Blackhawk Resource Corp.
TSX VENTURE : BLR

Blackhawk Resource Corp.

September 21, 2010 09:15 ET

Blackhawk Resource Corp. Provides Operational Update

CALGARY, ALBERTA--(Marketwire - Sept. 21, 2010) - Blackhawk Resource Corp. ("Blackhawk" or the "Corporation") (TSX VENTURE:BLR) is pleased to announce that it's daily average production has now reached a total of 225 BOE per day, with a ratio of 85% oil and 15% gas.

Blackhawk's 100% owned water disposal facility is currently exceeding expected rates as a result of improved oil cuts. Average daily production from 3 re-activated shut-in wells is approximately 125 barrels per day of heavy oil. Installation of a free water knock out is planned to further increase the productive capabilities in the area. Blackhawk has also identified offset development drilling locations.

Construction of the BLR Bodo #1 Colony well tie-in was completed and placed on production in August 2010. Line pressure is currently restricting production to 15 BOE per day. Recent well pressure and fluid level data indicate the well will require a down hole pump to assist in the recovery of the oil. 

Blackhawk's 100% owned BLR Bodo #2 Sparky horizontal well flowed at an average rate of 150 barrels of oil per day upon initial production, but has been restricted to approximately 65 barrels a day of medium weight oil due to solution gas issues. Blackhawk has begun installation of a gas handling system that will allow the corporation to increase production, once operational. 

All barrels of oil equivalent ("BOE") conversions in this release are derived by converting natural gas to oil in the ratio of six thousand cubic feet ("Mcf") of gas to one barrel ("bbl") of oil. A boe conversion ratio of six mcf to one barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Statements in this press release may contain forward-looking information including expectations of future operations, commerciality of any gas discovered, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income and oil taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the oil and gas industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, or reservoir performance, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.

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 accuracy of this release.

Contact Information