OIL CITY, La., June 3, 2010 (GLOBE NEWSWIRE) — Black Dragon Resource Companies,
Inc.’s (“the Company”, “Dragon”) (Pink Sheets:BDGR) Mr. Scott D. Smith, Chairman
and CEO, is pleased to announce that he will be leaving for Munich Germany in
the next few days to meet with several extremely interested investors to fund
the previously announced Cotton Valley Drilling Program. With this possibility
of funding, Dragon hopes to make this lucrative investment a reality for
shareholders, equating to positive gains in Dragon’s stock value. Dragon will
start the process of getting the first Cotton Valley location staked during Mr.
Smith’s brief absence in Germany.
Additionally, Dragon is pleased to see the shallow chalk directional drilling
prospect start to come to fruition. As announced, the initial test well has
increased production due to this technology from ¼ of a barrel a day to
four barrels per day. These seem like small numbers, but that is an increase of
16 times the previous production which could easily be replicated in many other
wells in Dragon’s vast inventory of this genre. Dragon hopes to complete 3
horizontal Annona Chalk enhancement projects this month. If these 3 Chalk wells
are successful, in aggregate, they could add an additional 300 to 370 barrels
per month to Dragon’s bottom line.
Finally, Mr. Smith went on to state that, “Dragon’s priorities in the near term
are to obtain financing for the Cotton Valley Drilling Project while fast
tracking the PV-10′s completion which would allow the company to get audited
financials in the future, to acquire the acreage necessary for drilling the
Cotton Valley well program, and to get the Humble EOR Project fully operational
as quickly as possible.”
Black Dragon is an oil and gas exploration and production company currently
focused on the acquisition of mature, producing and existing domestic oil and
gas fields. This focus has eliminated exploration risk, reduced costs of
completion, and provided rapid generation of income in a niche market where
larger independent and major oil companies are not positioned to compete. Black
Dragon intends to recomplete additional shallow producing wells and to expand
its focus to include drilling of new wells, some to deeper levels and to
purchase additional leases.
Forward-Looking Statements – Safe Harbor:
Certain information discussed in this press release may constitute
forward-looking statements within the Private Securities Litigation Reform Act
of 1995 and the federal securities laws. Although the Company believes that the
expectations reflected in such forward-looking statements are based upon
reasonable assumptions at the time made, it can give no assurance that its
expectations will be achieved. Readers are cautioned not to place undue reliance
on these forward-looking statements. Forward-looking statements are inherently
subject to unpredictable and unanticipated risks, trends and uncertainties such
as the Company’s inability to accurately forecast its operating results; the
Company’s potential inability to achieve profitability or generate positive cash
flow; the availability of financing; and other risks associated with the
Company’s business. The Company assumes no obligation to update or supplement
forward-looking statements that become untrue because of subsequent events.
CONTACT: Black Dragon Resource Companies, Inc.
Scott D. Smith