OIL CITY, La., Nov. 12, 2009 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc. ("the Company", "Dragon") (Pink Sheets:BDGR) is pleased to announce that it is currently negotiating to acquire a new lease on 122 acres in southern Caddo Parish. The acquisition, if made, would provide Black Dragon rights to drill wells up to a depth of 9000 feet bearing an 84% net revenue interest. Mr. Scott D. Smith, the CEO of Black Dragon, is working diligently with the mineral owners of this property in an ongoing effort to increase Black Dragon's acreage position. There is no assurance that the negotiations will be successful, but if an agreement can be reached, it should conclude within the next few weeks.
In this time of the weakening dollar, Black Dragon hopes to capitalize on rising oil and gas prices by drilling new completions, as well as to obtain improved returns on its existing leases. With recent improvement in the weather, surface conditions are more favorable for drilling on the 640 acre lease, with spud dates targeted within the next two weeks on this property.
As initiated by his predecessor, Dr. Bailey, Mr. Smith continues to analyze means to cut costs, boost production, and will keep the shareholders informed as all developments occur.
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.