OIL CITY, La., May 17, 2010 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc. ("the Company," "Dragon") (Pink Sheets:BDGR) is pleased to announce that the company is beginning the process of using its patented chemical to greatly increase oil flow figures on the Humble Project. By forcing the chemical down a centrally located well via pressurized steam into the extremely porous Miocene Sand Formation, the chemical will break loose and thin the oil which is embedded in the sand and force it toward the surrounding production wells, stimulating output numbers to an estimated 50 BOPD per well. The chemical has proven to retrieve up to 94% of the hydrocarbons in the ground leaving only 6% left in the well, meaning we can recover a majority of the proven reserves.
By being able to recover 94% of the hydrocarbons in the ground the value of our proven reserves has increased substantially, which is expected to increase the value of the pv-10 in the marketplace. Dragon can now maximize the return of its hydrocarbons on its existing wells.
According to Scott D. Smith, Chairman and CEO, "Dragon is using a chemical that has been proven to increase oil production flows on oil wells exhibiting the traits associated with our Humble EOR project. We are very excited to begin this part of the project and look forward to reporting significant increases in oil flows to shareholders in the near-term. Dragon remains committed to shareholder value and projects such as the Humble EOR project will prove extreme diligence equates to intrinsic value for our loyal shareholders."
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.