Black Dragon Spuds New Hosston Wells
Black Dragon Resource Companies, Inc. has finished drilling, obtaining open hole logs and casing 7 new oil wells in the Hosston Field, Caddo Parish, La. 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, 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."
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.