OIL CITY, La., May 11, 2010 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc. ("the Company", "Dragon") (Pink Sheets:BDGR) is pleased to announce that the company is about to begin the most lucrative phase of its Humble Enhanced Oil Recovery Project. This phase of the project entails the use of a patented chemical that has been proven to greatly increase oil flow figures for already producing shallow oil wells that exhibit high permeability and porosity, traits associated with our Humble oil wells.
By forcing the chemical down a centrally located well via pressurized steam into the extremely porous Miocene Sand Formation, the chemical will break loose and thin the oil which is embedded in the sand and force it toward the surrounding production wells, stimulating output numbers to an estimated 50 BOPD per well.
According to Scott D. Smith, Chairman and CEO, "Dragon is using the Humble EOR project as a blueprint for other similar leases in its portfolio. The company's blueprint focuses on substantially increasing oil production flows on existing wells by using 21st century recovery technologies. We believe that we can easily replicate the success of this project and plan on quickly drilling two additional five well patterns on this same lease. With offshore drilling becoming limited due to unfortunate developments in the Gulf Coast Region, Dragon's focus on increasing oil production on existing onshore wells is timely."
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.