Blackhawk Resource Corp.
TSX VENTURE : BLR

Blackhawk Resource Corp.

November 29, 2010 18:12 ET

Blackhawk Resource Corp. Reports Vesting of 150BOE/D Performance Rights

CALGARY, ALBERTA--(Marketwire - Nov. 29, 2010) - Blackhawk Resource Corp. ("Blackhawk" or the "Corporation") (TSX VENTURE:BLR), is pleased to announce the vesting of the 150 BOE/D performance rights issued to former Black Bore Exploration Ltd. shareholders as part of an amalgamation agreement dated July 31, 2009 between Black Bore Exploration Ltd. and a wholly owned subsidiary of Blackhawk Resource Corp.

Pursuant to the Rights Certificates common shares become issuable in the event the Total Lands Production Factor exceeds one hundred and fifty (150) BOE/d for three (3) consecutive production months on a monthly average basis. Total Lands Production Factor means the sum of the production from Black Bore lands and 50% of the production from any lands acquired subsequent to the amalgamation.

Blackhawk's monthly average production has exceeded 150 BOE/D from Black Bore lands for the months of August, September and October 2010. In accordance with the terms of the Rights Certificates the Corporation will be issuing approximately 4,616,802 common shares of the Corporation upon conversion of the Rights Certificates. Performance rights holders need take no further action to effect the conversion of their rights and share certificates will be mailed to each performance rights holder's address on record without action.

Post conversion of the150 BOE/D performance rights Blackhawk will have 60,039,144 common shares issued and outstanding.

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