CALGARY, Sept. 5 /CNW/ - Blackpool Exploration Ltd. (BPX.A:TSX Venture Exchange) has repaid bridge indebtedness owing to K2 Capital Management of Toronto in the amount of $1.8 million. The Company has also improved its balance sheet with the elimination of current liabilities totaling $913,000. Proceeds from a disposition of certain non-producing properties for a total purchase price of $1.5 million combined with $1.213 million from the Company's credit facility with the Alberta Treasury Branches were utilized in these transactions. The first phase of Blackpool's plan to deal with issues which developed in the aftermath of the acquisition of C2 Energy Inc. has been executed. Management will now pursue its high working interest drilling program over the balance of 2006 to incur qualifying expenditures which will satisfy the renunciation obligations of Blackpool's 2005 flow through share issue. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.