OIL CITY, La., Jan. 21, 2010 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc.’s ("the Company", "Dragon") (Pink Sheets:BDGR) CEO, Mr. Scott D. Smith, announced today that two of the five wells have been drilled and logged and the third well is underway. The second well's log shows a six foot zone of virgin oil sands, meaning that Humble Oil Company did not drill deep enough to discover this zone which is not pressure depleted. There are good hydrocarbon shows from 650 feet to 775 feet and also from 850 feet to 910 feet. This means that our targeted pay zones are thicker than originally expected which hopefully translates to larger than expected returns. Also, “there appears to be enough gas to run the boiler once the project goes into the tertiary recovery phase, alleviating the excess overhead of having to fuel the boiler by other means, and generating greater profit margins for the working interest owners such as Dragon,” stated Mr. Smith. If all goes well, the plan is to complete the first three wells, allowing for production to commence, and then to calculate the best location for the last two wells based off of well logs and geological information.
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.