BlackPearl Resources Inc.

BlackPearl Resources Inc.

October 18, 2010 11:47 ET

BlackPearl Receives Regulatory Approval for Its Mooney and Blackrod Heavy Oil Projects

CALGARY, ALBERTA--(Marketwire - Oct. 18, 2010) - BlackPearl Resources Inc. ("BlackPearl" or the "Company") (TSX:PXX) (FIRST NORTH:PXXS) is pleased to announce it has received approval from the Energy Resources Conservation Board ("ERCB") to proceed with development of the first phase of its polymer flood at Mooney and that the ERCB has approved BlackPearl's application for the construction and operation of its steam assisted gravity drainage ("SAGD") pilot at Blackrod, in the Athabasca Oil Sands.

At Mooney, engineering and design of the polymer and water handling facilities has been on-going and we plan to immediately proceed to field preparation and construction of these facilities. In addition, half of the 44 currently producing wells will be converted to injectors. Polymer injection is expected to commence during the first quarter of 2011 and we anticipate oil production response six to twelve months after initial injection.

BlackPearl is also pleased to announce that the Alberta Department of Energy has approved enhanced oil recovery status for a portion of the Mooney field, which will initially reduce the royalty burden on Mooney production volumes as a result of the flood. Initial royalty rates are expected to be approximately 10%.

At Blackrod, as a result of receiving all necessary regulatory approvals, we are planning to drill the SAGD horizontal well pair within the next 30 days, as well as begin construction of the oil handling facilities and install the previously completed steam generation equipment. BlackPearl anticipates commencement of steam injection at Blackrod before the end of the first quarter of 2011. Initial results of the pilot are expected late in 2011.

John Festival, president of BlackPearl, commenting on these recent developments, indicated that, "Receiving these approvals represents another milestone in the execution of our development plan for our three core properties. Our goal is to develop oil production in excess of 50,000 barrels per day from these properties and these regulatory approvals allow us to continue with development."

Forward-Looking Statements

Certain of the statements made and information contained herein is forward-looking statements and forward looking information (collectively referred to as "forward-looking statements") within the meaning of Canadian securities laws. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "continuous", "estimate", "expect", "may", "will", "project", "should", "predict", "targeting", "seek", "intend", "could", "potential" or similar words. In particular, this document contains forward-looking statements pertaining to the timing of project construction, the timing of initial injection of polymer and the estimated response time for the Mooney polymer flood, estimated royalty rates, the timing of initial steam injection at Blackrod and the timing of results of the Blackrod SAGD pilot.

Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized. Actual results will differ, and the difference may be material and adverse to the Corporation and its shareholders. The Company believes the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The Company's Annual Information Form, 2009 year-end Management Discussion and Analysis and other documents filed with securities regulatory authorities describes the risks, assumptions and other factors that could influence actual results and which are incorporated herein by reference. Furthermore, the forward-looking statements contained in this news release are made as of the date hereof, and the Corporation does not undertake any obligation, except as required by applicable securities legislation, to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise.

BlackPearl's Certified Advisor on First North is E. Öhman J:or Fondkommission AB.

Company Registration Number: 409596-1

Contact Information

  • BlackPearl Resources Inc.
    John Festival
    President and Chief Executive Officer
    (403) 215-8313
    BlackPearl Resources Inc.
    Don Cook
    Chief Financial Officer
    (403) 215-8313
    (403) 265-8324 (FAX)