OIL CITY, La., Oct. 21, 2009 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc. ("the Company", "Dragon") (Pink Sheets:BDGR) announces CEO Dr. Bailey has reported he has received a number of shareholder calls questioning Dragon's recent volatility. In response, he stated that the movement must be related to the recent positive press releases on cost reduction efforts and new projects being pursued to immediately improve the company's revenue stream. One of the most upside potential benefits could be from the reported 640 acre lease position in Caddo Parish. On contiguous acreage to the Dragon lease, a Cotton Valley well that was discovered in 2008 came in at 11 million cf per day, which represents in today's market of $4 gas around $1,320,000 per month, and has maintained an average of $340,000 per month.
On other contiguous acreage to Dragon's new leasehold, a Haynesville Shale well was recently completed and came in doing over 1.6 million cf per day, which is 48 million cf per month, with an additional 600 bbls of oil per month. This well generates $200,000 per month. Dragon only owns a 4% royalty of Haynesville Shale in this new lease but it can capture significant such revenue on new wells drilled, and it owns 84% of all other zones (including the Cotton Valley). Dragon has contracted Petrolind Drilling Company to drill up to 3 wells on the new lease. Based on these successful completions in the immediate vicinity, Dragon is optimistic that these same proven zones will also be contained within the depths of its new lease.
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.