OIL CITY, La., April 13, 2010 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc.'s ("the Company", "Dragon") (Pink Sheets:BDGR) Chairman and CEO, Mr. Scott D. Smith, announces today that after a positive inspection of the Humble lease, BDGR is pleased that two of the four wells are currently producing oil into the permanent tankage, and that all connection work for all four of the wells have been completed. The steam injection unit is being custom fabricated and should be ready for installation within the next 30 to 60 days. Initial flow rates have not yet been determined, but will be released in the very near future. The other two not yet producing wells have oil in the casing, however sand issues down hole need to be addressed. Mr. Smith stated, "That possibly the installation of a "Mono Pump" with a variable speed motor may easily solve these issues and that getting these issues addressed quickly and efficiently is a large priority." A Mono Pump also alleviates the need for a pump jack and can, in most cases, move more fluid than traditional pump jack setups. Additionally, we expect to report our PV-10 valuation to shareholders shortly. The PV-10 is a reserve study that evaluates oil and gas reserves left in place on leases and places a dollar value on those reserves. We intend to have the Humble project included in this study so its asset value can be maximized.
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.