Indigo-Energy, Inc. says that the pump system recently installed in the HUB natural gas well in the Company's Dubois field operation has been successfully running and pumping water and gas for the past 10 days. Water is being effectively removed from the two horizontal legs which are connected to the vertical HUB well thus allowing the flow of gas to the surface. A gas flare (burn-off of released gas from the well) at the surface was lit on December 13th and has been burning continuously since then as the new pump moves the well closer to production status. This marks the longest continuous amount of time that the wells have been operated since efforts began to bring them into production earlier this year. The Company is also pumping the D-1 horizontal oil well very successfully after a short down time for maintenance of surface equipment. This is the first time since drilling was completed in 2009 that all 4 wells have been running simultaneously. This milestone comes after many weeks of intense efforts in the field to cure pump and water flow problems that had hindered progress for much of 2010. As the gas wells begin 'waking-up', work is being done at the Nitrogen Rejection Unit (NRU) to prepare for the processing and delivery of gas to the already installed and inspected transportation line to the pipeline tap.

In addition to this significant progress being made in the field, the Company is announcing today the resignation of two of its Directors, Hercules Pappas and Everett Miller. Hercules Pappas tendered his resignation effective December 1st for personal reasons. Miller resigned as Director and has also resigned from his post as Indigo's Chief Operating Officer effective December 18th. This voluntary resignation by Miller came in the wake of a civil complaint filed by the State of New Jersey against Everett Miller, Carr Miller Capital (CMC) and others alleging violation of the securities laws and other violations. Indigo was named in the complaint as a nominal defendant, along with 18 other entities, because of CMC's investment with the Company but there has been no allegation of wrongdoing on Indigo's behalf. Indigo had no knowledge of any of the wrongdoing alleged to have been committed by Everett or CMC and the Company is cooperating fully to assist the Attorney General's office in its court action. Field operations will be unaffected by these internal changes.

In response to these field developments, Indigo President and CEO, Steve Durdin stated, 'We are thrilled with the progress that is being made out in the field. Our new staffing on the ground along with our recently announced partnership with Reef, LLC. have made these very significant steps possible. We are working hard to take the final steps in the field to begin producing and selling gas for the first time in this project and anticipate that to happen in the early part of the first quarter of 2011.'

Tags: Indigo-Energy