OIL CITY, La., Jan. 16 /PRNewswire-FirstCall/ -- Black Dragon Resource Companies, Inc. (OTC Pink Sheets: BDGR), announced today that the Company is filing un-audited Financial results for the periods ending December 31, 2005 and September 30, 2006 with Pink Sheets.com which should allow the company to once again to be fully quoted on the Pink Sheets.com web site.
The Company continues to work on the audits and once the Company has met all of audit filing requirements, the Company intends to immediately file a 15C-211 and become a fully reporting and trading company. We have included for your information the draft financial statements as Exhibit 1 and Exhibit 2.
In commenting on Black Dragon's future, Rick Michael said, "We appreciate the loyalty expressed by our many stockholders over the years and intend to maintain open channels as to fully inform them of our progress. We look forward to some very exciting developments and accomplishments in the coming months."
About Black Dragon:
Black Dragon Resource Companies, Inc. is an oil and gas Production Company focused on the acquisition of mature, producing and existing U.S. oil and gas fields. The Company's focus on mature, domestic oil fields eliminates exploration risk, reducing costs, and provides immediate generation of income in a niche market where larger independent and major oil companies are not positioned to compete.
The statements in this press release regarding any implied or perceived benefits from existing oil and gas field properties, actual reserves and revenues to be derived from the reserves, plans to drill additional oil and gas wells, anticipated revenues, the acquisition of additional oil or gas leases, maintaining mineral lease rights, and any other effects resulting from any of the above are forward-looking statements. Such statements involve risks and uncertainties, including, but not limited to, the continued production of gas at historical rates, costs of operations, delays, and any other difficulties related to producing minerals such as oil or gas, continued maintenance of the oil field and properties, price of oil or gas, marketing and sales of produced minerals, risks and effects of legal and administrative proceedings and governmental regulation, future financial and operational results, competition, general economic conditions, and the ability to manage continued growth.
Forward-Looking Statements
Certain information discussed in this press release may constitute forward-looking statements within the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are inherently subject to unpredictable and unanticipated risks, trends and uncertainties such as the Company's inability to accurately forecast its operating results; the Company's potential inability to achieve profitability or generate positive cash flow; the availability of financing; and other risks associated with the Company's business. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
EXHIBIT 1
Black Dragon Resource Companies, Inc.
(A Development Stage Company)
12/31/05 & 9/30/2006
Statement of Operations
(Unaudited)
Unaudited Unaudited
Twelve Months Nine Months
Ended Ended
12/31/05 9/30/06
Revenue:
Oil Sales (net) $636,472 1,493,097
Gas Sales (net) 38,379 29,395
Other 55,000 0
Total Revenue (Net) 729,851 1,522,492
Cost of Goods Sold
Lease Operating Expense 506,519 756,942
Gross Profit 223,332 765,550
Expense
General & Administrative Expense 258,647 738,638
Operating Income (EBITDA) (35,315) 26,912
Other (Income)/Expense
Interest (Income)/Expense 104,459 139,062
Amortization & Depletion 217,539 375,260
Total Other (Income)/Expense 321,998 514,322
Net Profit/(Loss) $(357,313) (487,410)
EXHIBIT 2
Black Dragon Resource Companies, Inc.
(A Development Stage Company)
12/31/05 & 9/30/2006
Balance Sheet
Unaudited Unaudited
Twelve Months Nine Months
Ended Ended
12/31/05 9/30/06
Assets
Cash $20,394 260
Accounts Receivable (trade) 127,232 137,263
Accounts Receivable (other) 176,554 0
Total Current Assets 324,180 137,524
Fixed Assets
Land And Bldgs 450,235 450,235
Leasehold Interests 9,889,866 14,544,036
Depletion & Amortization (217,539) (592,799)
Net Fixed Assets 10,122,562 14,401,472
Other Assets 1,168,188 970,061
Total Assets $11,614,930 15,509,057
Liabilities and Stockholders' Equity
Short Term Notes Payable @ 6% $300,000 0
Short Term Notes Payable @ 13% 0 100,000
Accounts Payable 253,734 1,015,357
Contingent liabilities 0 770,000
Deferred Revenue 0 15,000
Accrued Expenses 30,000 102,500
Total Current Liabilities 583,734 2,002,857
Long Term Liabilities
Notes Payable 4,944,361 6,553,942 (a)
Total Long Term Liabilities 4,944,361 6,553,942
Shareholders Equity
Common Stock 21,398 58,293
Preferred Stock 4,344,651 4,344,651
Additional Paid in Capital 2,179,467 3,495,404
Retained Earnings (458,680) (946,090)
Total Equity 6,086,836 6,952,258
Total Liabilities and
Stockholder's Equity $11,614,930 15,509,057
a) includes 15 year 10% note in the amount of $2.4 mil for Caddo Lake
Property
