BlackPearl Resources Inc.
BLACKPEARL REVISES 2015 CAPITAL SPENDING PLANS DUE TO LOWER CRUDE OIL PRICES

BlackPearl Resources Inc. 

12.01.2015 23:49

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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 Stockholm:PXXS) announced today changes to its 2015 capital
program as a result of the continued deterioration in crude oil prices. 



Capital Plans

In November 2014, the Company announced that it expected to spend approximately
$280 million in 2014 and had set a 2015 capital budget of $80 million. Our
original plans were based on forecast 2015 oil prices of US$85 WTI, a US$17 per
barrel heavy oil differential and an exchange rate of $0.90 Canadian to the US
dollar. 

Capital spending in 2014 was approximately $240 million, down from our previous
forecast of $280 million. This $40 million reduction in 2014 capital spending
relates to the Onion Lake thermal project. These costs originally planned for
Q4 2014 are now expected to be incurred in Q1 2015. 

The original 2015 capital budget of $80 million has been reduced to $31
million. Total 2015 capital spending is therefore expected to be approximately
$71 million ($31 million from above plus the deferral of $40 million from Q4
2014 spending).  The primary focus of the 2015 capital program will be the
completion of the first 6,000 barrel per day phase of the Onion Lake thermal
project, which will account for over 80% of our 2015 spending. We expect to
complete construction of this project and commence steam injection in mid 2015. 

Our amended capital spending plans were based on forecast 2015 oil prices of
US$55 WTI, a US$15 per barrel heavy oil differential and an exchange rate of
$0.85 Canadian to the US dollar.  We will continue to monitor industry
conditions closely and make additional adjustments to our spending plans as
conditions change. 



Hedge Position

Our current oil hedge position will provide significant cash flow protection
for the first half of 2015. We have 4,000 barrels of oil per day hedged in the
first quarter at a WCS (Western Canadian Select) price of Cdn$80 per barrel and
2,500 barrels of oil per day hedged in the second quarter at a WCS price of
Cdn$80 per barrel. The current market price for WCS oil is approximately Cdn$40
per barrel. 



Production Guidance

Our initial guidance for 2015 indicated that we expect production to average
between 9,000 and 9,500 barrels of oil per day. As a result of curtailing some
of our short term production growth projects in our revised capital plans we
expect 2015 production to average between 8,000 and 9,000 barrels of oil
equivalent per day. The Onion Lake thermal project is not expected to have a
significant impact on our production until 2016. 

John Festival, president and CEO, commenting on the revisions to our 2015 plans
indicated that 'although we are optimistic in the longer term outlook for oil
prices and the quality of our development projects, we have to adjust our
capital spending to maintain financial flexibility in the current low oil price
environment. If oil prices improve we are in a position to rapidly resume our
capital plans.' 



Forward-looking Statements

This 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',
'anticipated', 'planning', 'planned', 'potential', 'could', 'continue',
'continued', 'continuing', 'estimate', 'estimates', 'estimated', 'forecast',
'likely', 'expect', 'expected', 'may', 'intend', 'intends', 'intended',
'intention', 'deferred', 'successful', 'will', 'project', 'timing', 'in the
event', 'move toward', 'should', 'scheduled', 'outlook' or similar words
suggesting future outcomes. 

In particular, but without limiting the foregoing, this release contains
forward-looking statements pertaining to  capital expenditures in 2014, planned
capital spending in 2015, estimated 2015 crude oil prices, differentials
between light and heavy oil prices, anticipated value of the Canadian dollar
relative to the US dollar and anticipated average production volumes for 2015. 

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.
Accordingly, undue reliance should not be placed on these 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 nature, forward-looking statements involve numerous known and unknown
risks and uncertainties that contribute to the possibility that actual results
will differ from those anticipated in the forward looking statements. These
risks 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, volatility of commodity inputs, substantial capital
requirements, customary conditions including receipt of necessary regulatory
and stock exchange approvals on the issuance of common shares, 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, financial loss associated with
derivative risk management contracts, potential cost overruns, variations in
foreign exchange rates, variations in interest rates, diluent and water supply
shortages, competition for capital, equipment, new leases, pipeline capacity
and skilled personnel, uncertainties inherent in the SAGD bitumen and ASP
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. Readers are also cautioned that the foregoing list of factors is
not exhaustive. Further information regarding these risk factors may be found
under 'Risk Factors' in the Annual Information Form. 

The forward-looking statements contained in this 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
         Robert Eriksson - Investor Relations Sweden, Tel.: +46 8 545 015 50
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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