Black Dragon Resource Companies Inc (BDGR)

[charts talk]

Local, if a 75% or maybe a 70% NRI could be profitable at less than $70.00/B, why would a lower NRI not be profitable at $90/B? The “cost of operations” appears to have not escalated at the same pace as the price of oil has increased. If one had a contract that stated the cost of services rendered was X $s, then the “cost of operations” would not increase any.

Using this logic, a break even at $70/B with a 75% NRI would be the same as having 58.333327% NRI at $90/B.

Using this logic, a break even at $70/B with a 70% NRI would be the same as having 54.44443% NRI at $90/B

I understand some cost have risen, but I do not think they have risen nearly as fast as the PPBO. Thus an NRI of 60%, very very very very low, should result in a profit.

Also, will you take a shot at answering Spunkyknight’s questioning his post #10493, “What do you think the chances are at some deep oil?”

If I am wrong, please do not hesitate to show me the “errors of my ways”.

As you know, I am perceived as, "Typically it's a not very well informed lessor". I AM NOT BREAKING ANY TRUCE, just asking a question and quoting your memo that was after you said a truce was a good idea. By the way when I said "1/8, previously", it could have been/WAS in 1983/1984 with the price of oil around $11-$13/B, not 2007.

Your response also stated a “70% net revenue is doable” and the PPBO was less then than it is now.

Thanking you in advance.

Charts