Press release from Marketwire
Blackdog Resources Ltd. Readies Leduc Light Oil Well for Production
Wednesday, October 19, 2011
Blackdog Resources Ltd. Readies Leduc Light Oil Well for Production08:00 EDT Wednesday, October 19, 2011CALGARY, ALBERTA--(Marketwire - Oct. 19, 2011) - Blackdog Resources Ltd. ("Blackdog" or "the Company") (TSX VENTURE:DOG) is pleased to announce that after successfully testing its Leduc Reef light oil exploration well near Sylvan Lake, Alberta, Blackdog and its partners are in the process of installing a pipeline to tie the well in for production. The pipeline has been surveyed and permitted and Blackdog and its partners expect to begin construction this week with a goal to have the well on production within 21 days. Blackdog has a 15% working interest in the well and entire section of land that the well is situated on. During limited testing over 5 days, the well flow tested at rates exceeding 225 barrels of oil equivalent per day ("boepd") (35 boepd to Blackdog) without the aid of artificial lift of any kind.The Company was only able to flow the well for just under 100 hours before Blackdog and its partners were forced to shut the well in due to exceeding the allowable limit set by the AEUB for flaring gas. The well free flowed oil with both oil cuts and produced oil increasing every day during testing. The final flow rates for oil were in the range of a 35% oil cut and over 50 barrels of oil per day. The Company expects these rates will continue to increase as due to the short period of the test, the Company has not yet recovered all the load water used during final testing process plus the load water added to the well to aid in the retrieval of lost downhole tools. The last sample showed the oil had an API of 44.1. The well strongly produced gas at constant rates of approximately 630,000 cubic feet per day (105 boepd) and 78 barrels of gas liquids per day which is why the test period was so short. The Company is very pleased with these results and has also identified 2 potential locations for follow up wells on the joint partner's land.Blackdog is a junior oil and gas company focused on the development of light and medium oil properties in Southeast Saskatchewan and Alberta. The Company has 24,578,318 Common Shares outstanding.Certain information regarding Blackdog in this news release, including management's assessment of future results, expected time of pipeline construction and tie-in operations, liquids content of expected gas production, production rates and future plans and operations, may constitute forward looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with pipeline construction and tie-in operations, general risks associated with oil and gas exploration, development, production, marketing and transportation, loss of markets, volatility of commodity prices, imprecision of reserve estimates, environmental risks, competition from other producers, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Blackdog's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements or information contained in this news release are made as of the date hereof and Blackdog does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.The term "barrels of oil equivalent" or "boe" may be misleading, particularly if used in isolation. A "boe" conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.FOR FURTHER INFORMATION PLEASE CONTACT: David A. CorcoranBlackdog Resources Ltd.President(403) firstname.lastname@example.orgNeither 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 the accuracy of this release.