OIL CITY, La., Dec. 10, 2009 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc.'s ("the Company", "Dragon") (Pink Sheets:BDGR) Chairman and CEO, Mr. Scott D. Smith, announces today that the initial well on Dragon's 640 acre lease has been drilled to the top of the Nachitoches gas cap rock, and site preparation has begun on the second well location. The second well will be drilled by the end of this week and upon its completion, a smaller rig will be brought in to air drill the last portion of both wells. This process ensures that the wells will be capable of capturing the maximum amount of gas in this delicate formation. If the main drilling rig was to fully complete these wells, Dragon would run the risk of damaging its future returns.
The recently mentioned Paluxy well, in which Dragon owns a small interest, has been brought into production this week and has shown excellent results. Paluxy oil is much thicker and more viscous than many other varieties, so the interest owners are installing a heat treatment unit which is necessary for this type of production to be marketed in the current cold climate.
Mr. Smith further remarked that Dragon is currently in negotiations to acquire a possible 40% interest in a lease that is comprised of 14 wells and has an excellent production history for a stock issuance. This lease has averaged 215 barrels of oil per month over the last year which would be a nice asset to add to Dragon's portfolio.
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.