OIL CITY, La., July 29, 2009 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc.'s ("the Company", "Dragon") (Pink Sheets:BDGR) Chairman and CEO, Dr. R. Gerald Bailey has announced his objectives for the remainder of 2009 to improve the Company performance. Dr. Bailey recently assumed his current position, having previously served as a regional President of Exxon. He feels his extensive oil industry experience makes him uniquely qualified to address enhancements in Black Dragon. He has initiated actions to increase production, improve operating efficiency, and implement an aggressive maintenance program on existing wells in order to promote a longer production life.
He has begun a concerted effort to improve accounting practices and financial reporting, with the intent of assuring that data are current and complete. He said, "There will be more utilization of computer programs, data analysis, and real-time operations reporting to improve field operations efficiency."
Black Dragon will use a business model based on limited payroll staff, while depending on outsourced services for the field operations. Services on wells and drilling of new prospects will rely heavily on several preferred supplier arrangements from companies that have demonstrated their skill and proficiency in these areas.
Two key actions with high priority are (1) to have a comprehensive independent audit of the business, and (2) to have a new reserves report prepared by an accredited engineering firm.
More specifically, Bailey outlined these broad initiatives:
* establish clear guidelines on the company structure and its affiliations * improve efficiency of operations and reduce costs * increase production by better maintenance and opening shut-in wells * improve employee morale and motivation * upgrade reporting and analysis tools * develop longer term maintenance and drilling programs * exploit current reserves more efficiently and add new reserves to the asset base * put greater emphasis on protecting shareholder value with cost-effective actions
Black Dragon operates producing wells and has oil and gas leases containing reserves to be further developed. The proper management of those assets is the source of value and potential growth for the Company. Dr Bailey plans to protect and professionally steward those assets. He expects these efforts to contribute directly to improving Company profitability.
The Company has hired an experienced landsman to review the courthouse records on all leases to ascertain terms and expirations in order to better plan for development and replacement with new leases in the area. Leases and wells will be reviewed for performance. Those with poor production will be liquidated in order to focus on the better wells.
"Black Dragon has a solid reserves base, good production, and access to additional productive leases," said Bailey. "With proper field management and overhead control, we expect to see a revitalization of the Company performance."
Black Dragon 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.