Black Dragon Resource Companies Acquires Additional 77 Wells in Caddo Pine Island Field
Black Dragon Resource Companies, Inc. (OTCPK: BDGR), announced today the acquisition of 77 wells on 11 leases comprising approximately 300 acres in the Caddo Pine Island Field of Caddo Parish Louisiana from Allen Petroleum, Inc. for a $350,000 note payable over 3 years and 500,000 shares of restricted common stock of Black Dragon.
"The wells are anticipated to provide production of approximately 18,000 barrels per year", according to Richard Michael, President." We are pleased to have had the opportunity to acquire this premier property which is located adjacent to our existing operation at Pine Island. We anticipate putting the property into production in the near term by converting two of the existing wells to salt water disposal. We anticipate that the remainder of the wells will only require limited equipment and repairs to be placed into production," added Mr. Michael.
"The properties are within three miles of the company's offices and facilities in Oil City Louisiana and will allow for ease of administration," stated Mr. Michael".
About Black Dragon:
Black Dragon Resource Companies, Inc. is 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.
Forward-Looking Statements
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.
Strategic Growth International, Inc.
Stan Altschuler / Richard E. Cooper, 212-838-1444
SAltschuler@sgi-ir.com / RCooper@sgi-ir.com
www.sgi-ir.com
or
Black Dragon Resources Inc.
Rick Michael, 512-442-4151
www.black-dragonoil.com
Source: Business Wire (October 18, 2006 - 5:17 PM EST)
