Blackdog Resources Ltd.

Blackdog Resources Ltd.

August 11, 2008 08:00 ET

Blackdog Announces Expected Spud Date in SE Saskatchewan and Generates Record Monthly Cash Flow for June, 2008

CALGARY, ALBERTA--(Marketwire - Aug. 11, 2008) - Blackdog Resources Ltd. ("Blackdog" or the "Company") (TSX VENTURE:DOG) is pleased to announced that a drilling rig has been secured and the expected spud date is August 24, 2008 for its first light oil horizontal well on its jointly owned Whitebear property in SE Saskatchewan near the town of Carlyle. This development well is targeting the prolific Souris Valley formation. Blackdog has a 60% Working Interest in this well that is budgeted to cost approximately $1,000,000 to drill, complete and equip (net $600,000 to Blackdog). Blackdog's partner and operator of the well has had significant recent success targeting the Souris Valley formation on adjacent lands.

Blackdog further reports that operating cash flow net of all operating costs and royalties excluding General and Administrative(G &A) Costs for the month of June, 2008 exceeded $90,000. This is the highest monthly operating cash flow to date for Blackdog and further justifies the Company's strategy to focus the majority of the company's resources on the acquisition, drilling and operation of light oil prospects. Given the Company's tight G & A model, the vast majority of the Company's monthly operating cash flow is immediately available to be reinvested in future drilling or acquisitions.

Blackdog further reports that it has renewed its Revolving Operating Line with a major Canadian Chartered Bank and the total credit available been increased from $550,000 to $800,000 and the interest rate has been lowered.

Blackdog also announces that it has extended the closing date of its Non Brokered Private Placement financing to Thursday, August 14, 2008. As announced on July 8, 2008, the company proposes to issue up to four million common shares ("Common Shares") for gross proceeds of up to $1.35 million. Pursuant to the Private Placement, the Company will issue up to three million Common Shares on a "flow-through" basis under the Income Tax Act (Canada) ("Flow-Through Shares") at $0.35 per share and up to one million Common Shares at $0.30 per share. The proceeds of which will be used for exploration and development drilling on the Company's light oil properties in SE Saskatchewan and in the EVI area of Northern Alberta.

Blackdog is a junior oil and gas company with producing assets in Alberta and Saskatchewan. The company currently has 13,958,449 Common Shares outstanding.


Certain information regarding the Offering may constitute forward-looking statements under applicable securities law and necessarily involve certain risks. Specifically, the Company may not proceed with the aforementioned exploration and development drilling, or may not complete the Private Placement which could have a negative impact on the business of the Company and its ability to meet all of its exploration and development requirements. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

The TSX Venture Exchange has neither approved nor disapproved of the contents of this news release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information