BlackRock Says Repairs at Seal Heavy Oil Battery Completed

BlackRock Ventures reports that its Seal heavy oil battery has been repaired and is back in operation, following a fire in the main tank farm which occurred in late August. The facility is currently processing approximately 7,000 barrels of oil per day (3,500 net to BlackRock) and will be at pre-fire processing levels (8,500 barrels per day, 4,250 net to BlackRock) by the end of September. Cost of repairs is expected to be near $500,000 ($250,000 net to BlackRock). Oil production from the Seal field was temporarily shut-in while repairs were undertaken.

During the facility shut-down the Company was able to accelerate construction of the battery expansion, which will increase treating capacity to 15,000 barrels of oil per day by mid October.

BlackRock also announced that, due to drilling delays caused by wet summer weather, it has contracted a third drilling rig for the Seal area. This will allow the Company to complete its 45 well drilling program for the second half of 2004 and reach its year-end production target of 10,000 barrels of oil per day.