Hey thats all part of the buisness bottom line is a huge increase in oil production 300% to 1000% according to this mornings news with increased profits comes increased expenses all part of making money I doubt they would do it if i costs more then it yields. JMO of course. Im might also add that alot of wells today are piped in to the salt water disposal which is very cost effective because this eliminates the need to pay a salt water truck to pump the tanks and is all automated. Not sure how this particular field is setup.
Black Dragon Resource Companies, Inc. Announces New Technology to Increase Oil Production
.Companies:Black Dragon Resource Companies, Inc..Press Release Source: Black Dragon Resource Companies, Inc. On Thursday April 8, 2010, 6:00 am EDT
OIL CITY, La., April 8, 2010 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc.'s ("the Company", "Dragon") (Pink Sheets:BDGR - News) Chairman and CEO, Mr. Scott D. Smith, announced today that Dragon has designated a well to test a new experimental patented technology that allows for directional drilling in shallow depths, mainly focusing on the Annona Chalk Formation. Black Dragon Resource Companies, Inc. has an inventory of 600 wells of this type in its portfolio of assets. A traditional chalk well is perforated with a shot that is the diameter of a .22 caliber bullet, with penetration of only 6-8 inches into the formation itself, once it pierces the casing, cement, and finally reaching the formation. This patented technology allows for cost effective horizontal drilling at shallow depths maximizing exposure to the targeted formation. The tool is able to drill 31 feet out in any direction, at any angle, boring a 2-7/8ths inch hole. According to Mr. Smith, Chairman and CEO, "This technology has the potential to increase chalk oil production by 300% to 1000% thereby increasing revenues substantially."
Black Dragon is an oil and gas exploration and production company currently focused on the acquisition of mature, producing and existing domestic oil and gas fields. This focus has eliminated exploration risk, reduced costs of completion, and provided rapid generation of income in a niche market where larger independent and major oil companies are not positioned to compete. Black Dragon intends to recomplete additional shallow producing wells and to expand its focus to include drilling of new wells, some to deeper levels, and to purchase additional leases.
