Blackdog Resources Ltd.

Blackdog Resources Ltd.

September 17, 2009 08:00 ET

Blackdog Resources Ltd. Initiates Light Oil Production and Development Program at Woking

CALGARY, ALBERTA--(Marketwire - Sept. 17, 2009) - Blackdog Resources Ltd. ("Blackdog" or "The Company") (TSX VENTURE:DOG) is pleased to announce the commencement of a light oil development program on the Company's property at Woking, Alberta located approximately 60km north of Grande Prairie. The Woking property consists of 8840 gross acres (3600 net to Blackdog), including working interests in 13 standing wells and/or abandoned wellbores.

Since closing the Woking acquisition on June 1, 2009, the Company has completed an extensive financial, geological and operational assessment of the property. The potential exists for the Company to develop this property into a several hundred barrel per day ("bopd") producing light oil property. The Company believes that is has now developed a comprehensive well-plan to achieve these production goals with attractive operating netbacks.

After an extensive technical review and consultation with all related local parties in the Woking area, the Company has applied to the Energy Resource Conservation Board ("ERCB") to re-enter an abandoned well for conversion into an Enhanced Oil Recovery ("EOR")/Salt Water Disposal ("SWD") well. This will cut trucking costs on the property by over 90 per cent and eliminate water disposal costs entirely. Previously, the water had been shipped almost 100 km one way and disposed using a third party's facility. The water drive is also expected to enhance and increase the amount of light oil recoverable from the Halfway oil pool. Other Halfway oil pools in the area with similar types of injection systems have seen their recovery increase by 30-50%. Two independent studies have determined the amount of Original Oil in Place ("OOIP") is approximately 10 million barrels. Prior to Blackdog's acquisition of the property, only approximately 500,000 barrels (or 5%) of the oil has been recovered. Blackdog believes the potential exists to recover in excess of 1,000,000 additional barrels of light oil.

The Company intends to initiate production from between 8-11 wells before the end of 2009. The first of these wells (6-21-75-4) was recently reworked and put on line on September 8, 2009 with a low water cut. The Company has a 58% Working Interest ("W.I.") in this well which is already contributing significantly to the cash flow of the Company.

The Company expects to be making ongoing announcements as it aggressively proceeds with its Woking Development Plan over the coming months.

Blackdog is a junior oil and gas company with a focus on light oil production in Alberta and South East Saskatchewan. The Company currently has 16,732,447 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 or 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, of 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 can be accessed through the SEDAR website ( All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety 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 law.

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

Contact Information