BlackPearl Resources Inc.

BlackPearl Resources Inc.

August 12, 2009 03:00 ET

BlackPearl Announces Second Quarter 2009 Financial and Operating Results

CALGARY, ALBERTA--(Marketwire - Aug. 12, 2009) - BlackPearl Resources Inc. ("BlackPearl" or the "Company") (TSX:PXX)(FIRST NORTH:PXXS) is pleased to announce its financial and operating results for the three and six months ended June 30, 2009.

Highlights during the quarter included:

- Stronger oil prices and narrower heavy oil differentials over Q1 positively impacted financial results;

- Revenues of $22.1 million, a 41% increase over Q1;

- Cash flow of $7.9 million;

- Completion of a $46 million equity offering in April;

- Strong balance sheet with $56.8 million in working capital and no debt;

- Continued progress on preparing development plans for the Company's three core areas of Onion Lake, Blackrod and Mooney;

John Festival, President of BlackPearl, commenting on the second quarter results, indicated that, "Higher oil prices and narrower differentials resulted in improved financial results for the second quarter compared to the first three months of the year. We also made good progress with our cost reduction initiatives with both operating costs and general and administrative costs lowered from first quarter amounts. Activity levels were low during the quarter, as we elected to conserve cash; however, as a result of the improvement in oil prices and our recent equity offering, BlackPearl is in a strong financial position. We intend to advance the development of each of our core area projects. We have increased our capital budget and are planning to spend $85-90 million over the next 18-24 months. Initially we will drill primary vertical wells at Onion Lake, along with development of the SAGD pilot project at Blackrod, and implement phase one of the polymer flood at Mooney. In addition, we will continue to evaluate thermal recovery options at Onion Lake. These projects are not expected to have an immediate impact on short-term production growth but they will lay the foundation for growth over the next three to five years."

Financial and Operating Highlights

Three months ended June 30 Six months ended June 30
2009 2008 2009 2008

Daily production /
sales volumes (1)
Oil (bbl/d) 4,167 6,679 4,294 7,695
Natural gas (mcf/d) 6,017 9,402 6,271 10,080
Combined (Boe/d) 5,170 8,246 5,339 9,375

Product pricing ($)
Crude oil - per bbl 53.33 84.65 42.40 72.55
Natural gas - per mcf 3.51 9.80 4.32 8.73
Combined - per Boe 47.07 79.74 39.22 68.97

($000's, except per
share and Boe amounts)
Oil and gas revenue -
gross 22,143 59,839 37,898 117,669

Royalties ($/Boe) 10.74 19.93 8.20 16.93
Transportation costs
($/Boe) 1.46 1.34 2.06 1.29
Operating costs
($/Boe) 12.48 15.26 16.60 17.78

Net income (loss) for
the period (10,889) 6,688 (31,405) 2,898
Per share, basic and
diluted (0.05) 0.04 (0.14) 0.02

Cash flow from
operating activities,
before working capital
adjustments 7,910 28,023 6,106 47,475

Capital expenditures 932 17,605 4,079 35,117

Working Capital, end
of period 56,794 57,371 56,794 57,371
Long term debt - 5,000 - 5,000

Shares outstanding,
end of period 261,684,050 189,241,716 261,684,050 189,241,716

(1) Boe amounts are based on a conversion ratio of 6 mcf of gas to 1 barrel
of oil. BOEs may be misleading, particularly if used in isolation. A
Boe conversion ratio of 6 mcf: 1 barrel is based on an energy
equivalency conversion method primarily applicable at the burner tip and
does not represent a value equivalency at the wellhead.

The 2009 second quarter report to shareholders, including the financial statements, management's discussion and analysis and notes to the financial statements are available on the Company's website ( or SEDAR (

Reserves Evaluator

The Company also wishes to announce that it has selected the reserve evaluation firm of Sproule Associates Limited, in Calgary Alberta, to undertake the December 31, 2009 independent evaluation of the Company's oil and gas reserves.

Forward-Looking Statements

Certain of the statements made and information contained herein is forward-looking statements and forward looking information (collectively referred to as "forward-looking statements") within the meaning of Canadian securities laws. All statements other than statements of historic fact are forward-looking statements. Forward-looking statements are typically identified by such words as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "potential", "targeting", "intend", "could", "might", "should", "believe" or similar words suggesting future events or future performance. In addition, statements relating to "reserves" or "resources" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and can be profitably produced in the future. In particular, this document contains forward-looking statements pertaining to, and which rely on assumptions as to, without limitation, business plans and strategies, capital expenditure programs, operating costs, production levels and oil and gas prices.

Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. Although we believe that the expectations conveyed by the forward-looking statements are reasonable based on information available to us on the date such forward-looking statements were made, there can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized. Actual results will differ, and the difference may be material and adverse to the Corporation and its shareholders.

BlackPearl's Certified Advisor on First North is E. Ohman J:or Fondkommission AB.

Company Registration Number: 409596-1

The report for the quarter ending September 30, 2009 will be published on or before November 13, 2009.

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