BlackPearl Updates on Year-End Oil and Gas Reserves

BlackPearl Resources has provided the results of its 2009 year-end oil and gas reserves evaluation and to provide an update of the Company's current oil and gas production.

Highlights include:

  • Total proved reserves were 11.6 MMboe, an increase of 10%; proved plus probable (2P) reserves of 23.6 MMboe;
  • Net present value of 2P reserves (discounted at 10% before tax) increased 19%, to $437 million;
  • Proved plus probable reserve life index of 12.2 years based on Q4 2009 production;
  • Recent drilling at Onion Lake resulted in current company production of 6,400 boe per day, a 26% increase from Q3 production.

Oil and Gas Reserves

The following tables summarize certain information contained in the independent reserves report prepared by Sproule Associates Limited ("Sproule") as of December 31, 2009. The report was prepared in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGE") and National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Additional reserve information as required under NI 51-101 will be included in the Company's Annual Information Form which will be filed on SEDAR later this month.

John Festival, President of BlackPearl, commenting on the new reserves evaluation indicated that, "The 2009 reserves are in-line with our expectations. Overall proved plus probable reserves are down slightly due to reserves that were produced in 2009; however, we were able to convert a significant amount of probable reserves to proved reserves as a result of our 2009 activities. While current reserves are important, we are working on some larger, longer term projects that will require additional development before reserves are recognized. This includes our SAGD projects at Blackrod and Onion Lake, where no reserves from thermal recovery have been booked."