BlackPearl Resources Inc.
BLACKPEARL ANNOUNCES 2013 YEAR-END RESERVES AND CONTINGENT RESOURCE ESTIMATES AND PROVIDES PRODUCTION UPDATE

BlackPearl Resources Inc. 

30.01.2014 23:04

Dissemination of a Adhoc News, transmitted by DGAP - a company of EQS Group
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The issuer is solely responsible for the content of this announcement.

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CALGARY, ALBERTA - BlackPearl Resources Inc. ('BlackPearl' or the 'Company')
(TSX:PXX) (NASDAQ OMX Stockholm:PXXS) is pleased to announce the results of its
2013 year-end oil and gas reserves evaluation, contingent resource evaluation
and to provide an operations update on the Company's current activities. 



Highlights include:

  -- 302% increase in proved reserves to 64 million barrels of oil equivalent;
     the increase was primarily attributable to the initial recognition of
     reserves for the Onion Lake thermal project once regulatory development
     approval was obtained;
  -- 36% increase in total proved and probable reserves to 291 million barrels
     of oil equivalent;
  -- Increased the net present value, before tax, discounted at 10% ('NPV10'),
     of our proved reserves by 197% to $733 million and increased the NPV10 of
     our proved plus probable reserves by 89% to $2.2 billion;
  -- A total of 631 million barrels of contingent resources (best estimate)
     assigned to our 3 core properties with a NPV10 of $2.1 billion;
  -- Our largest property is the Blackrod SAGD project with proved and probable
     reserves of 182 million barrels and best estimate contingent resources of
     566 million barrels of oil, with potential production reaching 80,000
     barrels of oil per day;
  -- Our Onion Lake thermal project was assigned proved reserves of 47 million
     barrels of oil and proved plus probable reserves of 80 million barrels,
     with peak production potential of 12,000 barrels of oil per day. An
     additional 28 million barrels of best estimate contingent resource was
     attributed to the Onion Lake thermal project;
  -- Achieved our 2013 production guidance for 2013 with Q4 2013 production of
     10,454 boe/day, a 15% increase compared to Q4 2012; full year average
     production of 9,730 boe/day in 2013, a 4% increase from 2012.



John Festival commenting on the 2013 reserves evaluation indicated that 'We are
pleased to have met our year end production targets, but more important is the
pattern of reserve recognition we have established over the past 3 years. This
reserve recognition resulted from a deliberate plan of validating our core
projects through delineation drilling, pilot results and regulatory approval.
Mooney is now a successful commercial ASP flood and we look forward to our
first phase of thermal development at Onion Lake. 

The net present value (discounted at 10%, BT) Sproule assigned to our proved
reserves represents $2.44 per common share and on a proved plus probable basis
the value represents $7.30 per share. The value Sproule has assigned to best
estimate contingent resources represents an additional $6.99 per share. We
believe more of these values will be recognized as we proceed with development
of our large thermal projects.' 



Oil and Gas Reserves

The following tables summarize certain information contained in the independent
reserves report prepared by Sproule Unconventional Limited ('Sproule') as of
December 31, 2013. The report was prepared in accordance with definitions,
standards and procedures contained in the Canadian Oil and Gas Evaluation
Handbook ('COGE Handbook') and National Instrument 51-101, Standards of
Disclosure for Oil and Gas Activities ('NI 51-101'). Additional reserve
information as required under NI 51-101 will be included in the Company's
Annual Information Form which will be filed on SEDAR on or before March 31,
2014. 



Summary of Oil and Gas Reserves

(Company interest, before        Heavy  Bitume     Total  Natura    2013    2012
 royalties)                        Oil       n     Crude       l   Total   Total
                                                     Oil     Gas                
--------------------------------------------------------------------------------
                                (Mbbl)  (Mbbl)    (Mbbl)  (MMcf)  (MBoe)  (MBoe)
--------------------------------------------------------------------------------
                                                                                
Proved developed producing     7,162     1,651   8,813      78     8,826   7,138
Proved developed               1,772     429     2,201      23     2,205   2,291
 non-producing                                                                  
Proved undeveloped             52,789      0     52,789     52    52,798   6,456
--------------------------------------------------------------------------------
Total proved                   61,724    2,080   63,804    154    63,829  15,885
Probable                       47,255   179,49   226,754   137    226,77  197,43
                                           9                         7       9  
--------------------------------------------------------------------------------
Total proved plus probable     108,979  181,57   290,558   291    290,60  213,32
                                           9                         6       4  
--------------------------------------------------------------------------------
Notes:                                                                          
(1)     BOE's may be misleading, particularly if used in isolation. In          
 accordance with NI 51-101, a BOE conversion ratio of 6 Mcf: 1 barrel is based  
 on an energy equivalency conversion method primarily applicable at the burner  
 tip and does not represent a value equivalency at the wellhead.                
(2)     Based on Sproule's December 31, 2013 forecast prices                    
(3)     Columns may not add due to rounding                                     



Net Present Value of Reserves

                               0%         5%         10%        15%       20%  
-------------------------------------------------------------------------------
                                                   ($000)                      
Before Tax                                                                     
Proved                                                                         
Developed producing           238,686    218,667    202,355    188,814  177,393
Developed non-producing        49,554     38,891     31,010     25,021   20,361
Undeveloped                 1,712,866    896,156    499,793    286,730  161,424
-------------------------------------------------------------------------------
Total proved                2,001,106  1,153,713    733,158    500,565  359,178
Probable                    6,778,456  2,964,519  1,460,725    788,943  435,070
-------------------------------------------------------------------------------
Total proved plus probable  8,779,562  4,118,232  2,193,883  1,279,507  794,249
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
After Tax                                                                      
Proved                                                                         
Developed producing           238,685    218,666    202,355    188,814  177,393
Developed non-producing        49,554     38,891     31,010     25,021   20,361
Undeveloped                 1,324,267    696,268    387,724    219,111  118,059
-------------------------------------------------------------------------------
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Total proved                1,612,506    953,825    621,089    432,945  315,813
Probable                    5,052,868  2,166,674  1,036,657    528,940  276,036
-------------------------------------------------------------------------------
Total proved plus probable  6,665,374  3,120,499  1,657,747    961,885  591,849
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Notes:

  1. Based on Sproule's December 31, 2013 forecast prices
  2. Columns may not add due to rounding  



Estimated Future Development Capital

($ Millions)                 Total Proved  Total Proved + Probable
------------------------------------------------------------------
------------------------------------------------------------------
2014                            196.3               211.8         
2015                             80.1               100.3         
2016                             33.7               205.2         
2017                             35.9               118.9         
2018                             11.2               350.5         
Remainder                       370.2               1809.8        
------------------------------------------------------------------
------------------------------------------------------------------
Total FDC undiscounted          727.4              2,796.5        
Total FDC discounted at 10%     448.8              1,345.9        



Reconciliation of Changes in Reserves

The following table summarizes the changes in the Company's share of oil and
natural gas reserves (before royalties) from December 31, 2012 to December 31,
2013. 



                    Oil, Heavy Oil & Bitumen          Natural gas          BOE  
--------------------------------------------------------------------------------
                    Proved  Probable   Total   Proved  Probable   Total   Total 
--------------------------------------------------------------------------------
                   (Mbbls)   (Mbbls)  (Mbbls)  (MMcf)    (MMcf)  (MMcf)   (Mboe)
Balance, Dec 31,    15,846   197,438  213,284     234         2     236  213,324
 2012                                                                           
Production         (3,464)         0  (3,464)   (524)         0   (524)  (3,551)
Extensions           4,327     1,846    6,174      18        40      58    6,183
Discoveries              0         0        0       0         0       0        0
Technical            2,681   (3,855)  (1,174)     215       116     331  (1,119)
 revisions                                                                      
Improved recovery   44,740    31,396   76,136       0         0       0   76,136
Acquisitions             0         0        0     210         0     210       35
Dispositions         (345)      (76)    (421)    (10)      (11)    (21)    (424)
Economic factors        19         4       23      10      (10)       0       23
--------------------------------------------------------------------------------
Balance, Dec 31,    63,804   226,754  290,558     154       137     291  290,606
 2013                                                                           
--------------------------------------------------------------------------------



Notes:                                                                          
(1)     BOE's may be misleading, particularly if used in isolation. In          
 accordance with NI 51-101, a BOE conversion ratio of 6 Mcf: 1 barrel is based  
 on an energy equivalency conversion method primarily applicable at the burner  
 tip and does not represent a value equivalency at the wellhead.                
(2)     Columns may not add due to rounding                                     


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



Pricing Assumptions

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)                                 
--------------------------------------------------------------------------------
2014   94.65         92.64         77.81        4.00         1.5         0.940  
2015   88.37         89.31         75.02        3.99         1.5         0.940  
2016   84.25         89.63         75.29        4.00         1.5         0.940  
2017   95.52        101.62         85.36        4.93         1.5         0.940  
2018   96.96        103.14         86.64        5.01         1.5         0.940  
2019   98.41        104.69         87.94        5.09         1.5         0.940  
2020   99.89        106.26         89.26        5.18         1.5         0.940  
2021   101.38       107.86         90.60        5.26         1.5         0.940  
2022   102.91       109.47         91.96        5.35         1.5         0.940  
2023   104.45       111.12         93.34        5.43         1.5         0.940  
2024   106.02       112.78         94.74        5.52         1.5         0.940  
                       Escalation rate of 1.5% thereafter                       

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. 'Developed' reserves are those reserves that are expected to be recovered
     from existing wells and installed facilities or, if facilities have not
     been installed, that would involve a low expenditure (e.g. when compared to
     the cost of drilling a well) to put the reserves on production.
  4. 'Developed Producing' reserves are those reserves that are expected to be
     recovered from completion intervals open at the time of the estimate. 
     These reserves may be currently producing or, if shut-in, they must have
     previously been on production, and the date of resumption of production
     must be known with reasonable certainty.
  5. 'Developed Non-Producing' reserves are those reserves that either have not
     been on production, or have previously been on production, but are shut in,
     and the date of resumption of production is unknown.
  6. 'Undeveloped' reserves are those reserves expected to be recovered from
     known accumulations where a significant expenditure (for example, when
     compared to the cost of drilling a well) is required to render them capable
     of production.  They must fully meet the requirements of the reserves
     classification (proved, probable, possible) to which they are assigned.
  7. 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
     our reserves.  There is no assurance that forecast prices and costs assumed
     in the Sproule evaluations will be attained, and variances could be
     material.



Contingent Resources

The following table summarizes certain information contained in the contingent
resource evaluations prepared by Sproule as of December 31, 2013. The reports
were independently prepared in accordance with definitions, standards and
procedures contained in the COGE Handbook. 

It should not be assumed that the estimates of recovery, production, and net
revenue presented in the tables below represent the fair market value of the
Company's contingent resources. There is no assurance that the forecast prices
and cost assumptions will be realized and variances could be material. The
recovery and production estimates of the Company's contingent resources
provided herein are only estimates and there is no guarantee that the estimated
contingent resources will be recovered or produced. Actual contingent resources
may be greater than or less than the estimates provided here. There are certain
contingencies which currently prevent the classification of these contingent
resources as reserves. Information on these contingencies are provided in the
footnotes to the tables below. There is no certainty that it will be
commercially viable for the Company to produce any portion of the contingent
resources on any of its properties. 



Summary of Best Estimate (P50) Contingent Resource - By Property (1)(3)

Project         Gross(2)         Net Present Values of Before Tax Future Net    
                 Heavy                             Revenue                      
              Oil//Bitumen                 as of December 31, 2013              
                                     Contingent Resources - Best Estimate       
                                                 Discounted at                  
--------------------------------------------------------------------------------
                                  0%         5%         10%       15%      20%  
--------------------------------------------------------------------------------
                 (MMboe)                          ($million)                    
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
                                                                                
Blackrod         566,141      15,178,455  4,571,360  1,500,195  486,579  120,741
Onion Lake       29,815        1,198,290    565,584    289,947  158,736   91,285
Mooney           34,726          898,410    510,646    311,009  200,037  134,295
--------------------------------------------------------------------------------
Total            630,682      17,275,155  5,647,590  2,101,151  845,352  346,321
--------------------------------------------------------------------------------

Notes:

  1. These volumes are arithmetic sums of multiple estimates of contingent
     resources, which statistical principles indicate may be misleading as to
     volumes that may actually be recovered. Readers should give attention to
     the estimates of individual classes of resources and appreciate the
     differing probabilities of recovery associated with each class as
     explained.
  2. 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.
  3. There are three categories in evaluating contingent resources: Low
     Estimate, Best Estimate and High Estimate. 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.
  4. The estimates of contingent resources (best estimate) and future net
     revenue for individual properties may not reflect the same confidence
     levels as estimates of contingent resources (best estimate) and future net
     revenues for all properties, due to the effects of aggregation.
  5.  '
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 and Mooney, and a 79.795 to 100%
     working interest at Onion Lake.
  6. The amounts included in these tables do not include the volume and value of
     BlackPearl's proved and probable reserves previously assigned by Sproule to
     these properties.
  7. The contingencies in the Sproule Report associated with the Company's
     Blackrod contingent resources are due to the following: (a)the requirement
     for more evaluation drilling, as required by the regulatory process, to
     define the reservoir characteristics to assist in the implementation and
     operation of the SAGD process (b)the absence of submission of an
     application to expand the commercial SAGD development; and (c)the
     uncertainty of timing of production and development.
  8. The contingencies in the Sproule Report associated with the Company's Onion
     Lake contingent resources are due to the following: (a)the absence of
     approval to extend the SAGD development area (b)the requirement for more
     evaluation drilling to define the reservoir characteristics of the resource
     to assist in the implementation and operation of the SAGD recovery process;
     (c)the uncertainty of company commitment for expansion of the commercial
     SAGD development; and (c)the uncertainty of timing of production and
     development.
  9. The contingencies in the Sproule Report associated with the Company's
     Mooney contingent resources are due to the following: (a) the requirement
     for more evaluation wells to further define reservoir and fluid
     characteristics (b)further establishment of increased production response
     from the Alkali Surfactant Polymer (ASP) flood in Phase One, which began
     July 2011; and  (c) the uncertainty of timing of production and development
     of the entire field.




Production Update

BlackPearl's Q4 2013 oil and gas sales volumes were 10,454 boe per day, a 15%
increase over Q4 2012 sales volumes and an 11% increase over Q3 2013 sales
volumes. The increase in fourth quarter production is mainly attributable to
additional primary development drilling at Onion Lake, as well as the Mooney
field being brought back into full production after facility maintenance work
undertaken in the third quarter. At Onion Lake we drilled 24 wells during the
third quarter which began to contribute to production in the fourth quarter. 

                            Three months ended  Year ended December 31
                                   December 31                        
----------------------------------------------------------------------
----------------------------------------------------------------------
Production by Area (boe/d)       2013     2012        2013        2012
----------------------------------------------------------------------
Onion Lake                      5,186    4,857       4,797       5,947
Mooney                          3,837    3,329       3,685       2,537
John Lake                       1,066      649         898         573
Other                             103       11         114          37
Blackrod                          262      221         236         272
----------------------------------------------------------------------
Total production               10,454    9,067       9,730       9,366
----------------------------------------------------------------------



Other

The Company is planning to release its 2013 year-end financial and operating
results on February 27, 2014. 

At December 31, 2013, the Company had 300,424,808 common shares outstanding.



Forward-Looking Statements

Certain of the statements made and information contained herein is
forward-looking statements and forward looking information (collectively
referred to as 'forward-looking statements') within the meaning of Canadian
securities laws. All statements other than statements of historic fact are
forward-looking statements. Forward-looking statements are typically identified
by such words as 'seek', 'anticipate', 'plan', 'continue', 'estimate',
'expect', 'may', 'will', 'project', 'potential', 'targeting', 'intend',
'could', 'might', 'should', 'believe' or similar words suggesting future events
or future performance.  In addition, statements relating to 'reserves' or
'resources', 'contingent resources' are deemed to be forward-looking statements
as they involve the implied assessment, based on certain estimates and
assumptions, that the reserves and resource described exist in the quantities
predicted or estimated and can be profitably produced in the future.  In
particular, this document contains forward-looking statements pertaining to,
the volumes and estimated value of BlackPearl's proved and probable reserves,
the volumes and estimated value of BlackPearl's contingent resources, potential
production levels for the Blackrod SAGD project and the Onion Lake thermal
project, the net present value per common share of our proved reserves, proved
plus probable reserves and contingent resources and the estimate for future
development capital. 



The forward-looking information is based on expectations and assumptions by
management regarding future production levels, future oil and natural gas
prices, continuation of existing tax, royalty and regulatory regimes, foreign
exchange rates, estimates of future operating costs, timing and amount of
capital expenditures, performance of existing and future wells, the ability to
obtain financing on acceptable terms, availability of skilled labour and
drilling and related equipment, general economic and financial market
conditions and the ability to market oil and natural gas successfully to
current and new customers. Although management considers these assumptions to
be reasonable based on information currently available to it, they may prove to
be incorrect. 

Undue reliance should not be placed on forward-looking statements. There can be
no assurance that the plans, intentions or expectations upon which
forward-looking statements are based will be realized. Actual results will
differ, and the differences may be material and adverse to the Company and its
shareholders. 

By their very nature, forward-looking statements involve inherent risks and
uncertainties (both general and specific) and risks that the goals or figures
contained in forward-looking statements will not be achieved. 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 recovery process, credit risks associated with counterparties,
the failure of the Company or the holder of licences, leases and permits to
meet requirements of such licences, 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 may be
found under 'Risk Factors' in the Annual Information Form. Readers are
cautioned that these factors and risks are difficult to predict and that the
assumptions used in the preparation of such information, although considered
reasonably accurate at the time of preparation, may prove to be incorrect.
Readers are also cautioned that the foregoing list of factors is not
exhaustive. Consequently, there is no representation by the Corporation 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 report are made as of the date hereof, and the Corporation
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
         E-mail: john.festival@pxx.ca
         
         Don Cook - Chief Financial Officer
         Tel: (403) 215-8313
         E-mail: don.cook@pxx.ca
News Source: NASDAQ OMX



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Language:     English
Company:      BlackPearl Resources Inc.
              
               
              Sweden
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         SE0002060863
WKN:          
 
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