Black Dragon Resource Companies, Inc. Completes New Wells in Hosston Field.
Drilling Program Continues
OIL CITY, La. -- Black Dragon Resource Companies, Inc. (PINK SHEETS:BDGR) announced today that it has completed (perforated the casing) the 7 new oil wells in the Hosston Field, Caddo Parish, Louisiana in the Nacotosh sand as oil wells. These wells are the first in Black Dragon's aggressive drilling program in Caddo Parish, Louisiana, announced earlier this year. After swabbing the wellbores clean, 5 flowed oil with virtually no water and the other two flowed oil with a trace of water. These preliminary results were sufficient for the company to conclude that all 7 wells will produce oil in commercial quantities. Four Star Oil Company, the contract operator of the wells, was directed to equip the wells with tubing, downhole pumps, rods and pumpjacks and to install flowlines to the tank batteries located on the leases. This work should, weather permitting, be completed by the end of this week and the initial production rates for these wells determined early next week.
Additionally the Midyette No. 5 well was drilled and cased and is scheduled for completion in the next week. Drilling has begun on the Wynn A Salt Water Disposal Well in The Hosston Field. This facility will allow the company to produce from 13 wells that are currently equipped but shut in. Due to wet conditions in that portion of the Caddo Pine Island Field drilling of the Salt Water Disposal Wells on the Watkins Lease and then on the Taylor lease has been temporarily delayed. These wells will be drilled as soon as conditions permit.
"These results signal a good start for 2007," said Rick Michael, company President.
About Black Dragon:
Black Dragon Resource Companies, Inc. is an oil and gas Production Company focused on the acquisition of mature, producing and existing U.S. oil and gas fields. The Company's focus on mature, domestic oil fields eliminates exploration risk, reducing costs, and provides immediate generation of income in a niche market where larger independent and major oil companies are not positioned to compete.
The statements in this press release regarding any implied or perceived benefits from existing oil and gas field properties, actual reserves and revenues to be derived from the reserves, plans to drill additional oil and gas wells, anticipated revenues, the acquisition of additional oil or gas leases, maintaining mineral lease rights, and any other effects resulting from any of the above are forward-looking statements. Such statements involve risks and uncertainties, including, but not limited to, the continued production of gas at historical rates, costs of operations, delays, and any other difficulties related to producing minerals such as oil or gas, continued maintenance of the oil field and properties, price of oil or gas, marketing and sales of produced minerals, risks and effects of legal and administrative proceedings and governmental regulation, future financial and operational results, competition, general economic conditions, and the ability to manage continued growth.
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.
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|Date:||Feb 13, 2007|
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