Black Dragon Resource Companies, Inc. Announces the Acquisition of 3,000 Acre Oil and Gas Mineral Lease.
The corrected release reads:
BLACK DRAGON RESOURCE COMPANIES, INC. ANNOUNCES THE ACQUISITION OF 3,000 ACRE OIL AND GAS MINERAL LEASE
Black Dragon Resource Companies, Inc., (Pink Sheets:BDGR) announced today the acquisition of 51% of the working interest in a 3,000 acre oil and gas mineral lease with two existing 11,000 foot wells located on the Louisiana and Arkansas border, in the Arkana field of Bossier Parish, Louisiana. Black Dragon has 90 days to test the wells at its expense, and connect them to the Apache Corporation gas sales pipeline immediately adjacent to the lease and to tank batteries for oil production before paying 300,000 in cash and restricted shares for its interest.
The analysis of the logs and other data conducted for the Company indicates multiple pay zones in each of the wells. A recent test indicated initial potential on one of the wells at 50 barrels of oil per day, and 400,000 cf of gas per day from the zone currently completed at approximately 8,000 feet below the surface. Our engineer has indicated that a deeper gas zone might be more prolific. "We immediately took advantage of this new opportunity. Our intention is to establish production in both wells within the next month and observe the results," said Rick Michael, President of Black Dragon. "We believe that the initial returns should more than justify the investment before we exercise the option. Over time we will develop the undrilled acreage and the unexploited zones. With very limited risk Black Dragon has once again significantly enhanced our portfolio and will generate another great source of revenue."
Mr. Michael concluded by saying that "This additional area of development and assets provide Black Dragon with over 15,000 acres of oil and gas interests under development and on track to our previously stated goal of 30,000 barrels of oil per month and 20 million cf of gas per month by year end. We are gratified that our model of internal growth and accretive acquisitions representing value to our shareholders continues to be validated. This property has had the benefit of several million dollars of development over the last twenty years and we are getting it for a fraction of that amount."
As earlier stated the Company is working with its auditor to complete its work and become a fully reporting company in the near future.
About Black Dragon Resource Companies, Inc.
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.
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.