Black Dragon Closes on $2 Million Financing
Black Dragon Resources has closed on a $2 million dollar financing deal which included the sale of restricted stock and the sale of a small working interest on Caddo Lake lease.
The $2 million financing gave Black Dragon the ability to close on the Caddo Lake leases and have enough working capital to drill seven new wells. The Caddo Lake leases currently produce approximately 2000 barrels of oil a month. Black Dragon will also sell the rights to construct a gas pipe line to Petrol Industries, Inc. for a small royalty override. Black Dragon will also concentrate on putting gas wells online during the construction period.
When the pipe line is finished Black Dragon expects cash flow of additional $156,000 starting sixty days after the gas pipe line is completed.
Mr. Michael went on to say that they are still waiting for the official engineering report so they can close on a round of debt financing.