Blackdog Resources Ltd.

Blackdog Resources Ltd.

July 15, 2010 08:00 ET

Blackdog Resources Ltd. Finalizes Girouxville Light Oil Acquisition, Increases Credit Facility

CALGARY, ALBERTA--(Marketwire - July 15, 2010) - Blackdog Resources Ltd. ("Blackdog" or the "Company") (TSX VENTURE:DOG) is pleased to announce that the Company has closed its purchase (the "Acquisition") of non operated interests in 3 light oil wells in Girouxville, Alberta from Guardian Exploration Inc ("Guardian"). The Company paid Guardian $710,000 in cash plus 100,000 Blackdog common shares with a deemed value of $0.30 per share, for a total value of $740,000 plus normal industry closing adjustments. The wells are producing at a rate of approximately 90 barrels of light oil per day ("bopd") net to Blackdog. The Acquisition is effective as of June 1, 2010.

The Company believes that the property has an additional seismically defined high impact Granite Wash light oil drilling location. The Company intends to further define this location and may participate in the drilling of an additional well later in 2010. Blackdog has a 55% working interest ("W.I.") in this prospective location.

The completion of the Acquisition has received conditional approval of TSX Venture and is subject to its final approval, which Blackdog expects to receive after completion of the required filings.

The Company is also pleased to announce that its credit facility with a major Canadian financial institution has been increased from $800,000 to $2,000,000 with a new interest rate of prime plus 2%. This reflects a 0.5% decrease in interest rate from the Company's previous year's facility rate.


Blackdog Resources Ltd. is a junior oil and gas company headquartered in Calgary, Alberta that is focused solely on the acquisition and exploitation of light oil properties in Alberta and Saskatchewan.

This press release contains forward-looking statements. More particularly, this press release contains statements concerning: the receipt of TSX Venture approval of the transaction; and management's assessment of future productive capacity of the properties. The forward-looking statements are based on certain key expectations and assumptions made by Blackdog including the timing of receipt of required approvals; and the reliability of seismic and other data used to identify future drilling locations.

Although Blackdog believe 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 no assurance can be provided 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, risks that the required approvals are not obtained on terms satisfactory to the parties or at all and risks that the seismic and other data pertaining to the properties is imprecise.

The forward-looking statements contained in this press release 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 Regulator 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.

Contact Information