OIL CITY, La., Jan. 7, 2010 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc.'s ("the Company", "Dragon") (Pink Sheets:BDGR) CEO Mr. Scott D. Smith has announced today that Dragon is going to increase its position in the Humble Salt Dome EOR Project from 6.75% to 16% by the end of next week. "Drilling has begun on the initial well in the primary 5 well pattern. This project has excellent potential for production and also utilizes top tier technology. I feel that this project will be a major turning point for Black Dragon because it creates a working relationship with other companies that have patented technology that Dragon could benefit from, as well as the fact that is gets Dragon involved in additional oil and gas fields above and beyond our norm," stated Mr. Smith.
Also, on the 640 acre lease, the two gas wells drilled recently will be connected to the gas gathering line for commercial sale as soon as possible. Dragon is also looking at the possibility of picking up two additional wells that are located on the subject property that were abandoned in 1999 when gas prices were too low to make them profitable for production. The two recently drilled gas wells are currently shut in waiting for utility connection, but they have gas pressure. Before they can be connected for sale, the State will potential their capability, giving us a good idea of production numbers to come.
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.