OIL CITY, La., April 23, 2010 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc.'s ("the Company", "Dragon") (Pink Sheets:BDGR) Chairman and CEO, Mr. Scott D. Smith, announced today that the third well on the Humble EOR Project has been placed into production. These three wells are producing 17-20 barrels of oil per day (BOPD). The production estimates for these wells, once the EOR project has commenced, is an estimated 200 barrels of oil per day (BOPD).
Dragon intends to use a revolutionary patented EOR chemical to greatly increase production output. This patented EOR chemical that will be used thins heavy, almost tar like oil and helps the oil to be easily extracted from the sand that it is embedded in. Additionally, the chemical repels oil, allowing the steam to force the residual oil down toward the producing wells, leaving extremely low percentages of oil left in place and maximizing production recovery. Initial production rates will be greatly enhanced once the EOR chemical is introduced to the targeted porous sand formation via steam injection. Mr. Smith stated, "Black Dragon is committed to continually finding new technology applications which increase production rates in an industry which still largely operates on antiquated technology. BDGR intends to become a symbol of technological advancement for the oil and gas industry."
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.