Black Dragon has issued a correction on the 640 acre lease report. The net revenue interest is 84% rather than 80%, and the working interest is 100% rather than 75%. Dragon is now holding a very strong position in this development.
Also to further clarify the comment on the nearby Cotton Valley well, in 2008 the well came in at 11 mmscf per day, and has averaged 3.8 mmscf per day of gas and 11 barrels per day of oil, basis public reports. This is a very productive well. The significant point is the lease now held by Dragon includes this same Cotton Valley zone with a net revenue interest of 84%. At the same time, Dragon has a 4% royalty in the Haynesville Shale in this same lease.
Currently there are Haynesville prospects being drilled in contiguous acreage to the Dragon leasehold. The attractive gas finds in the Haynesville have been widely publicized and the Company is excited to have a position in this reservoir.
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