Blackdog Resources Ltd.
TSX VENTURE : DOG

Blackdog Resources Ltd.

December 08, 2006 13:43 ET

Blackdog Announces $1,375,000 Flow-Through Financing

CALGARY, ALBERTA--(CCNMatthews - Dec. 8, 2006) -

THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES

Blackdog Resources Ltd. ("Blackdog") (TSX VENTURE:DOG) is pleased to announce that it has entered into an engagement letter with Blackmont Capital Inc. ("Blackmont") pursuant to which Blackmont has agreed, subject to completion of satisfactory due diligence, to sell on a "commercially reasonable efforts" basis, up to a maximum of 2,500,000 flow-through common shares ("Flow-Through Shares") of Blackdog at an issue price of $0.55 per Flow-Through Share, resulting in gross proceeds of up to $1,375,000 (the "Offering"). The Offering is expected to close no later then December 29, 2006 and the Flow-Through Shares will be subject to a four month hold period from the closing date. The net proceeds from the sale of the Flow-Through Shares will be used to incur eligible Canadian exploration expenses prior to December 31, 2007.

Blackdog has agreed to pay Blackmont a commission equal to 8% of the gross proceeds raised, as well as the issuance of agent options entitling Blackmont to purchase up to such number of common shares as is equal to 8% of the number of Flow-Through Shares issued under the Offering, exercisable for a period of one year from closing at $0.55 per share.

Blackdog has recently agreed to terms with a private oil and gas company ("Privco") to participate in three distinct farm-in agreements. Privco will act as the operator on all three AMI agreements.

In Crystal, Alberta, Blackdog is paying 25% of all costs to completion or abandonment in an exploration gas well to earn a 15% interest in an Area of Mutual Interest ("AMI') between the parties. This multi zone well was spud on October 13, 2006 and after a review of the logs, the well was cased. The well is now being completed and pending a successful completion will be tied-in to a nearby pipeline. A successful completion may lead to more wells within the AMI in 2007.

In Breton/Pembina, Blackdog is paying 25% of all costs to completion or abandonment in an exploration gas well to earn a 15% interest (subject to a 10% Gross Overriding Royalty) in an AMI between the parties. This multi zone well was spud on November 7, 2006 and after a review of the logs, the well was cased. The well is now being completed and pending a successful completion will be tied into a nearby pipeline. A successful completion may lead to more wells within the AMI in 2007.

In Harmattan, Alberta, Blackdog is paying 25% of all costs to completion or abandonment in a high impact, development gas/oil well to earn a 15% interest in an AMI between the parties. This 2400 metre well was spud on November 19, 2006 and after a review of the logs, the well was cased. The well is now awaiting completion and pending a successful completion will be tied into nearby pipelines. A successful completion may lead to more wells within the AMI in 2007.

Blackdog is a Calgary-based, junior resource company engaged in the exploration, development and production of natural gas and oil in the Western Canadian Sedimentary Basin.

Forward Looking Statements - This news release contains statements about future events that are forward looking in nature and, as a result, are subject to certain risks and uncertainties such as changes in plans or the occurrence of unexpected events. Actual results may differ from the estimates provided by management.


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy for accuracy of the contents of this press release.

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