Black Dragon Acquires Interests in 70 Oil and Gas Wells; New Wells to Immediately Increase Production in December.

AUSTIN, Texas -- Black Dragon Resource Companies, Inc. (OTC: BDGR) announced today that it has acquired 70 oil and gas wells in the prolific Caddo Pine Island Field in Caddo Parish, Louisiana. Twelve wells are currently in production, and are expected to immediately add to the Company's December production and profitability. The acquisition increases the number of wells that the Company currently has an ownership interest in to 1,087.

Black Dragon also announced that it has contracted three crews and workover rigs to support its 2006 exploration and production activities. These crews will continue the ongoing program of pulling, repairing and enhancing the production from the Company's wells. Black Dragon has also contracted a fourth crew that will be dedicated to connecting flowlines to tanks and pipelines and electricity to wells reequipped during the year. The Company has also contracted the exclusive use of two crews for drilling new wells, both onshore and over the Ferry Lake area during 2006.

"We are very excited to have acquired such attractive oil and gas properties," said Rick Michael, Black Dragon's President. "The combination of a substantial increase in production and reserves, dedicated equipment to support our drilling activities and strong commodity prices positions the Company for strong growth in 2006."

Black Dragon is focused on the recovery of oil and gas reserves through acquisition and project development, specializing in mature and marginal field enhancement, developmental exploitation drilling and low-risk exploration opportunities in the Texas and Louisiana regions.

Forward-Looking Statements 

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.