OIL CITY, La., Feb. 8, 2011 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc. ("the Company," "Dragon") (Pink Sheets:BDGR). Mr. Neely, President of the Company, said that he was very excited about the joint venture drilling agreement between Black Dragon Resources Limited (trading on the Frankfurt exchange under the symbol of 8BDF) (Frankfurt:8BDF). Both companies have done a like for like stock exchange. Black Dragon will receive 10 million shares and 8BDF will be receiving a billion shares. Both Companies must put up 40% of the costs on 8 oil and gas wells. 8BDF plans to pay a dividend where BDGR will use their excess cash to continue to buy back shares. The 10 million shares are now valued at $13,900,000 which adds to Dragon's asset value. The first of the two leases sold to the Canadian Company is the Ramsey lease, which was given to Dragon at no cost from an affiliated company. They kept back the right to participate in any drilling activities, with a 20% working interest, meaning that they are responsible for their percentage of the costs.
The second lease is called the Haynesville lease. It has 320 acres, 14 wells, 5 are currently producing around 300 barrels a month. Both leases are going to take a great amount of money to get to their maximum capacity. Management feels that they have cut a great deal for the shareholders, as they receive 40% of the working interest, pick up an undisclosed amount of cash, and over 20% of 8BDF. The 10 million shares represent 20% of 8BDF. Mr. Neely stated that Dragon has a great amount of assets, and now has a strong working partner to help develop them.
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.