Blackdog Resources Ltd. Readies Leduc Light Oil Well for Production
19 Ottobre 2011 - 2:00PM
Marketwired
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.
Neither 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.
Contacts: Blackdog Resources Ltd. David A. Corcoran President
(403) 245-1726davidcor@telus.netwww.blackdogresources.com
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