Blackdog Resources Announces Non-Brokered Flow-Through Private Placement

Mon. December 08, 2008; Posted: 08:00 AM

CALGARY, ALBERTA, Dec 8, 2008 (Marketwire via COMTEX) -- DOG | Quote | Chart | News | PowerRating -- Blackdog Resources Ltd. ("Blackdog" or the "Company") (TSX VENTURE:DOG) is pleased to announce that it intends to issue on a Non-Brokered private placement basis (the "Private Placement') up to 3 million commons shares ("Common Shares") for gross proceeds of up to $1.35 million. Pursuant to the Private Placement, the Company will issue up to 3,000,000 Commons Shares on a "flow-through" basis under the Income Tax Act (Canada) ("Flow-Through Shares") at $0.45 per share. The Company may pay to certain investment professionals, a commission equal to seven per cent payable in cash. Closing of the Private Placement is expected to close on or before December 30, 2008. The price of the Private Placement represents a 12.5% premium to the closing price of the Common Shares of the Company on December 5, 2008.

Proceeds from the Private Placement will be used to expand drilling in South East Saskatchewan where the Company recently successfully drilled its first horizontal Souris Valley light oil well. The Company has a 60% working interest in the project and expects to drill additional targets in 2009. The Company also plans to drill a potential high impact Granite Wash light oil target at Evi, Alberta in 2009. The Company has a 100% working interest in the EVI target. Furthermore, the Company plans to shoot and interpret seismic on additional 100% working interest properties in South East Saskatchewan in 2009 for potential Tilston horizontal light oil prospects.

Blackdog currently produces approximately 80 boepd (90% light oil) "barrels of oil equivalent per day", generates significant positive cash flows even at the current depressed prices of $40 (U.S.) WTI per barrel, and has a working capital surplus of over $325,000, cash on hand in excess of $600,000 and one of the most efficient and tight business models in the industry.

Blackdog is a junior oil and gas company with producing properties in Alberta and Saskatchewan. The Company currently has 16,506,447 Common Shares Outstanding.

Advisory

Boe may be misleading particularly if used in isolation. A boe conversion of 6 thousand cubic feet of gas to one barrel of oil is based on an energy equivalency method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Certain information regarding the Offering may constitute forward-looking statement under applicable securities laws and necessarily involve certain risks. Specifically, the Company, may not proceed with the aforementioned exploration and development drilling, or may not complete the Private Placement which could have a negative impact on the business of the Company and its ability to meet all of its exploration and development requirements. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

SOURCE: Blackdog Resources Ltd.

Blackdog Resources Ltd. David A. Corcoran President (403) 245-1726 Email: davidcor@telus.net Website: www.blackdogresources.com

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