BlackRock Exceeds Year-End Production Target

In December 2004, BlackRock completed a 52 well horizontal drilling program at Seal, including 37 wells on the Central Block and 15 wells on the Eastern Block. This drilling activity resulted in BlackRock producing approximately 10,400 barrels of oil per day at the end of the year, exceeding our exit production target for 2004 of 10,000 barrels per day. Eleven of the 52 wells were drilled late in the year and therefore did not add to our end of the year production volumes. These 11 wells will be put on stream in January.

This winter, BlackRock has contracted three rigs and plans to drill 21 vertical evaluation wells and 9 horizontal test wells on the Peace River, Northern, Western and Cadotte blocks at Seal.

BlackRock is also expanding the processing capacity at its 50% owned battery facility at Seal. BlackRock has ordered the major equipment components to expand the battery capacity from 15,000 barrels per day to 23,000 barrels per day. This expansion is expected to be completed by August.

At Hilda Lake, BlackRock has retained IMV Projects, consulting engineers, to undertake the detailed engineering design and cost estimate for its Orion thermal heavy oil project, a planned 20,000 barrel per day commercial SAGD operation on the site of the successful Hilda Lake pilot. This activity will take 8 to 10 months to complete.

BlackRock has a $75 million capital program planned for 2005.

John Festival, President of BlackRock, commenting on recent activities, indicated that "we are very pleased to have exceeded our production target for 2004. Our focus for the first quarter of 2005 is to continue delineation drilling on the remaining blocks of land at Seal in order to establish development plans for these blocks, and to commence the engineering work to move the Orion SAGD project to commercial development."