Black Dragon Resource Acquires Producing Property in Louisiana and Texas
Black Dragon Resource has acquired over 400 wells located in the prolific Caddo Pine Island Field in Louisiana and Texas. Black Dragon expects, once the wells are put into production, that they will add at least 300 barrels per day of oil production. The Company issued Series A Preferred Stock and a Note, collectively having a face value of $3 million, in the transaction. Black Dragon now owns interests in over 1,000 wells.
"The acquisition of these wells represents a significant milestone for Balck Dragon, as it now gives us enough wells that are contiguous to each other to support a profitable drilling program," said Rick Michael, President of Black Dragon Resource Companies, Inc. "By acquiring ownership interests in over 1,000 wells, we are now well positioned to rapidly increase cash flow through the expansion of our drilling activities."
Black Dragon Resource Companies has projected its 2005 annual
gross revenue to be approximately $5 million based on the success of
their drilling and acquisition initiatives.