Black Dragon Resource Companies Acquires over 400 Wells; Acquisition Provides Company with Critical Mass to Support Drilling Program for Stripper Wells.AUSTIN, Texas -- Black Dragon dragon, mythical beast usually represented as a huge, winged, fire-breathing reptile. For centuries the dragon has been prominent in the folklore of many peoples; thus, its physical characteristics vary greatly and include combinations of numerous animals. Resource Companies, Inc. (Pink Sheets: BDGR) announced today that the Company has acquired over 400 wells located in the prolific Caddo Pine Island Pine Island is the name of several places in the North America: Islands
Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. and a Note, collectively having a face value of $3 million, in the transaction. Black Dragon now owns interests in over 1,000 wells. "The acquisition of these wells represents a significant milestone for Balck Dragon, as it now gives us enough wells that are contiguous Adjacent or touching. Contrast with fragmentation. See contiguous file. to each other to support a profitable drilling program," said Rick Michael, President of Black Dragon Resource Companies, Inc. "By acquiring ownership interests in over 1,000 wells, we are now well positioned to rapidly increase cash flow through the expansion of our drilling activities." Black Dragon Resource Companies has projected its 2005 annual gross revenue to be approximately $5 million based on the success of their drilling and acquisition initiatives. 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. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Certain information discussed in this press release may constitute forward-looking statements within the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 un·true adj. un·tru·er, un·tru·est 1. Contrary to fact; false. 2. Deviating from a standard; not straight, even, level, or exact. 3. Disloyal; unfaithful. because of subsequent events. |
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