Blackdog Resources Ltd.

Blackdog Resources Ltd.

March 23, 2011 08:00 ET

Blackdog Resources Ltd. Announces Improved Production Results at Girouxville

CALGARY, ALBERTA--(Marketwire - March 23, 2011) - Blackdog Resources Ltd. ("Blackdog" or "the Company") (TSX VENTURE:DOG) is pleased to provide an update on its non operated light oil property in Girouxville, Alberta, which is located approximately 160 km northeast of Grande Prairie, Alberta.

Blackdog purchased a 55% working interest ("W.I.") in two producing Granite Wash light oil wells and a 50% W.I. in a Slave Point light oil well effective June 1, 2010. The Company paid $710,000 cash and issued 100,000 common shares at a deemed price of $0.30 per share to the vendor for the property. After the closing of the purchase, minor workovers and repairs were completed on the property over the summer, including the replacement of rental storage tanks. 

Based on monthly field reports from the operator, after an initial small production decline in the month of July due to one well being shut in for long term pressure build-up and the other two wells experiencing some downtime due to the workovers, the property has now seen an increase in production on the property for five straight months from August 1, 2010 to December 31, 2010. Production rose to just over 93 barrels of light oil per day ("bopd") in December 2010, with an average of 85-90 bopd of production in fourth quarter of 2010. This is an improvement over the production in the third quarter of 2010, which averaged between 75-80 bopd.

The strong revenue and cash flows received from production to date from Girouxville have exceeded the Company's expectations and forecasts and, of particular significance, were received before the recent conflicts in the Middle East started which have caused the price of oil to rise to much higher levels over the last six weeks.

About Blackdog

Blackdog is a junior oil and gas company focused on the production of light oil assets in South East Saskatchewan and Alberta. The Company has 24,574,318 common shares outstanding.

Neither the TSX Venture Exchange nor its Regulation 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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