Black Dragon Resource Companies, Inc. (BDGR)



   ICE COLD NOTES

June 21 - First mentioned at $0.07.

July 9 - Ice Man's Notes: The Ice Man would only buy it around 7.5 cents.

Ice Man's Position: ICS has been compensated 3.5M shares as compensation from a third party, and has bought 600,000 shares.


   PROFILE

Headquartered in Austin, Texas, Black Dragon (BDGR) is in the business of enhancing the productive output of crude oil and natural gas in mature, marginal stripper wells, a well whose production has slowed to 15 bbls of crude oil per day or less.

There are over 400,000 crude oil stripper wells in the United States, which produce nearly 1 million bbls of crude per day. Not all mature wells are producing; many have been abandoned and plugged, due to lower market prices for crude oil in the 1990s.

There are approximately more than 245,000 natural gas stripper wells in the U.S. A stripper gas well is defined as one that produces 60,000 cubic feet or less of natural gas per day.

The Department of Energy reports that marginal wells plugged and abandoned between 1993 and 2000 represents 150 million barrels of crude still in the ground, creating a huge opportunity for an experienced production company to exploit, in view of the current and projected market price of oil, and at the same time, aid in lessening U.S. dependence on foreign oil.

Black Dragon will continue to acquire viable blocks of wells, and raise average-daily output by putting plugged wells back in operation, and begin to employ enhanced recovery methods.

   INVESTMENT HIGHLIGHTS

  • Black Dragon has proven to be an innovative leader in the mature domestic oil and gas industry.
  • The company is noted for its domestic oil and gas assets located in the Caddo Pine Island region of Louisiana.
  • According to a March 2005 Department of Energy report of the major oil fields in Louisiana, Caddo Pine Island contains 2.06 billion barrels of Remaining Oil In-Place (ROIP), the richest field in the Onshore Gulf Coast basin.
  • The company has no exploration risk. Black Dragon's portfolio contains an ever-increasing number of producing wells.
  • The outlook for energy prices continues to be positive.
  • Favorable governmental environment exist to increase domestic production.
  • Owns 1200 oil and gas wells, with 450 in production.
  • Plans to add 50 producing wells each month.
  • Management expects $7 million in revenue this year, with $3.1 million net income.
  • Proved Developed and Probable Reserves as of 9/1/06 have a present value of approximately $26 million in net cash flow to Black Dragon using a discount rate of 10% (a "PV10 analysis") and assuming $60.00/Bbl for oil and oil equivalents. The report also calculated that these reserve assets could generate approximately $37 million in future cash flow to the Company (net), excluding the discount rate.

   MANAGEMENT

Richard Michael - President, Director
Ron Allen - Vice President, Director
Tom Neeley - Secretary

   COMPANY CONTACT INFORMATION

Black Dragon Resource Companies, Inc.
Corporate Headquarters
1714 Forkview Road
Austin, TX 78704
Phone: 512-442-4151


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