Black Dragon Restores 16 Previously Unproductive Wells
Black Dragon Resource Companies, Inc. reported that sixteen wells have been restored to production as a result of Summit Resource Management's ("Summit") interim leadership. Although the Summit personnel have not yet assumed official corporate leadership roles with Black Dragon, they have been integrally involved with the Black Dragon properties to facilitate a smooth transition once the anticipated funding has been received and, in the interim, to assist in increasing production.
John Martineck, President of Summit, provided a recent update for Black Dragon shareholders, stating: "We have been working diligently to identify the existing leases with the most potential for improvement with minimum effort and the least cost. This improvement has been achieved by simply utilizing the current monthly cash flows from existing operations and yet we were able to restore production at these sixteen wells on four leases. The money needed to be spent on the minor work required to put these wells back into production should be repaid within two months. We are continuing to execute similar minor projects with the limited monthly cash flows presently generated by the Company, but are looking forward to the receipt of new funding required to perform a large number of workovers, recompletions, and new drillings warranted on these leases."
Mr. Lanza, President of Black Dragon, noted that the Summit Group has been of significant assistance to the Company's ever-improving operating efficiency and reiterated his intention to resign and his eager willingness to turn over full management control to the Summit Group upon receipt of funding which he expects to occur in the near future.