OIL CITY, La., Sept. 14, 2010 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc. ("the Company," "Dragon") (Pink Sheets:BDGR) is pleased to announce today that the company is in negotiations to acquire 4-5 deep right leases (3,000-12,000 ft.) All leases have no depth restrictions plus the potential to add 2-3 sections (640 acres per section) for additional drilling.
Dragon would have enough of its own acreage to drill 8 Cotton Valley wells and possible Haynesville Shale zones as well. The purchase will happen in stages allowing for the turning on of the first purchase, then the second, then the third, etc. Dragon hopes to close on the first of these leases this week.
October production is estimated to see a 3,000-4,000 barrel monthly increase in production. Upon completion of the purchase, Dragon hopes to increase production to 10,000 barrels for the month of December, dramatically increasing oil production numbers.
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.
CONTACT: Black Dragon Resource Companies, Inc. Investor Relations Brian Holden 913-226-3818