OIL CITY, La., July 16, 2010 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc. ("the Company", "Dragon") (Pink Sheets:BDGR) is pleased to announce today that Dragon will be acquiring another 3 ½% of the Humble Lease, giving Dragon a total of 20% ownership. Management discussed with Mr. Hamm the good, bad and ugly of the Humble Project. Management will be spending more time in Houston to help get the Humble Project finished.
Management also stated that Dragon and Sartor Drilling will drill and complete the fifth well and run and bury all necessary lines which will lead to the commencement of the EOR phase. The EOR phase of the project includes the use of a patented EOR chemical injected via steam under pressure which will reintroduce the drive in to the formation, which will hopefully enhance the recovery rates from the project's producing wells. With Dragon taking a more active role in the completion of the Humble Project it might receive an additional 5% royalty, bringing total ownership to 25%.
Management is hoping that the first phase will yield the Dragon $95,000 to $105,000 a month for every 5 wells. The goal is to drill at least 10 more wells, meaning the Humble Project alone could bring huge profits to the Dragon.
Management also stated that it is expecting the first cash payment from the operator for the last three months.
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 re-complete 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.