Black Dragon Resource Companies Inc (BDGR)

[localoil]

"what i think. in la there are a lot of cap wells that were strpper wells and when oil price in 90 or late 80 start to get low these well were not make money. they were plug."

If they were plugged you have to drill a new one, usually, or locate the buried and welded shut casing and drill out the cement that was poured into the casing from bottom to top.

"Capping" is not "plugging".

"now oil high , somebody interest in old wells you have on your property6 and they want lease these land wells are on. there are zone never test to see what they had when well making oil. these zones have now prove to be oil bearing sands."

That point of view is as old as the field.

"you want more money for rights to let some one drill done hole and test these new zone. so when you lease the wells out, you sign papaer saying that you can only drill so far down. below csrtain feet, that does belong to you. good example of this was when black dragon bought rights to drill in caddo lake. they only went so far.when they were going to buy the whole company, they had right to drill to china then."

All rights at all depths as to all acreage. Not to the extent that other parts of the leasehold was already owned by other.