OIL CITY, La., Aug. 27, 2010 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc. ("the Company", "Dragon") (Pink Sheets:BDGR) is pleased to announce it has adopted a new method for putting additional wells online. The company is going to spend three to four days with a cost of only $8,000.00- $10,000.00 per well. This new procedure increases the oil flow rate and extends the longevity of the well.
Thus far the 6 wells that have been turned on that produced 0 bopd are now producing 2-6 bopd. Black Dragon has almost 900 wells in its inventory and hopes to replicate the success of the 6 wells to all 900. The company expects revenues to increase $137,910 a month within 90 days as additional wells continue coming online. Black Dragon's monthly revenue is estimated to grow to $350,000 by December 31 excluding the Humble Project and other possible acquisitions. The company expects to continue to increase monthly revenue substantially as wells continue coming online over the next year.
The company is working with an operator and service company to use 3 rigs to turn on 7 wells a month per rig minimum but will speed up the process as cash flows increase as the result of a successful Humble Project.
Black Dragon is also pleased to announce a drilling rig is on the way to the Humble Project to finalize the drilling of the fifth well and begin the EOR phase of the project. For more information on the Humble Project please refer to the following Press Release: http://finance.yahoo.com/news/Black-Dragon-Moves-Forward-pz-850285653.html?x=0&.v=1 . The Company will have its own operator onsite to make sure the project is run efficiently. Company management intends to increase efficiency 10 fold.
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.