2010-07-28-2010-07-22

To merge into Alberta oil-focused E&P, with 100% interests in more than 38 sections of land.

Ranger Energy Ltd. (Toronto Venture: RGG) and Blackhawk Resource Corp. (Toronto Venture: BLR) report that the two companies will merge to focus on the Viking and Sparky formations in Alberta for an undisclosed price, with each Ranger and Blackhawk shareholder receiving a share of the new company.

The combined entity will hold primarily 100% interests in more than 38 sections of land, with more than 80 potential drilling locations. Pro forma, the company will have current production of approximately 125 barrels of oil equivalent per day, which is expected to increase to more than 250 barrels of oil equivalent per day (70% oil, 30% gas) by July 31. Current drilling programs include horizontal locations in both the Viking and Sparky formations.

Additionally, Ranger plans to acquire a 100% interest in approximately 15 sections of land, with Cardium and Viking rights adjacent to its existing 8.75 section block from a private company for approximately $5.5 million. The combined 23.25 section block contains a highly prospective Viking horizontal oil project. Ranger has identified 20 horizontal drilling locations near existing Viking oil production and is committed to drill 2 horizontal wells.

Blackhawk holds more than 15 net sections and recently completed its first horizontal Sparky oil well. The company also has interests in producing properties in Wood River and Queenstown in Alberta.