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Press Release Source: Black Dragon Resource Companies, Inc.
Black Dragon Resource Companies Announces New Accretive Acquisition of Working Interest in Spider Field Located in Desoto Parish, La.
Monday August 28, 5:51 pm ET
8 Oil and Gas Wells Will Add at Least $1 Million of Additional Revenues to Black Dragon in the Next Twelve Months
AUSTIN, Texas--(BUSINESS WIRE)--Aug. 28, 2006--Black Dragon Resource Companies, Inc. (OTCPK: BDGR) announced today that it has acquired a net revenue interest of 22.2% in the 1275 acre Hunter-Mannning lease of the Spider Field, located in Desoto Parish, Louisiana (just southeast of Shreveport). The lease contains eight wells recently drilled and completed in the Paluxy sands. The first four of these wells have been completed and have generated almost $1 million of oil and gas production in the last six months. Two of the remaining wells have been completed in the last week and are producing at comparable rates with their companions. The remaining two wells will be completed within the next two weeks. The open hole logs on these last two wells are very similar to the other six and substantial production is expected. The interest acquired by Black Dragon includes mineral rights in all depths. The interest and rights to cash flow for the property begins on July 1, 2006 .The acquisition was for a total purchase price of $2 million which was paid for as cash and a sellers note by Black Dragon.
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According to Richard Michael, President of Black Dragon, "This acquisition is great news for Black Dragon as it provides immediate additional cash flow and the 1275 acres that will be developed offer the Company another important geographic area to add to our growing property portfolio. We expect the 8 wells to add at least $80,000 a month or approximately $1 million of additional cash flow to the company." The Hunter-Manning lease is immediately north and east of successful drilling in the James Lime formation (5500 feet below the surface) and stratographic open hole logs on the 8 existing wells show a significant Annona Chalk zone above the Paluxy. "We anticipate additional drilling over the next year to successfully exploit these other depths and further increase our revenue from this project," added Michael.
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