Blackdog Resources Ltd. has entered into negotiations with a private company to drill up to 3 horizontals wells supported by recently completed 3D seismic on its Whitebear property near Carlyle in Southeast Saskatchewan.
Under the existing pooling agreement, Blackdog has a 60% working interest and Privco has a 40% working interest in the proposed wells. The final working interest terms are subject to negotiation.
Privco has recently drilled a horizontal well immediately adjacent to the Whitebear property that has tested at approximately 150 barrels of light oil per day. The first joint well is anticipated to be drilled post spring breakup in May/June of 2008.
Blackdog President David A. Corcoran comments, "Southeast Saskatchewan has become a very hot area for horizontal drilling given the royalty holiday on up to the first 48,000 barrels of oil per well, the extremely long expected producing life of these wells which can be between 25-40 years, the high prices received for the valuable light oil produced, the easy year round access and the solid infrastructure that is already in place to handle the oil and water from these wells. We look forward to drilling our first well this spring and pending success from this well additional wells later in the year."
Blackdog has cased its farm-in oil well drilled in Pembina, Alberta in December, 2007 as a potential oil well. Testing continues in two zones of interest in the well. Blackdog has now earned a 12% working interest in two sections of land pertaining to the drilling of well.
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