BLACKPEARL ADDS 180 MILLION BARRELS OF OIL RESERVES AT ITS BLACKROD SAGD PROPERTY

BlackPearl Resources SDB 

05.06.2012 08:00

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CALGARY, ALBERTA - BlackPearl Resources Inc. ('BlackPearl' or the 'Company')
(TSX:PXX) (FIRST NORTH:PXXS) is pleased to announce that it has filed an 80,000
barrel per day commercial development application with the Energy Resources
Conservation Board (ERCB) and Alberta Environment for its Blackrod Steam
Assisted Gravity Drainage (SAGD) Project in northern Alberta. The first phase
of this project is planned for 20,000 barrels of oil per day. The filing of the
commercial application is the culmination of three years of delineation
drilling, source water testing, cap rock integrity testing and a successful
SAGD pilot operation that has reached commercial production rates after 10
months of testing. The commercial application included extensive public
consultation and numerous environmental studies, including baseline testing for
air, sound, water and surface disturbance and a pro-active program to monitor
and mitigate environmental impacts. 

The project application is available for viewing on our website,
www.blackpearlresources.ca, or on the ERCB website. 

Sproule Unconventional Limited (Sproule), an independent reserves evaluator,
has completed an update to the proved plus probable reserves and contingent
resource assessment for the Blackrod project. Based on, among other items, the
delineation drilling completed this winter, performance of the pilot and the
filing of the commercial development application, Sproule has assigned 182
million barrels of proved plus probable reserves to the first phase of the
commercial project.  In addition, Sproule has ascribed a best estimate
contingent resource to the remainder of the project of 476 million barrels. 

John Festival, President & CEO of BlackPearl, commented that 'Blackrod is
obviously a very significant project for the company. The combination of
reserve and resource value attributed to the property alone is nearly $10 per
share We have operated a successful pilot for almost a year and with the
positive results achieved, as well as all of the additional technical
information gathered over the last three years, we are ready to move to the
first phase of commercial development of the property. We expect that resources
will continue to be converted into reserves as we move future phases into
commercial development.' 

The following tables summarize Sproule's estimate of the Company's reserves and
best estimate contingent resource from the Blackrod project. 



Summary of Oil and Gas Reserves - Blackrod Project

                             Bitumen   Net Present Values of Before Tax Future  
                            Reserves                 Net Revenue                
                                                  as of May 31, 2012            
                                                     Discounted at              
--------------------------------------------------------------------------------
                                         0%        5%        8%      10%    12% 
--------------------------------------------------------------------------------
                             (MMbbl)                  ($million)                
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Proved                         1.7          13        11         9      8      8
Probable                     180.1       4,397     1,740     1,035    735    519
--------------------------------------------------------------------------------
Total proved plus probable   181.8       4,410     1,751     1,044    743    527
--------------------------------------------------------------------------------

Notes:

  1. The pricing assumptions were provided by Sproule Unconventional Limited
  2. None of the Company's future production is subject to a fixed or
     contractually committed price.



Definitions:

  1. 'Proved' reserves are those reserves that can be estimated with a high
     degree of certainty to be recoverable.  It is likely that the actual
     remaining quantities recovered will exceed the estimated proved reserves.
  2. 'Probable' reserves are those additional reserves that are less certain to
     be recovered than proved reserves.  It is equally likely that the actual
     remaining quantities recovered will be greater or less than the sum of the
     estimated proved plus probable reserves.
  3. The Net Present Value (NPV) is based on Sproule Forecast Pricing and costs.
     The estimated NPV does not necessarily represent the fair market value of
     the Blackrod reserves.  There is no assurance that forecast prices and
     costs assumed in the Sproule evaluations will be attained, and variances
     could be material.



Summary of Best Estimate (P50) Contingent Resources - Blackrod Project (1)(2)

                                Gross(3)       Net Present Values of Before Tax 
                                  Heavy               Future Net Revenue        
                              Oil//Bitumen            as of May 31, 2012        
                                                         Discounted at          
--------------------------------------------------------------------------------
                                                0%     5%     8%     10%    12% 
--------------------------------------------------------------------------------
                                 (MMbbl)                  ($million)            
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
                                                                                
Best Estimate Contingent           476        10,393  3,990  2,323  1,632  1,147
 Resources                                                                      
                                                                                
--------------------------------------------------------------------------------

Notes:

  1. Contingent Resources are defined in the COGE Handbook as those quantities
     of petroleum estimated, as of a given date, to be potentially recoverable
     from known accumulations using established technology or technology under
     development, but are not currently considered to be commercially
     recoverable due to one or more contingencies. Contingencies may include
     factors such as economic, legal, environmental, political and regulatory
     matters or a lack of markets. It is also appropriate to classify as
     Contingent Resources the estimated discovered recoverable quantities
     associated with a project in the early evaluation stage.
  2. Best estimate (P50) is a classification of estimated resources described in
     the COGE Handbook as being considered to be the best estimate of the
     quantity that will be actually recovered. It is equally likely that the
     actual remaining quantities recovered will be greater or less than the best
     estimate. If probabilistic methods are used, there should be at least a 50%
     probability that the quantities actually recovered will equal or exceed the
     best estimate.
  3. '
Gross' means the Company's working interest share in the contingent
     resources of bitumen and heavy oil before deducting royalties. The Company
     has a 100% working interest at Blackrod.
  4. The amounts included in the contingent resource table do not include the
     volume and value of BlackPearl's proved and probable reserves assigned by
     Sproule to the Blackrod property.



The pricing assumptions that were used in the Sproule evaluation are summarized
below. 

Year     WTI     Edmonton Par     Western     Alberta     Inflation    Exchange 
       Cushing       Price       Canadian      AECO-C       rate         rate   
       40° API     40° API         Select       Spot                            
                                 20.5° API                                      
--------------------------------------------------------------------------------
      (US$/bbl  (CDN$/bbl)      (CDN$/bbl)   (CDN$/MMBt     (%/yr)    (US$/Cdn$)
      )                                      u)                                 
--------------------------------------------------------------------------------
2012   105.24        94.68         79.53        2.11         2.0         1.005  
2013   104.66       104.10         87.44        3.05         2.0         1.005  
2014   100.12        99.59         83.65        3.52         2.0         1.005  
2015   97.40         96.88         81.38        5.02         2.0         1.005  
2016   99.37         98.84         83.02        5.74         2.0         1.005  
2017   101.35       100.82         84.69        5.86         2.0         1.005  
2018   103.38       102.83         86.38        5.98         2.0         1.005  
2019   105.45       104.89         88.11        6.10         2.0         1.005  
2020   107.56       106.99         89.87        6.23         2.0         1.005  
2021   109.71       109.13         91.67        636          2.0         1.005  
2022   111.90       111.31         93.50        6.50         2.0         1.005  
                       Escalation rate of 2.0% thereafter                       



Forward-Looking Statements

This news release contains certain forward-looking statements and
forward-looking information (collectively referred to as 'forward-looking
statements') within the meaning of applicable Canadian securities laws.  All
statements other than statements of historical fact are forward-looking
statements.  Forward-looking information typically contains statements with
words such as 'anticipate', 'believe', 'plan', 'continuous', 'estimate',
'expect', 'may', 'will', 'project', 'scheduled', 'should', 'outlook' or similar
words suggesting future outcomes.  In particular, but without limiting the
foregoing, this news release contains forward-looking statements pertaining to
commercial production rates from the SAGD pilot, the Company's oil and gas
reserves and contingent resource for the Blackrod project, as well as the
estimated future net revenue amounts associated with these reserves and
resources. 

In addition, statements relating to 'reserves' or 'resources' are deemed to be
forward-looking statements as they involve the implied assessment, based on
certain estimates and assumptions, that the reserves and resources described
exist in the quantities predicted or estimated and can be profitably produced
in the future. 

The forward-looking statements in this news release reflect certain assumptions
and expectations by management. The key assumptions that have been made in
connection with these forward-looking statements include the continuation of
current or, where applicable, assumed industry conditions, the continuation of
existing tax, royalty and regulatory regimes, commodity price and cost
assumptions, the continued availability of cash flow or financing on acceptable
terms to fund the Company's capital programs, the accuracy of the estimate of
the Company's reserves and resource volumes and that BlackPearl will conduct
its operations in a manner consistent with past operations. Although management
considers these assumptions to be reasonable based on information currently
available to it, they may prove to be incorrect. 

By their very nature, forward-looking statements involve inherent risks and
uncertainties which could cause actual results to differ materially from those
contained in forward-looking statements.  These factors include, but are not
limited to, risks associated with fluctuations in market prices for crude oil,
natural gas and diluent; general economic, market and business conditions;
substantial capital requirements; uncertainties inherent in estimating
quantities of reserves and resources; extent of, and cost of compliance with,
government laws and regulations and the effect of changes in such laws and
regulations from time to time; the need to obtain regulatory approvals on
projects before development commences; environmental risks and hazards and the
cost of compliance with environmental regulations; aboriginal claims; inherent
risks and hazards with operations such as fire, explosion, blowouts, mechanical
or pipe failure, cratering, oil spills, vandalism and other dangerous
conditions; potential cost overruns; variations in foreign exchange rates;
diluent supply shortages; competition for capital, equipment, new leases,
pipeline capacity and skilled personnel; uncertainties inherent in the SAGD
bitumen and Alkali Surfactant Polymer recovery processes; credit risks
associated with counterparties; the failure of the Company or the holder of
licenses, leases and permits to meet requirements of such licenses, leases and
permits; reliance on third parties for pipelines and other infrastructure;
changes in royalty regimes; failure to accurately estimate abandonment and
reclamation costs; inaccurate estimates and assumptions by management;
effectiveness of internal controls; the potential lack of available drilling
equipment and other restrictions; failure to obtain or keep key personnel;
title deficiencies with the Company's assets; geo-political risks; risks that
the Company does not have adequate insurance coverage; risk of litigation and
risks arising from future acquisition activities.  Further information
regarding these risk factors and others may be found under 'Risk Factors' in
the Annual Information Form. 

Undue reliance should not be placed on these forward-looking statements.
Readers are cautioned that the actual results achieved will vary from the
information provided herein and the variations could be material.  Readers are
also cautioned that the foregoing list of assumptions, risks and factors is not
exhaustive.  Consequently, there is no assurance by the Company that actual
results achieved will be the same in whole or in part as those set out in the
forward-looking information.  Furthermore, the forward-looking statements
contained in this news release are made as of the date hereof, and the Company
does not undertake any obligation, except as required by applicable securities
legislation, to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information, future
events or otherwise. The forward-looking statements contained herein are
expressly qualified by this cautionary statement. 



For further information, please contact:



John Festival - President and Chief Executive Officer
Tel.: 403-215-8313



Don Cook - Chief Financial Officer
Tel: 403-215-8313



BlackPearl's Certified Advisor on First North is Pareto Öhman AB.

Company Registration Number:   409596-1
News Source: NASDAQ OMX



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Language:     English
Company:      BlackPearl Resources SDB
              
               
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ISIN:         SE0002060863
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