OIL CITY, La., Oct. 30, 2009 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc. ("the Company", "Dragon") (Pink Sheets:BDGR) announced that Chairman and CEO Dr. Gerald R. Bailey tendered his resignation on October 26, 2009 in order to assume immediate responsibility as CEO for a major oil company. While he was CEO, Dr. Bailey set the tone for a new direction at Black Dragon. The policies and initiatives instituted by Dr. Bailey are designed to frame the blueprint for a much stronger company. His plans and objectives the Company's shareholders can expect will continue to be implemented. Dr. Bailey noted that under his leadership, the Company's financial statements are current, a Disclosure Statement was posted on Pink Sheets, the operating costs have been reduced significantly, new leases have been acquired, an audit and a reserves report are both scheduled to be completed very soon and new drillings will commence in the very near future.
Director Thomas Neely regretfully accepted Dr. Bailey's resignation, but the Board of Directors took swift action in appointing Dr. Bailey's principal assistant as the new Chief Executive Officer, Mr. Scott D. Smith. The Board made this move rapidly to ensure an effective transition of competent management. Mr. Smith joined Black Dragon right after Dr. Bailey and has worked closely with him in formulating the plans to turn Black Dragon around. Mr. Smith was also instrumental in developing the necessary information to evaluate the assets of the Company, the cornerstone of all future plans. Dr. Bailey has pledged to support Mr. Smith and the Company during this transition and has stated that he has complete confidence in Mr. Smith's technical and leadership ability.
Mr. Smith is a life-long resident of Houston, Texas, has been involved in the oil and gas industry for several years, and attended Texas Tech University in Lubbock Texas. Mr. Smith has been appointed Chairman of the Board of Directors and CEO with full executive authority over the affairs of the Company and stated that he intends to continue to operate under the guidelines and policies established by Dr. Bailey himself and pledges to move the Company forward aggressively with this plan.
Resignation letter submitted by R. G. Bailey to Tom Neely, Secretary of Black Dragon:
Tom Neely Director Black Dragon Resource Cos. Tom, Please be advised effective October 26, 2009, I am resigning my position as Chairman and CEO of Black Dragon, relinquishing all authority and control. I have been offered a position that will result in my being named Chairman of a very large $200 million public oil company in a matter of a few weeks, but I am not at liberty to divulge that name at this time prior to a public announcement. As a condition of the due diligence that is in action, it is required that I be free of the Dragon situation to avoid any conflicts. I appreciate the opportunity Dragon has given me and I wish you and the Company all success. R G Bailey
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.