OIL CITY, La., Oct. 16, 2009 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc. ("the Company", "Dragon") (Pink Sheets:BDGR) recently announced the initiation of a project to capture production from associated gas on oil wells, and from existing gas wells. There could be in excess of 200 currently producing oil wells outfitted for dual production in this manner. The first group of wells has now been connected to capture the gas. The effort will continue in a regularly scheduled program.
Currently, most of Dragon's producing chalk oil wells are producing some gas. There are other non-associated gas wells that have been inactive. The project has begun to identify a work program to bring these existing gas producers on line and connected to the pipeline. Meanwhile new wells on new leases at deeper depths are being planned. These actions will increase company revenue and add shareholder value. Management believes that gas production can be as high as 9 mmscf per month, which could contribute around $30,000.00 per month in gross revenue. The cost to ramp up production could be as high as $150,000.00, but the project, together with higher gas prices, now makes it an appropriate time to put resources on this matter.
Considering the existing oil and gas assets, Dragon plans to exploit its full asset value. These actions should enhance market perception and add true value to the hydrocarbon reserves of the company. It was previously reported that a new 640 acre lease was obtained that will add to this value when the first two wells there come on later this year. The newly acquired Haynesville Shale royalty is another potential revenue generator.
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.