Black Dragon has acquired 4 new leases. These 4 new leases will add an additional 11 oil wells with 2 salt water wells to Black Dragon's portfolio. The leases sit on eleven hundred acres with no depth restrictions on most of the acreage which will be used for further exploration. The company also has the opportunity to pick up an additional 1,380 acres with no depth restrictions based upon the success of the first four leases.
The newly acquired 11 wells that are already drilled are expected to add 170-200 barrels a month to Black Dragon's total production. Black Dragon intends to begin working this acreage immediately. With the purchase of this lease the company has increased its production goal for December 2010 from 5,000 barrels per month to 10,000 barrels per month. Black Dragon expects to gross $750,000.00 for the month of December or net $600,000.00 before expenses.
According to Thomas Neely, President,"Black Dragon has grown its operations substantially since January of 2010. The company was only grossing $40,000 before expenses and expenses were greater than they are currently. For the month of October the company's goal is to pick up oil from 30 plus leases which is up substantially from the 11 leases that we picked up oil from in January 2010. Black Dragon's December revenue is expected to increase nearly 20 fold from the month of January 2010. Black Dragon becomes cash flow positive with the production of 5,000 barrels of oil per month. At 7,000 barrels per month the company can pay for the addition of 25 new wells. As we increase production more leases can be turned on leading to a tremendous growth model."
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