OIL CITY, La., June 17, 2009 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies Inc.'s ("the Company", "Dragon") (Pink Sheets:BDGR) CFO, Gary Zorne, announced today that the Company is finalizing its financial statements for fiscal year 2008 and expects to report a pre-tax profit for the year. Mr. Zorne stated that the final form of unaudited statements will be published on www.PinkSheets.com by the end of this month.
Management has recently cut costs, streamlined its operations, and expects to increase oil and gas production, along with its revenues during the current fiscal year. One of the recent steps taken by Black Dragon was to transfer to Caddo International, Inc., 60 wells, which the Company was unable to develop due to the lack of capital funding required to avoid losing these lease rights. Under the terms of the leases, if the wells were not put into production, Black Dragon would have lost all of its rights. By transferring these rights to Caddo, Black Dragon was able to reduce its obligation by $50,000.00 a month plus surrendering all of Caddo shares of Preferred Stock of Black Dragon. This transaction will greatly improve Black Dragon's financial condition by eliminating the most significant liability on its balance sheet and thus assist the Company in its future search for capital. The Company continues to experience liquidity problems, however, because of its continuing program of drilling the new wells with the goal of drilling up to 15 new wells this year, including two new wells on the Land Co. lease this month. This program should add an additional 270 barrels of oil a day and 1 million mcf of gas, which would result in 2009's production exceeding all previous years. Mr. Zorne added that with the recent increase in the price of oil and gas, revenues will most certainly increase.
The Company also recently elected, after comparing the pricing of all other drilling companies in the area, to work with Petrolind Drilling, a subsidiary of Caddo International, Inc., which could save the Company up to $30,000.00 per well drilled.
Management of the Company stated that Black Dragon had faced very difficult and unusual challenges in the past year, but has come out of it a leaner and more focused producer, ready to take full advantage of all new opportunities in the fossil fuel industry.
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 - 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.