Blackdog Fetches Production Increase
Calgary-based Blackdog Resources Ltd. announced the results of its 4th quarter 2006 drilling program. During the quarter, Blackdog participated in the farm-in drilling of 3 (0.45 net) wells; 2 (0.30 net) were exploration wells and 1 (0.15 net) was a development well. The farm-in drilling program had a 100% success rate with all three wells drilled, cased, tested and currently awaiting tie-in to nearby pipelines.
The Harmattan 6-22 Development well tested at gas rates of up to 1.6 Million cubic feet per day ("mcfpd") with associated liquids of 40 Barrels of Oil per day ("bopd"). The Crystal 2-6 Exploration well tested gas rates of up to 1.7 mcfpd with associated liquids of 35 bopd. The Breton 3-29 Exploration well tested at gas rates of 1.0 mcfpd with associated liquids of 25 bopd. By paying 25% of all costs to completion on each of the three wells, Blackdog has now earned a 15% interest in each of the three wells.
Blackdog estimates a net production potential to Blackdog of 90-110 Barrels of Oil Equivalent per day ("boepd") based on test rates and estimates of processing plant capacities and good production practices.
Currently, Blackdog produces approximately 28 bopd from its 100% owned Whitebear, Saskatchewan light oil property with monthly cash flow of approximately $25,000 CDN at $60U.S.(WTI).
With the closing of Blackdog's recent Flow-Through financing of gross proceeds of $989,000, Blackdog entered 2007 with working capital, in excess of $1.25 million CDN and no debt. Based on current commodity prices, Blackdog expects the three new wells to add an additional $100,000 CDN of monthly cash-flow with little additional overheard expense to the corporation.
Blackdog is currently finalizing its 2007 winter and spring drilling programs and expects to make further announcements with specific details in the near future.
- Blackdog Preps to Drill Well in Alberta (Sep 02)
- Blackdog Commences Drilling First Cardium Well (Feb 09)
- Blackdog Starts-Up Horizontal Light-Oil Production from Saskatchewan Well (Oct 07)