Black Dragon Begins Bidding Process for Cotton Valley Drilling Program
Black Dragon has sent out bid requests to 10 large independent drilling companies. The bids will be for its eight well Cotton Valley deep well drilling program with each well being drilled on a turnkey basis. Management believes the turnkey drilling will protect the company from any extra costs that would arise if there are any complications drilling to the company's target depths that range from 10,000 to 12,000 feet. By correlating the well logs of the wells surrounding the first four drilling locations, Black Dragon is able to determine the depth of each well.
The Humble Project has been affected by the unexpected presence of sour gas. After reevaluating the new operating cost to eliminate the sour gas in this operation, Black Dragon has decided to recoup the money invested by accepting a rescission offer. The Humble Project managers have agreed to rescind the funds Black Dragon invested into the project and preparations for a closing are being expedited.
Black Dragon Management also announced the contracts that were scheduled to be signed this week involving the sale of leases located in two of the oil and gas fields in Louisiana are in the process of being revised. Management intends to make an announcement of all the terms of the sale with full disclosure as soon as the documents are signed and executed.