OIL CITY, La., June 30, 2010 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc.'s ("the Company", "Dragon") (Pink Sheets:BDGR) Chairman and CEO Mr. Scott D. Smith is pleased to announce today that the Humble EOR Project produced 450 gross barrels of oil in the month of May from the productive wells drilled without any EOR techniques being applied. The project geologist estimates the amount of recoverable oil for the Humble EOR Project to be 1,500,000 barrels based upon the well data from the four completed wells. This number is subject to increase greatly if the two additional 5 well patterns are drilled and completed in the future. If these additionally proposed 10 wells are proven to contain equal reserves to these initial 5, the Humble lease will have an estimated total of recoverable oil near 4,500,000 barrels. This amount of recoverable oil has an estimated gross value of $315,000,000.00 at $70 dollars per barrel. Upon commencement of the EOR phase of the project, it is estimated that all of the recoverable oil will be produced from the project within a 5-7 year period. The EOR portion of the project includes the use of a patented EOR chemical injected via steam under pressure which will reintroduce drive to the formation allowing for greatly enhanced recovery rates from the project's producing wells.
According to Scott Smith, "The introduction of this chemical via steam injection to the wells will quickly reintroduce drive to the Miocene Sand Formation allowing for enhanced production rates of the complete recoverable resource. I believe the Humble EOR Project will demonstrate Black Dragon's ability to enhance oil production on existing wells by using patented 21st century oil production technologies that we are privileged to have access to on this project."
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.