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Press release from Marketwire

Blackdog Resources Ltd. Announces Year Over Year Revenue Increase of 45%

Monday, May 07, 2012

Blackdog Resources Ltd. Announces Year Over Year Revenue Increase of 45%08:00 EDT Monday, May 07, 2012CALGARY, ALBERTA--(Marketwire - May 7, 2012) - Blackdog Resources Ltd. ("Blackdog" or "the Company") (TSX VENTURE:DOG) is pleased to provide a summary of its operations further to its recently filed 2011 financial results.2011 was a solid year of growth for the Company on all its key business metrics. Management of the Company is pleased with its results during a year that was highlighted by challenging operational conditions due to extreme cold weather during Q1 2011, followed by an extended breakup season due to heavy rains, particularly in Northern Alberta and South East Saskatchewan, complex negotiations with its joint venture partners, and fluctuating oil and natural gas prices.For the year ending December 31, 2011, the Company increased its revenue to $4,002,208 (2010 - $2,754,659) which represented a 45% year over year increase. The Company increased its operating netbacks to $1,243,885 (2010 - $827,008) which represented a 50% year over year increase. Cash flow from operations increased to $613,970 (2010 - $279,021) which represented a 119% year over year increase. The Company achieved these increases notwithstanding that the Company experienced a 63% increase in its yearly royalty charges to $1,020,023 (2010 - $626,327) and had a 48% increase in its production and processing costs, primarily due to inclement weather, to $1,920,024 (2010 - $1,301,324). Daily production increased to 122 boepd (98% light oil) from 106 boepd (98 % light oil) in 2010, representing a 15% increase. Management believes that the Company did not realize its true production potential in 2011 but due to all these unforeseen problems that caused multiple non scheduled shut in of production is satisfied with the end results.Blackdog's year-end reserves evaluation of its oil and gas properties with an effective date of date of December 31, 2011 (the "Blackdog Reserve Report") was prepared by an independent evaluator in accordance with the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 - Standards of Disclosure of Oil and Gas Activities ("NI 51-101").Under the Blackdog Reserve Report, the Company's net present value from estimated future net revenue (before deduction of income tax and discounted at 10%) of its proved plus probable reserves increased to $10,415,700 (as at December 31, 2011) from $8,464,400 (as at December 31, 2010), representing a year over year increase of 23%. Management is also satisfied in these results given the 45% revenue gain the Company achieved and our record Operating Netbacks and Cash flows.For a comprehensive quarter by quarter review of the Company's 2011 activities please refer to the Company's management discussion and analysis and audited financial statements filed on SEDAR at In addition, the Company announces that it has filed its Form 51-101F1 Statement of Reserves Date and Other Oil and Gas Information, Form 51-101F2 Statement of Reserves Data by Independent Qualified Reserves Evaluator and Form 51-101F3 Report of Management and Directors on Oil and Gas Disclosure on SEDAR.About BlackdogBlackdog Resources Ltd. is junior oil and gas Company focused on the production of light and medium oil in South East Saskatchewan and Alberta. The Company has 27,166,212 Common Shares outstanding.Certain information regarding Blackdog in this news release, including management's assessment of future plans, operations and production may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, 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 ( 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.For the purpose of calculating unit costs, natural gas volumes have been converted to a barrel of oil equivalent ("BOE") using six thousand cubic feet equal to one barrel unless otherwise stated. A BOE conversion ratio of 6:1 is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. BOEs may be misleading, particularly if used in isolation. Net present value of future net revenue does not represent fair market value of the reserves. There is no assurance that the forecast prices and cost assumptions will be attained and variances could be material.FOR FURTHER INFORMATION PLEASE CONTACT: David A. CorcoranBlackdog Resources Ltd.President(403) 245-1726 or (403) 703-7127 (c)davidcor@telus.netwww.blackdogresources.comNeither 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.