On December 22, 2007, Black Dragon Resource Companies, Inc. held its Annual Meeting, but postponed the vote on any matter until Wednesday, January 16, 2008 due to a delay in the distribution of proxy material to stockholders. Mr. Lanza, President of the Company delivered his report following the close of the formal meeting, which is reprinted in its entirety below.
As for the Management team, we are still in place and continuing to operate the Company under the circumstances as best we can. But the insurgent's activities have hurt our Company badly. Prior to their attacks, which include vicious attacks on me and my family, including many, many untruths, the Company had reported a near record rate of revenues. Then the abrupt attack and what hurt the worst was the insurgent's notice to the purchasers of oil, which completely shut down all revenues to the Company, and production was nearly shut down. You can imagine trying to pay people for producing the oil, which was sold and picked up, but no cash. This was the worst crisis in our Company's history, but because of the loyalty of the Company's support system, employees, and some good negotiating by the Company's counsel we opened up this stalemate, but the Company was hurt and the scars remain. Unfortunately we had to assign the shallow rights to one of our leases in order to raise cash and stay alive, and we also had to sell shares of our common stock to stay alive and keep the pumps pumping. But let us address the future and compare it to our past. When Black Dragon became active in 2004, the Company had no operating wells, a negative net worth of $1,600,000 and a stock price at zero. Boy things have now changed, and despite the terrible cash crisis, we continue to expand with the following developments.
We have increased our December oil production (and cash to be received) to close the cash gap crisis, but not quite all the way yet. We have fracked three wells with significant potential which will increase revenues very soon. We have just completed our preliminary due diligence on a unique oil recovery system, which could speed up the recovery by a factor of 15% to 25%. We expect this to improve the efficiency of recovering oil, reduce costs and accelerate oil sales. To date, our attempts to raise capitol have been completely blocked by the insurgent's activities with our potential funders being as concerned about these activities as we are. Once we clear the air over the insurgent issue, management believes it has a good chance to raise funds from at least one of several groups that appear interested in joining with the Company in some way to help develop and exploit the Company's known substantial reserves of oil and gas. Inclosing, Management believes that the Company's future is bright, with the very real prospect of realizing substantial value for all its stockholders and we thank you for your support.
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