Black Dragon In Talks to Sell O&G Leases
Black Dragon is currently in negotiations to sell two oil and gas leases. Company management hopes to close on the sale of the two oil and gas properties within the next 10 days. The sale of these two leases should bring sufficient funds to drill their percentage in the 8 deep wells. Management anticipates to drill between 8,000-13,700 plus feet.
The project is located in a very prolific location. Black Dragon's landman has indicated to management that the properties surrounding our leases are producing the following as of July, 2010 (the state is 60 days behind in publishing figures); one well is producing in the Smackover formation (8,089 -10,280 ft) 16,542 mcf and 260 barrels of oil a day. There are two Cotton Valley wells with perfs at 8325 feet with production of 4,781 mcf and 50 barrels of oil per day. An additional two Cotton Valley wells were drilled with perfs at 7,997-8,010 feet, and both are still producing 4,352 mcf per day. There are 4 completed Haynesville Shale wells, with perfs of 10,397-13,750 feet that have production of 11,883 mcf and 196 barrels of oil a day. All of these wells are settled in production, not flush production. Management is confident that the company can duplicate the current production of the surrounding leases.