OIL CITY, La., Oct. 29, 2010 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc. ("the Company," "Dragon") (Pink Sheets:BDGR) is pleased to announce today that the company has sent out bid requests to 10 large independent drilling companies. The bids will be for its eight well Cotton Valley deep well drilling program with each well being drilled on a turnkey basis. Management believes the turnkey drilling will protect the company from any extra costs that would arise if there are any complications drilling to the company's target depths that range from 10,000 to 12,000 feet. By correlating the well logs of the wells surrounding the first four drilling locations, Black Dragon is able to determine the depth of each well.
The Humble Project has been affected by the unexpected presence of sour gas. After reevaluating the new operating cost to eliminate the sour gas in this operation, Black Dragon has decided to recoup the money invested by accepting a rescission offer. The Humble Project managers have agreed to rescind the funds Black Dragon invested into the project and preparations for a closing are being expedited.
Black Dragon Management also announced the contracts that were scheduled to be signed this week involving the sale of leases located in two of the oil and gas fields in Louisiana are in the process of being revised. Management intends to make an announcement of all the terms of the sale with full disclosure as soon as the documents are signed and executed.
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.