This process ensures that the wells will be capable of capturing the maximum amount of gas in this delicate formation. If the main drilling rig was to fully complete these wells, Black Dragon Resource would run the risk of damaging its future returns.
The recently mentioned Paluxy well, in which Black Dragon Resource owns a small interest, has been brought into production this week and has shown excellent results. Paluxy oil is much thicker and more viscous than many other varieties, so the interest owners are installing a heat treatment unit which is necessary for this type of production to be marketed in the current cold climate.
Scott D. Smithfurther, chairman and chief executive officer, remarked that Black Dragon Resource is currently in negotiations to acquire a possible 40% interest in a lease that is comprised of 14 wells and has an excellent production history for a stock issuance. This lease has averaged 215 barrels of oil per month over the last year which would be a nice asset to add to Black Dragon Resource’s portfolio.
