Blackdog Resources Ltd.

Blackdog Resources Ltd.

March 24, 2010 08:00 ET

Blackdog Resources Ltd. Increases Producing Light Oil Well Count at Woking

CALGARY, ALBERTA--(Marketwire - March 24, 2010) - Blackdog Resources Ltd. ("Blackdog" or "the Company") (TSX VENTURE:DOG) is pleased to provide an update on its operations at its light oil property at Woking, Alberta, 80 kilometres Northeast of Grande Prairie.

The Company successfully activated its Enhanced Oil Recovery ("EOR")/Salt Water Disposal ("SWD") well on March 1, 2010. Since that date the company has been successfully disposing of approximately 200 barrels of water per day into the EOR/SWD. The Company is very pleased with the performance and simplification process of using the EOR/SWD and intends to increase its capacity and workload significantly over time as additional production wells come on line.

In conjunction with the activation of the EOR/SWD, the Company also commenced production from its third well (5-15) on March 1, 2010. Without the EOR/SWD, 5-15, would likely have been uneconomic due to its high water cut as the operating costs to truck the water off the lease would have been prohibitive. Blackdog has a 95.55% Working Interest ("W.I.") in this well. Blackdog expects this well to produce on a sustained basis between 30-40 barrels of oil per day ("bopd") once the well stabilizes.

The Company is in the final stage of equipping its fourth well, (16-16), and Blackdog expects this well to be on production within the next 3 to 5 days. Blackdog has a 95.55% W.I in the well. Both wells 5-15 and 16-16 only required surface equipment for reactivation, no down hole work was required.

During the month of March, the Company has also undertaken a major re-entry program on well 11-21. Prior to commencing work on this well, which was originally purchased in January, 2010, the Company increased its W.I. in the well by purchasing an additional 8.33% from a public company in February, 2010. Blackdog was initially required by the Energy Resources Conservation Board ("ERCB") to abandon two uneconomic lower gas zones that were drilled and perforated by a previous operator. Blackdog then perforated the target Halfway light oil zone. The well swabbed a combination of light oil and water and is currently being equipped for production. The oil was delivered to a nearby facility and sold. Blackdog expects this well to be producing before March 31, 2010 as it requires only the installation of a pump jack and otherwise was purchased fully equipped. The Company has a 91.66% W.I. in this well. The 11-21 well will qualify for the reduced Alberta royalty rate of 5% for its first year of production. The Company was also notified by the Ministry of Energy in December, 2009, that well 13-15 which commenced production in October, 2009 also qualifies for the reduced Alberta royalty rate of 5% for its first year of production.

David A. Corcoran, President and CEO of Blackdog commented, "The commencement of the EOR/SWD for disposal of our water at Woking is a critical component in our drive to lower our operating costs to less than $25 per barrel. We continue to bring wells online at Woking as part of our execution of a carefully planned and defined strategy. We have much more work yet to do at Woking but we are delighted to have added 3 more producing wells and our EOR/SWD during Q1, 2010. We look forward to continuing our growth momentum during the next quarter and beyond."

About Blackdog

Blackdog Resources Ltd. is a debt free, positive cash flow generating junior oil and gas company focused on light oil production in South East Saskatchewan and Alberta. The Company currently has 20,968,687 Common Shares Outstanding.

Certain information regarding Blackdog in this news release, including management's assessment of future plans and operations and productive capacity of the wells, may constitute forward looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, production, marketing and transportation, loss of markets, volatility of commodity prices, imprecision of reserve estimates, environmental risks, competitions from other producers, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Blackdog's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ( The forward-looking statements or information contained in this news release are made as of the date hereof and Blackdog does not undertake any 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.

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