Blackdog Resources Ltd.

Blackdog Resources Ltd.

January 20, 2010 08:00 ET

Blackdog Resources Ltd. Completes Acquisition at Woking

CALGARY, ALBERTA--(Marketwire - Jan. 20, 2010) - Blackdog Resources Ltd. ("Blackdog" or the "Company") (TSX VENTURE:DOG) is pleased to announce that the Company has completed its previously announced acquisition (the "Acquisition") from Luxor Oil and Gas Ltd. ("Luxor") of a wellbore and an additional quarter section of land adjacent to the Company's light oil property at Woking, Alberta, 80 km northeast of Grande Prairie, Alberta. The Acquisition was completed on January 18, 2010 and is effective as of December 10, 2009.

Pursuant to the terms of the Acquisition, Blackdog paid $100,000 cash for the wellbore, the related surface equipment and a pipeline for gas transportation, with Luxor retaining a 5.5% gross overriding royalty ("GORR") on the well. Blackdog will have a minimum working interest of 58.33% in the wellbore, or higher should its partners decline to participate in the Acquisition and the planned work-over of the well. Blackdog plans to begin its work-over by the end of February, 2010. Prior to the acquisition, Blackdog and its partners already held the petroleum and natural gas rights to the Halfway zone in the wellbore. 

In addition, Blackdog has acquired a 100% working interest from Luxor in a quarter section of land in Woking in consideration for the issuance of 100,000 Blackdog common shares at a deemed price of $0.35 per share . The Company's modelling of the Halfway B light oil pool suggests that the trend extends through to this quarter section and may provide the Company with two additional light oil drilling targets at Woking. Luxor will retain a GORR of 7.5% on this quarter section.

Blackdog is a junior oil and gas company focused on light oil production with producing assets in Southeast Saskatchewan and Alberta.


Certain information regarding Blackdog in this news release, including but not limited to statements concerning the Company's acquisition of oil and gas assets, management's assessment of future plans and operations and expected results from operations of the Company, may constitute forward looking statements under applicable securities laws and necessarily involve various risks and uncertainties. These include, without limitation, risks associated with the failure to obtain necessary regulatory approvals, risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty and imprecision of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; marketing and transportation; loss of markets; competition from other producers; unexpected decline rates in wells; wells not performing as expected; delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources; health, safety and environmental risks; and commodity price and exchange rate fluctuations. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Blackdog, including with respect to the completion of the acquisition and the Company's planned operations. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties and as a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Although Blackdog believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Blackdog can give no assurance that they will prove to be correct. Additional information on these and other factors that could affect Blackdog's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ( The forward-looking statements or information contained in this news release are made as of the date hereof and Blackdog does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulator Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release.

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