SOURCE: Black Dragon Resource Companies, Inc.

February 06, 2007 12:25 ET

Black Dragon Resource Companies, Inc. Drills New Wells in Hosston Field

Completion to Be Conducted This Week; Drilling Program Continues in Caddo Pine Island

OIL CITY, LA -- (MARKET WIRE) -- February 6, 2007 -- Black Dragon Resource Companies, Inc. (PINKSHEETS: BDGR) announced today that it had finished drilling, obtaining open hole logs and casing 7 new oil wells in the Hosston Field, Caddo Parish, Louisiana. Six wells on the Fuller Lease (Fuller No. 10-15) and one well on the Midyette Lease (Midgyett No. 4) were drilled logged and cased as of Friday, February 2, 2006. All of these wells will be completed in the Nacotosh sand as oil wells within the next few days, weather permitting. These wells are the first in Black Dragon's aggressive drilling program in Caddo Parish, Louisiana, announced earlier this year.

This week drilling began on the Midyette No. 5 and No. 6 wells. The No. 5 will be completed as a Nacotosh oil well and the No. 6 will be a salt water disposal well. In addition, drilling will commence on Salt Water Disposal Wells on the Watkins Lease and then on the Taylor lease in the Caddo Pine Island Field. Completion of these facilities will allow the company to resume production from 35 oil wells on those leases that are currently shut in.

When the Watkins and Taylor wells are cased, the rig will be moved to the Land Company Lease in the Caddo Pine Island Field to drill 5 new wells to exploit the Paluxy sands on that property.

It is intended that this phase of the ongoing drilling program will be completed in February. Assuming the weather does not cause undo delays, the company should show significant production increases in February from the Hosston wells and again in March from the Caddo Pine Island wells. All of this work is in addition to the continuing reestablishment of production from Black Dragon's inventory of existing wellbores.

"This is just the start," said Rick Michael, company president, "By the first of March we will have laid out and applied for permits for the next 60 days of drilling activity, increasing our production and reserves throughout the second quarter of 2007."

About Black Dragon:

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

The statements in this press release regarding any implied or 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, and any other effects resulting from any of the above are forward-looking statements. Such statements involve risks and uncertainties, including, but not limited to, the continued production of gas at historical rates, costs of operations, delays, and any other difficulties related to producing minerals such as oil or 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.

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 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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