Blackdog Resources Ltd.

Blackdog Resources Ltd.

February 09, 2010 08:00 ET

Blackdog Resources Ltd. Updates Woking Light Oil Activity, Completes Injectivity Testing on Enhanced Oil Recovery (EOR) Well

CALGARY, ALBERTA--(Marketwire - Feb. 9, 2010) - Blackdog Resources Ltd. ("Blackdog" or the "Company") (TSX VENTURE:DOG) is pleased to provide a comprehensive update of its activities on its Woking light oil property, 80 km northeast of Grande Prairie, Alberta.

Blackdog commenced its $1.5 million capital program at Woking on December 15, 2009. The Company's first project was to do a work-over on well 2-15. After the work-over was completed, the well swab tested as expected with a combination of free-flowing light oil and water. The well was left standing pending the completion of the Enhanced Oil Recovery ("EOR")/Salt Water Disposal ("SWD") well.

Between Christmas and New Year's, the Company initiated an extensive re-entry of abandoned well 6-16 to convert it to an EOR/SWD well. The well has recently undergone extensive injectivity testing and temperature logging which are requirements of the Energy Resources Conservation Board ("ERCB"). The Company is delighted to report that the EOR/SWD tested beyond the requirements the Company will have for its complete program at Woking. The Company has now submitted all these findings to the ERCB for their final approval which it expects to receive in the next 2-3 weeks.

In anticipation of the EOR/SWD approval, the Company intends to immediately equip for production testing four standing wells that require only pump jacks and surface equipment. The first of these wells, 5-15, is being equipped this week and is expected to be production tested next week. The Company anticipates that the three other standing wells will be equipped for production testing at a rate of about 1 every 14 days, depending on weather. The Company has a 95.45% Working Interest ("W.I.") on all 4 of these wells.

The Company has also sent out Notices to its partners on well 11-21 and intends to begin a work-over on this well by the end of February, 2010. If the work-over is successful, this well will also be put on line in March, 2010. In total, Blackdog, which currently has 2 producing wells at Woking, may have as many as 7 producing oil wells online before spring breakup. The Company will then wait until after spring breakup to commence the second phase of its capital program which will include several additional re-entries and/or new drilling locations.

David A. Corcoran, President of Blackdog, commented, "We are very pleased with the results of our program at Woking over the last 6 weeks. Both our technical team in Calgary and our crew on the ground at Woking have done an excellent job to move our project forward in a timely and cost efficient matter. The successful activation of abandoned well 6-16 into an EOR/SWD is a critical component of our strategy to lower our future operating costs, and based on the results of our injectivity tests, we are moving ahead expeditiously to equip wells for production so that once final approval from the ERCB is received, we will have no delays in increasing our production and cash flow."

About Blackdog

Blackdog Resources Ltd. is a junior oil and gas company focused on light oil production in South East Saskatchewan and Alberta. The Company has in excess of $1,000,000 in working capital, an unused bank line of $800,000 and generates significant positive cash flow on a daily basis. 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, competition 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.

The term "BOE" may be misleading, particularly if used in isolation. In accordance with National Instrument 51-101, a BOE conversion ratio for natural gas of 6 mscf: 1 bbl has been used which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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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