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CALGARY, ALBERTA--(Marketwire - May 11, 2010) - BlackPearl Resources Inc. ("BlackPearl" or the "Company") (TSX:PXX)(FIRST NORTH:PXXS) is pleased to announce its financial and operating results for the three months ended March 31, 2010.

Highlights of our first quarter activities include:

• Oil and gas production averaged 6,685 boe/day, a 21% increase over Q1 2009;
• Crude oil prices continued to strengthen, averaging WTI US$78.71 per barrel; heavy oil differentials remained tight at 10%; partially offset by a stronger Canadian dollar;
• Revenues increased 131% to $36.4 million compared to Q1 in 2009; Cash flow from operations was $15 million, compared with negative $1.8 million in Q1 2009;
• Acquired the remaining 20% working interest in the Blackrod SAGD project; we now own 100% of this property;
• Drilled 8 development wells at Onion Lake, 60 additional wells planned for the remainder of the year;
• Subsequent to March 31, strengthened the balance sheet with an equity offering of 10.3 million common shares for net proceeds of $28.8 million.

John Festival, President of BlackPearl, commenting on Q1 2010 activities indicated that, "We had a very good first quarter. Production is increasing as a result of new drilling at Onion Lake and heavy oil prices stayed strong; both of which positively impacted our Q1 financial results. Our 2010 capital plans on our core properties are progressing as expected. The only major unexpected item for us in the first quarter was the purchase of the remaining 20% interest at our Blackrod SAGD property, which we think we achieved at an attractive value for our shareholders. Proceeds from recent asset dispositions and our equity offering will allow us to expand our capital program, which will primarily be additional development drilling at Onion Lake. Production for the next two quarters will be impacted by the sale of about 700 boe per day, but this will be more than made up by the end of the year through our capital investments. We think by the end of the year we could be producing in excess of 8,000 boe per day, which is ahead of our 2010 target."

Property Review

Blackrod SAGD Project

At Blackrod, we exercised our right of first refusal and acquired the 20% working interest in the project held by Serrano Energy Ltd., for $21 million. BlackPearl now owns 100% of this project and we plan to construct and operate a SAGD pilot later this year or early next year. In connection with the pilot, we completed construction of a 31 kilometre all-weather road to the proposed plant site. In addition, during the first quarter we drilled a water source well, a water disposal well and two observation wells. All of these wells will be used to operate the pilot. Engineering design for the steam and water handling facilities for the pilot are on-going.

Onion Lake

All of our short-term production growth will occur at Onion Lake. Development drilling continued during the first quarter, with eight wells drilled. We are planning a much more active second half of 2010 at Onion Lake, with over 60 wells planned. We plan to upgrade the fuel gas system and water disposal facilities at Onion Lake later this year. Over the next three to five years we plan to drill over 200 wells and then convert a portion of the Onion Lake field to thermal (SAGD) recovery.

Mooney

At Mooney, BlackPearl is preparing to build the first phase of its ASP flood (Alkali Surfactant Polymer) later this year following receipt of regulatory approval. This will involve construction of water and polymer handling facilities and converting 22 producing wells to injectors. Once injection commences we anticipate production response in six to twelve months. During the first quarter we have also filed an application for reduced crown royalties on the EOR project as a result of the increased capital costs of implementing an ASP flood.

Production

Oil and gas production for the three months ended March 31, 2010 was 6,685 boe/day, a 21% increase compared to the same period in 2009. It also represents a 26% increase from Q4 production in 2009 of 5,306 boe/day. The increase is attributable to development drilling activity at Onion Lake last fall as well as during the first quarter this year.

Production in the second quarter will be impacted by producing property asset dispositions that occurred in the first and second quarters. In total, these properties were producing approximately 700 boe/day at the time of the sale.