Under the terms of the agreement, Blackdog will pay Guardian $710,000 cash and 100,000 Blackdog common shares at a deemed price of $0.30 per share to receive a 55% working interest in two producing Gilwood light oil wells and a 50% working interest in one producing Slave Point light Oil well.
The wells produce at a stabilized aggregate rate of approximately 90 barrels of oil per day (bopd) net to Blackdog. The operator of the wells is a Canadian public oil and gas trust company.
In addition, Blackdog believes that the property has an additional seismically defined high impact Granite Wash light oil drilling location. The company will have a 55% working interest in this prospective location. Pending completion of the transaction, the company intends to further investigate drilling an additional well later in 2010.
Blackdog intends to close the transaction no later than July 15, 2010 with an effective date of June 1, 2010.
