Projects » Whitebear

Whitebear, Saskatchewan

For the year ending December 31, 2007, production from the five wells averaged 24 Barrels of Oil (BOP)/Day and ended the year producing 22 BOPD.

Given projected oil prices of around $100 WTI U.S. for light oil in 2008, the corporation expects to have a steady cash flow in the $30,000 per month range net of operating costs and royalties in 2008.

The full Chapman Petroleum Engineering Ltd. fully compliant 51-101 report on this property is located on www.sedar.com.

In the summer and fall of 2007, a private company "Privco" shot and interpreted a 3D seismic program over the property and has identified up to 3 horizontal drilling targets in the Tilston/Lodgepole formations. Under the existing agreement Blackdog has a 60% Working Interest in these targets. Privco and Blackdog anticipate drilling the first of these horizontal well during late Q2 or early Q3, 2008. These wells will qualify for a specialty royalty holiday offered by the Government of Saskatchewan on the first 48,000 barrels of light oil produced from each of these horizontal wells.

Privco has recently drilled two successful wells adjacent to the joint property that have commenced production in excess of 100 barrels per day of light crude.

Blackdog believes a successful well or wells will have an immediate material effect on the company's cash flow, production and reserves.