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.