Blackdog Resources Ltd.
TSX VENTURE : DOG

Blackdog Resources Ltd.

May 29, 2009 13:44 ET

Blackdog Complete Acquisition of Light Oil Property at Woking

CALGARY, ALBERTA--(Marketwire - May 29, 2009) - Blackdog Resources Ltd. ("Blackdog" or the "Company") (TSX VENTURE:DOG) is pleased to announce it has completed its previously announced light oil property acquisition in Woking, Alberta about 60 km northeast of Grande Prairie. The vendor was a public company ("Pubco").

The Woking property consists of 8840 acres of land of which 3600 are net to Blackdog. This includes 1200 net acres of undeveloped land and several shut-in oil and gas wells and well bores.

A December 31, 2008 Sproule Reserve Report provided to the Company by Pubco indicates the property had a Proven Plus Probable (P Plus P) value using a 10% discount of $2,994,000 with remaining reserves under these parameters of 380,700 barrels of oil equivalent ("Boe"). Light oil accounts for 85% of the remaining Boe in place. Based on the purchase price of $150,000, Blackdog paid approximately 40 cents for each Boe in the ground.

David A. Corcoran, President of Blackdog, commented, "This acquisition represents both incredible short and long term value for our shareholders. We expect to bring 30-40 barrels of oil per day ("bopd") back on-line that will be accretive to our cash flow immediately. Pending Energy Resource Conservation Board ("ERCB") approval, we will manage down the operating costs of fluid transportation and salt water disposal by converting one of the dormant oil wells to a water disposal well. Once this approval is received, we expect to increase production to over 100 bopd of light oil from existing standing wells. These production rates are equivalent to those achieved most recently in Q4, 2008, prior to the additional wells being deemed uneconomic due to high operating costs and shut in. Blackdog has identified several infill light oil drilling locations and other gas well re-entry candidates on the property. These candidates showed several feet of oil pay previously bypassed. The immediate focus will be to restart and grow the oil field while maintaining a low operating cost environment. Future plans could include extending the water disposal program so that additional shut-in gas wells could be added to our production."

Blackdog is a junior oil and gas company with producing assets in Saskatchewan and Alberta. The Company currently has 16,732,447 Common Shares Outstanding.

FORWARD LOOKING STATEMENTS: This news release contains certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involves substantial known and unknown risks, and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include with limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing, processing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in how they are interpreted and enforced, increases in competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive from them. Readers are cautioned that the Company's operations and financial results are included in reports with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirely by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

BOE may be misleading, particularly if used in isolation. A BOE conversion of 6 MCF: 1 bbl based on an energy equivalent conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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

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