Indigo-Energy updated its progress on natural gas production in the Illinois Basin. The Company began completion efforts on one vertical well and two horizontal wells back in December of 2009 and announced in March that these wells had begun flowing and flaring a significant volume of natural gas. Since that announcement, the Company and its operating partners in the basin have completed testing and inspections by the state utilities regulatory commission and passed gas quality testing with the pipeline company. Additionally, the Company announced that a contract for the purchase of gas had been signed and that final steps were being taken to ensure the most consistent and optimum flow of gas to the pipeline once production into the pipeline begins.

Since giving its last update on April 21st, Indigo has moved its progressive cavity (PC) pump approximately 90 feet lower into the vertical HUB well and continues to make adjustments to the wells both above and below the surface. Some flexible tubing on the surface has been replaced with steel pipes, a larger fluid separator has been installed and a higher capacity injection pump has been delivered and successfully installed as well. The Company continues making adjustments to the down-hole pump in response to the evolving well characteristics (fluid level, volume and consistency) that are often prevalent in early stages of pumping and production.

Indigo President and CEO Steve Durdin stated, "We are being very careful in this operation to do things right and to plan and build according to what we anticipate in terms of production. We are using the best technology available to us and have a great team of experts supporting our field efforts. We have been very encouraged with the gas flared from our wells so far and look forward to getting into full time production." Durdin concluded, "We are also very pleased with our continued oil production and have already had our first truckloads picked-up and delivered to local refineries. We believe that this fact, along with our anticipated natural gas production that should be commencing soon, makes this a flagship project for Indigo and its investors."

Tags: Indigo-Energy