OIL CITY, La., Aug. 3, 2010 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc. ("the Company", "Dragon") (Pink Sheets:BDGR) is pleased to announce that Black Dragon will now earn up to 25% of the first phase of the Humble Project by completing the first phase of the project which includes the drilling of the fifth well. Black Dragon intends to have the drilling rig onsite this week and have the 5th well completed within the next couple of weeks.
All 5 wells should be pumping within two weeks at which time the company intends to begin the EOR phase of the project. This phase of the project is projected to increase oil flow to 200-300 barrels of oil per day, dramatically increasing cash flow from the project.
Black Dragon also has a Verbal agreement with one of the property owners to buy up to an additional overriding 7 1/2% royalty. On 200 barrels of oil per day, this additional royalty interest could add an additional $53,000 per month to the bottom line. If the Humble project can produce 2/3rds of the projected barrels of oil per day, this would add an estimated $465,000.00 a quarter to Dragon. That figure does not include the addition of Phase 2 and 3 which will add 10 more pumping wells bringing the total well count to 15.
Black Dragon also has a verbal commitment with one of the mineral owners to purchase a second 10 acres on the Humble Dome in which Black Dragon will have a 100% interest.
The Humble Project Engineer has done a reevaluation of the resources on the Humble Dome and has now increased the estimated reserves to be greater than 1.5 million barrels of recoverable oil in place.
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.