Blackdog Resources Ltd.
TSX VENTURE : DOG

Blackdog Resources Ltd.

December 07, 2010 08:00 ET

Blackdog Resources Ltd. Announces $999,000 Non Brokered Flow-Through Financing, Updates Woking Winter Work Program

CALGARY, ALBERTA--(Marketwire - Dec. 7, 2010) - Blackdog Resources Ltd. ("Blackdog" or "the Company") (TSX VENTURE:DOG) is pleased to announce that it intends to complete a Non-Brokered private placement (the "Private Placement") of up to 2,775,000 Common Shares to be issued on a "Flow -Through" basis ("the Flow-Through Shares") at $0.36 per share for gross proceeds of up to $999,000. The Company may pay, to certain investment professionals, commissions or finders' fees of 8% of the gross proceeds in cash and 8% in broker warrants. The Private Placement is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange and is expected to close on or before December 31, 2010.

Proceeds from the Private Placement will be used to fund activities eligible for Canadian Exploration and Development Expenses, to expand the Company's interests in several of its light oil properties at Woking, at Evi and in Pembina. The proceeds from the sale of the Flow-Through shares will be used to incur eligible Flow-Through expenditures. Members of the Company's management team plan to participate in the private placement.

The Company is also pleased to announce an update on its 2011-2011 Winter Work over program at Woking, Alberta. The Company has re-entered its first well of the program and swabbed out approximately 40 barrels of light oil from the wellbore before isolating and swabbing independently the Upper and Lower Intervals of the Halfway formation. Due to the current high demand for heavy equipment and shortage of supply in the Grande Prairie area, the Company has now been waiting for over 5 days for equipment to arrive on site to perform an acid stimulation. The Company expects equipment to arrive on site later this week so that the well can be acidized and further evaluated.

Blackdog is a junior oil and gas company focused on light oil production in Alberta and South East Saskatchewan. The Company currently has 21,268,687 common shares outstanding.

This press release contains forward-looking statements. More particularly, this press release contains forward-looking statements related to the anticipated closing of the Private Placement, the use of proceeds there from and the tax treatment of the Flow-Through Shares. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Blackdog, including: expectations and assumptions concerning receipt of required regulatory approvals and the satisfaction of other conditions to the completion of and use of proceeds from the Private Placement. Although the Company 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. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals or satisfy the conditions to closing of the Private Placement or the failure to incur qualifying expenditures as planned. Additional information on these and other factors that could affect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements contained in this document are made as of the date hereof and Blackdog undertakes no 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 Regulations Service Provider (as that term is defined by the TSX Venture Exchange accepts responsibility for the adequacy or accuracy of this release.

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