Blackdog Resources To Purchase Alberta Light Oil Properties

To purchase two light oil properties in N. Alberta currently producing between 260-275 BOE/d.

Blackdog Resources Ltd. (Toronto Venture: DOG) is pleased to announce that it has signed two separate non-binding letters of intent (LOI’s) with two separate arm's length vendors to purchase two light oil properties in Northern Alberta. Under the terms of the LOI's, Blackdog will purchase both properties for a cumulative total of $13,000,000 in cash. The properties currently produce between 260-275 barrels of oil equivalent per day (97% light oil).

Blackdog intends to purchase the first property (Property A) from a public company (Pubco). Property A has both operated and non-operated wells that the company will purchase. On average, the company will have a 25-50% working interest in the wells it is purchasing. Property A is located in a different area of Northern Alberta than Property B. The oil produced at Property A comes from three different formations, the Granite Wash, Gilwood and Slave Point. All of these oils are high quality light oils that demand prices very close to listed Edmonton Par pricing. The company has identified multiple low cost, low risk re-entries into existing well bores where it expects to yield high returns for low capital investment.