Black Dragon Announces Positive Test Results
OIL CITY, La., Aug 6, 2010 (GlobeNewswire via COMTEX) -- Black Dragon Resource Companies, Inc. ("the Company", "Dragon") (Pink Sheets:BDGR) is pleased to announce today that Black Dragon's EOR technology has demonstrated positive results. According to EOR Principal, the Davis well was producing 4 barrels a day. They injected 1.100 barrels of water with the chemical and the well produced 150 barrels in 36 hours. That was the maximum volume the Davis well could pump. They feel by increasing the size of their pumping system, the well could produce 500 barrels a day. Dragon Management was also told that the Davis lease only shows 1/2 of the reserve of the Humble property. Again Dragon plans to have the fifth well drilled and be injecting the chemical before month end. The cost to purchase this patented steam injection equipment can be recovered in 150 barrels creating a nice ROI for the furnace and equipment necessary to increase Humble's production 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.
Forward-Looking Statements - Safe Harbor:
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.
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SOURCE: Black Dragon Resource Companies, Inc.
