OIL CITY, La., Oct. 14, 2010 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc. ("the Company," "Dragon") (Pink Sheets:BDGR) is pleased to announce today that the company is currently in negotiations to sell two oil and gas leases. Company management hopes to close on the sale of the two oil and gas properties within the next 10 days. The sale of these two leases should bring sufficient funds to drill their percentage in the 8 deep wells. Management anticipates to drill between 8,000-13,700 plus feet.
The project is located in a very prolific location. Black Dragon's landman has indicated to management that the properties surrounding our leases are producing the following as of July, 2010 (the state is 60 days behind in publishing figures); one well is producing in the Smackover formation (8,089 -10,280 ft) 16,542 mcf and 260 barrels of oil a day. There are two Cotton Valley wells with perfs at 8325 feet with production of 4,781 mcf and 50 barrels of oil per day. An additional two Cotton Valley wells were drilled with perfs at 7,997-8,010 feet, and both are still producing 4,352 mcf per day. There are 4 completed Haynesville Shale wells, with perfs of 10,397-13,750 feet that have production of 11,883 mcf and 196 barrels of oil a day. All of these wells are settled in production, not flush production. Management is confident that the company can duplicate the current production of the surrounding leases.
Management has been receiving numerous phone calls about the viability and value of the company. We wish to direct the shareholders to the June quarter financials on pinksheets.com and all published press releases. The 3rd quarter financial statement should be out within 2 weeks.
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.