Blackdog Resources Ltd. Announces Intention to Purchase Two Light Oil Properties in Alberta for $13,000,000
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 08/30/13 -- Blackdog Resources Ltd ("Blackdog" or the "Company") (TSX VENTURE: DOG) is pleased to announce that it has signed two separate non-binding Letters of Intent (the "LOI's") with two separate arm's length vendors to purchase two light oil properties in Northern Alberta (the "Acquisitions"). Under the terms of the LOI's, Blackdog will purchase both properties for a cumulative total of $13,000,000 in cash. The properties ("Property A and Property B") currently produce between 260-275 boepd (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% W.I. 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 3 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.
Blackdog intends to purchase the second property ("Property B") from a Private Company ("Privco"). Property B is a 6% Non Operated Working Interest ("W.I.") in an emerging light oil play in Northern Alberta. Blackdog will be acquiring a full 6% W.I. in over 300 sections of land, all facilities, pipelines, seismic and other associated assets. The oil produced at this property is also a high quality Gilwood oil that demands prices very close to Edmonton Par pricing. Property B currently has over a dozen producing wells with all wells tied into pipelines for both oil and water shipping and disposal. The property is fully electrified resulting in very low operating costs. In excess of 30 possible future drilling locations have been identified by the Operator of the property. The current production from the property in July, 2013 based on field reports provided by Privco was 105 boepd (95% light oil). Blackdog will be obtaining a reserves evaluation report with respect to Property B prepared in accordance with NI 51-101 in due course.
David A. Corcoran, President of Blackdog stated, "Blackdog is very pleased to have identified and negotiated deals on both of these high quality light oil properties. The Company believes that by assembling multiple producing light oil properties with reduced risk but additional running room for growth and excellent financial metrics, it will be able to attract required funding from financial institutions and investors and enhance shareholder value. The successful closing of these Acquisitions would cause Blackdog to become a larger entity with higher rates of production, stronger cash flows and reserves and provide a clear roadmap for future growth."
Each of the Acquisitions remain subject to completion of due diligence, financing, board approval by both parties and the execution of definitive purchase and sale agreements, as well as approval by the TSX Venture Exchange. Blackdog intends to announce the details of the proposed financing for the Acquisitions in due course. Both Acquisitions are expected to be completed in October 2013.
About Blackdog
Blackdog is a junior oil and gas Company focused on light oil development in South East Saskatchewan and Alberta. The Company currently has 27,166,212 common shares outstanding.
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.
Certain information regarding Blackdog in this news release, including whether either or both of the Acquisitions will be completed and the expected timing thereof, as well as the number of possible future drilling locations on Property A, the expected returns on investment in re-entries on Property B and the anticipated assessment of future productive capacity of the properties to be acquired, may constitute forward looking statements under applicable securities laws. Such forward-looking statements necessarily involve a number of substantial known and unknown risks including, without limitation, risks associated with the benefits to be derived from the Acquisitions, 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 (). 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.
"Boepd" means barrels of oil equivalent per day. 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.
Contacts:
Blackdog Resources Ltd.
David A. Corcoran
President
(403) 245-1726
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Datum: 30.08.2013 - 22:15 Uhr
Sprache: Deutsch
News-ID 292606
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CALGARY, ALBERTA
Kategorie:
Oil & Gas
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