BlackRock Makes Heavy Oil Discovery at Chipmunk

BlackRock Ventures has made a new heavy oil discovery at Chipmunk, in northern Alberta. Chipmunk is located approximately 15 miles southeast of BlackRock's Seal project, in the Peace River oilsands area.

BlackRock and its partner, Talisman Energy Canada, have completed three successful vertical wells at Chipmunk. These wells have been producing at a combined rate of 960 barrels of 11 degrees API oil per day from three separate reef-like structures in the Mississippian Pekisko Formation. The first well was drilled in December 2003 and has produced, on an intermittent basis, over 45,000 barrels of oil to date. In our independent oil and gas reserves report as at December 31, 2004 Sproule Associates Limited assigned 655,000 gross barrels of reserves to the first two wells drilled at Chipmunk.

These reef-like structures, known as Waulsortian mounds, occur along a southwest to northeast linear trend approximately 6 miles wide and 50 miles long. BlackRock and its partner have acquired 65,000 acres of land along this trend. Based on 470 kilometers of 2-D seismic, the Company has identified 78 reef-like anomalies on this acreage. BlackRock's average working interest at Chipmunk is 55%.

Tim Kozmyk, Vice-President Exploration of BlackRock, commenting on the discovery indicated that "we have been working on Chipmunk for 5 years and we are optimistic that it will be another high impact heavy oil play for BlackRock. BlackRock and Talisman are currently undertaking a $2.5 million 3D seismic program as a precursor to an expanded exploration and development drilling program that will commence later this year."

The discovery is within six miles of BlackRock's Seal operated pipeline which will enable BlackRock to make use of nearby heavy oil infrastructure.