SOURCE: Black Dragon Resource Companies, Inc.

September 20, 2007 11:36 ET

Black Dragon Sells 8,402 Barrels of Oil & Gas Equivalents

OIL CITY, LA--(Marketwire - September 20, 2007) - Black Dragon Resource Companies Inc. (PINKSHEETS: BDGR) announces that in July and August, 2007 it shipped 8,402 barrels of oil & gas equivalents. Gross Revenue from the sale of oil was $612,612. Output and revenues were divided as follows:

--  July output was 3,955 barrels yielding gross revenue of $292,082.
--  August output was 4,447 barrels yielding gross revenue of $320,580.
    

This past July, Louisiana suffered record rainfall of over 10 inches causing transportation and production problems. In August, management concentrated on putting on wells that had recently shut down and rebuilding roads, repairing and replacing tank batteries and otherwise getting ready for winter. Management feels that by working in this direction, expenses will fall in line with current cash flows.

--  Management estimates September production of 4,500 to 6,000 barrels.
--  Black Dragon's net revenue interest in its wells ranges from 57 to
    71%.
    

About Black Dragon:

Black Dragon Resource Companies, Inc. 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:

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 Black Dragon 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. 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, oil and gas reserves and revenues to be derived therefrom, plans to drill additional oil and gas wells, acquisition of additional oil or gas leases, maintaining mineral lease rights, continued maintenance of the oil field and properties, price of oil and gas, marketing and sales of oil and gas produced, government 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, and its ability to achieve profitability or generate positive cash flow are uncertain. Black Dragon assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. Readers are cautioned not to place undue reliance on these forward-looking statements.

Contact Information

  • Contact:
    Black Dragon Resource Companies, Inc.
    Michael Ellis
    President
    318-995-0710
    bdgr@bellsouth.net