Black Dragon Resource Companies Inc (BDGR)

[gary zorne]

Gentlemen:

I am aware of the posting regarding the data from the State of Louisiana database.

Yes, I am the same Gary Zorne who was employed by Transworld. I worked with them on various projects including their Oil & Gas holdings in Louisiana.

In the interest of TOTAL transparency, I am responding to the question which was posted on this Board.

I was assigned to take over the fields in question in September of 2000, immediately after Transworld received its first civil penalty due to problems with their local operator. During the time that I was in charge of the fields, I was responsible for ONE (1) penalty which was assessed on 1/24/2002 and again on 3/19/2001. This penalty had to do with the differences between what was reported as being produced and amounts reported as sold or disposed. This problem arose from paperwork being prepared incorrectly. I used an outside reporting service to do this paperwork. Everybody makes mistakes. No big deal. I think the penalty was $100.

My directive was to get the fields up to full production to sell them. These fields were effectively sold and under contract around September 20, of 2001. After that point, the new owners were responsible for filings and operations. I was totally out of the picture. I was working on another project since I had achieved my objective as directed.

Now, every operator at some time or another will get a penalty in Louisiana. That is just a part of doing business here. It raises money for the "Clean Up" fund. These penalties are assessed against the operator of record, not against the individual.

I think it is important to know that the people we have working here at Black Dragon certainly have experience in the Oil & Gas business.

On another note, I would like to say that I am very busy working on all of the items which have been requested by our auditors. I would love to accept phone calls and respond to this board but, I simply don't have the time right now. I am working on the shareholders behalf to get this audit completed.

Sincerely,

Gary Zorne