SOURCE: Black Dragon Resource Companies, Inc.

July 11, 2007 12:33 ET

Black Dragon Puts on 63 More Oil and Gas Wells in the Month of June

OIL CITY, LA--(Marketwire - July 11, 2007) - Black Dragon Resource Companies, Inc. (PINKSHEETS: BDGR) management today announced that 63 more wells were made operational in June, bringing the Company's total to 513 wells.

Gross production was 8,618.40 for June, and Black Dragon shipped over 4,000 barrels of oil and equivalent. Provided that rainfall decreases, management predicts that July should be a great month. Black Dragon expects to sell thousands of barrels, as soon as the ground hardens.

Management reported that the Company will become cash on cash profitable at 9,000 barrels sold per month. Currently, production is averaging .5625 barrels a day per well. With the addition of Mike Ellis to the team, management believes production can be increased to over 5 barrels a day per well. "My original goal was 3 barrels a day per well, and I still believe we can make that happen. Taking into account eventually having 1,200 wells in production at the current rate of .5625, that would still generate 67,500 barrels a month and gross 4 million a month cash flow. That would equal net revenue of over 2.8 million per month, making our stock grossly undervalued at the current $.09," stated Joe Lanza, CEO of Black Dragon.

About Black Dragon:

Black Dragon Resource Companies, Inc. is an oil and gas production company currently focused on the acquisition of mature, producing and existing domestic oil and gas fields. The Company's present focus on mature, domestic oil fields eliminates exploration risk, reduces costs of completion, and provides rapid generation of income in a niche market where larger independent and major oil companies are not positioned to compete.

Forward-Looking Statements

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, including, but not limited to, the continued production of gas at historical rates, costs of operations, delays, and any perceived benefits from existing oil and gas field properties, actual reserves and revenues to be derived from the reserves, plans to drill additional oil and gas wells, anticipated revenues, the acquisition of additional oil or gas leases, maintaining mineral lease rights, difficulties related to producing oil and gas, continued maintenance of the oil field and properties, price of oil or gas, marketing and sales of produced minerals, risks and effects of legal and administrative proceedings and governmental regulation, future financial and operational results, competition, general economic conditions, and the ability to manage continued growth. In addition, the Company's ability to produce audited financial statements, its ability to accurately forecast its operating results; its ability to achieve profitability or generate positive cash flow; the availability of financing; and other risks associated with its business are uncertain. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Contact Information

  • Contact: