency significantly reduces the risk profile for our shareholders. If you call me I will always answer or return your call. If you email, I will email you back. Our stakeholders and the execution of our business plan are my top priorities.

Action & Results

Preferred Vendor Microsite: Energy Auctions Inc.While communication is great, it’s not likely to change your perception of whether we are a “high-risk” investment without positive results to back it up. Alas, the most effective way to change perception is through action. This just happens to be what we strive to do on a daily basis. You may ask “Well what have you done lately, Garth??” A lot!

Garth Braun
Chairman, President & CEO







Originally published in the 

November 2015 issue of Oilfield PULSE