Indigo-Energy Assumes Operation of Illinois Basin Project
Posted on December 01, 2010 at 08:40 AM EST
Indigo-Energy, Inc. (OTCBB: IDGG) is pleased to announce that it has become the field operator of its project in the Illinois Basin. Through the first phase of drilling and development of the Dubois oil and gas project, Indigo was working in cooperation with an operating management company, Epicenter Oil and Gas, who oversaw day-to-day field operations. As was detailed in the Company’s latest public filing, Indigo has removed Epicenter from the project and is now exercising direct control over operations. This move was accompanied by a formal agreement between Indigo and Reef, LLC. that creates a partnership between the companies for completion of the current project as well as future development opportunities in the field. Reef LLC. is the owner of the leases currently being developed through the wells that Indigo has drilled and they also own the Nitrogen Rejection Unit (NRU) located on the property as well as other field infrastructure. As part of this new relationship, Indigo and Reef will both contribute financially to the successful completion of the three natural gas wells that are currently being completed by the Company. In addition, the companies are currently assessing the potential future production capacity of some additional natural gas and oil wells already located on the property.
As was announced at the end of October, Indigo has been working on a concentrated effort to bring the natural gas wells that were most recently drilled into full time production. This has involved the removal of an existing down hole pump system and the installation of a custom designed tube pump and above ground pumping unit which will be used to remove water from the gas wells so that natural gas can consistently flow to the surface and be processed at the NRU. While there have been some delays due to weather and equipment availability, Indigo feels that it is drawing closer to the very important milestone of consistent gas flow and production.
Indigo President and CEO Steve Durdin stated, “The new, formalized partnership with Reef is an exciting announcement for Indigo as it streamlines our field operations and further enhances our prospects for future profitability in this current project and beyond. We are confident that we have the right team in place to deliver long-awaited results to our investors and shareholders.” He concluded by saying, “I want our shareholders to recognize our unwavering commitment to successfully finishing what we started with this drilling project. This fact is driven by our underlying confidence that we are on the right track and that the results will speak for themselves once production begins.”
About Indigo-Energy, Inc.:
Indigo-Energy Inc. is an independent Nevada energy company, engaged in the drilling, development, production and acquisition of certain oil and gas reserves located in different geological regions around the United States. This involves drilling of developmental oil and gas wells at the different program sites on proven reserves. It also includes the purchase of producing oil and gas wells, and existing oil and gas leasehold interests.
Safe Harbor: Statements contained in this press release that are not based upon current or historical fact are forward looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from estimated results. Management cautions that all statements as to future results of operations are necessarily subject to risks, uncertainties, and events that may be beyond the control of Indigo-Energy, Inc. and no assurance can be given that such results will be achieved. Potential risks and uncertainties include, but are not limited to, the ability to successfully complete drill projects, adapt to changes in technology, and energy competition.
Cathy Root, 1-702-990-3387
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