Black Dragon Puts 63 More Wells into Operation in June
Black Dragon Resource announced that 63 more wells were made operational in June, bringing the Company's total to 513 wells. Gross production was 8,618.40 for June, and Black Dragon shipped over 4,000 barrels of oil and equivalent. Provided that rainfall decreases, management predicts that July should be a great month. Black Dragon expects to sell thousands of barrels, as soon as the ground hardens.
Management reported that the Company will become cash on cash profitable at 9,000 barrels sold per month. Currently, production is averaging .5625 barrels a day per well. With the addition of Mike Ellis to the team, management believes production can be increased to over 5 barrels a day per well. "My original goal was 3 barrels a day per well, and I still believe we can make that happen. Taking into account eventually having 1,200 wells in production at the current rate of .5625, that would still generate 67,500 barrels a month and gross 4 million a month cash flow. That would equal net revenue of over 2.8 million per month, making our stock grossly undervalued at the current $.09," stated Joe Lanza, CEO of Black Dragon.
Black Dragon Resource Companies, Inc. is an oil and gas production company currently focused on the acquisition of mature, producing and existing domestic oil and gas fields. The Company's present focus on mature, domestic oil fields eliminates exploration risk, reduces costs of completion, and provides rapid generation of income in a niche market where larger independent and major oil companies are not positioned to compete.