Projects » Whitebear

Whitebear, Saskatchewan

The Whitebear property is located about 20 miles northeast of Carlyle, Saskatchewan in the prolific light oil producing area of South East Saskatchewan.

The Company has two sources of light and medium oil revenue from its Whitebear property.  The first of these is 5 legacy Tilston vertical wells that were drilled in the 1980’s and produced sporadically until being purchased by the Company in late 2005.  Since that time production has been very consistent in the 20-30 bopd range.  Three of the wells have water cuts below 90% and two above 90%, which means three of the wells generate significant cash flow above $50 WTI while the remaining two wells require oil prices above $75 WTI to be profitable.  As of September 30, 2009, Blackdog is currently producing from three vertical wells on this property.  The Company has a 100% Working Interest in these wells.

The second source of revenue from this property comes from a Souris Valley horizontal well that was drilled in August 2008 and placed on production in September, 2009.  This well commenced production above 100 bopd and has produced steadily at a predictable and expected decline rate for just over one year now.  The Company and its partner have two additional Souris Valley horizontal drilling locations that are expected to be drilled in 2010.  All of these wells qualify for a reduced royalty rate on the first approximately 38,000 barrels produced under the Saskatchewan Incentive Program so generate tremendous netbacks for the partners.  Blackdog has a 60% Working Interest in this property.