Ignis Petroleum Group, Inc., (OTCBB:IGPG), today
provided the following operations update. Michael P. Piazza, President
and Chief Executive Officer said, "I would like to take this
opportunity to express my thanks to our shareholders for your
continued loyalty. Ignis ("Your Company") remains on track to evaluate
and develop drilling projects. As you are aware, oil and gas resource
evaluation and development is a time consuming process, particularly
true now as rig scarcity is delaying projects for the entire industry,
and new resource plays, which are now becoming economic at current
prices, require significant lead time in development planning. Our
goal remains to reward you for your patience and loyalty with
significant returns on investment as the Company executes potentially
high-return projects.
"To that end, we continue to expand the scale and scope of our
potential development activities. We are now actively pursuing
partnerships with independent oil & gas companies to develop
significant resources in our onshore U.S. Gulf Coast and Mid-Continent
focus areas, and with bank and fund managers to provide financing when
we need it. These efforts have been ongoing since last year and are
expected to come to fruition in the near future. In connection with
these efforts, Eric Hanlon recently joined the Ignis team as a
full-time advisor with responsibilities over mergers, acquisitions and
partnerships. Eric brings more than 15 years of industry experience,
gained as a Partner with McKinsey & Company in Houston and as
Vice-President with Shell Oil Company in London. During his career,
Eric has been instrumental in devising company strategy and
structuring and negotiating complex partnership and financing
arrangements for major and large independent energy companies.
"Regarding our ongoing operations, we recently performed a
workover of our Acom A-6 well, located in Chambers County, Texas. The
purpose of this project was to clean out a paraffin buildup in the
well, which had progressively reduced the oil and gas production
rates. Upon completion of the project, the downhole pressure increased
to levels close to those encountered when production began in October,
2005, and average daily production rates have now increased to over
225 barrels of crude oil and 1.15 million cubic feet of natural gas.
Additionally, a result of the workover has shown that the reservoir
has not been depleted to the extent we originally estimated and that a
significantly higher amount of oil and gas may be present. Your
Company has a 25% working interest in the well in which Kerr-McGee is
the Operator.
"The Sherburne Field development prospect, located in Point Coupee
Parish, Louisiana, remains on schedule for development this quarter.
The location has been prepared and is ready to accept the drilling
rig, which is expected to spud the well in July. The target depth is
9,800 feet and should take approximately one month to complete
drilling operations. We will provide more information as the project
progresses. The Company has a 15% before payout working interest in
the well in which Rodessa Operating Company is the Operator.
"The Crimson Bayou Prospect, located in Iberville Parish,
Louisiana, has been delayed from its second quarter drilling date. A
minimum water level in the Atchafalaya Basin is needed in to allow
safe movement of a barge rig to and from the drilling site. During the
second quarter, the water did not reach this level when the barge rig
was available. The Operator, Range Resources, expects the water levels
to be sufficiently high enough when the rig becomes available again
later this year, but at this time, we do not have a scheduled date for
this drilling to begin. The Company owns a 25% before payout working
interest in the prospect.
"The three Barnett Shale wells, located in Montague and Cooke
Counties, Texas continue to operate and have produced over 4,600
barrels of gross crude oil and 26 million cubic feet of gross natural
gas since coming on-line in the second quarter. Two of the three wells
have been only partially completed thus far to allow the Operator to
test the lower productive zones. The final completions in these two
wells are expected within the next three months at which time
production in these wells is expected to increase. The Company has a
12.5% before payout working interest in the wells in which Rife Energy
Operating, Inc. is the Operator.
"As we recently told you, we welcomed our new Vice President of
External Relations, Patty Dickerson, who joined us last month. Patty
will be responsible for strengthening and expanding our communications
and investor development activities. I invite you to call and get
acquainted. Patty's direct line is 214-459-3193, the toll-free
shareholder number is 1-866-67-IGNIS (1-866-674-4647) or you can reach
her at pd@ignispetroleum.com. It's an exciting time for Ignis and we
look forward to reporting on our progress in the months to come."
About Ignis Petroleum
Ignis Petroleum Group, Inc. is a Dallas-based oil and gas
production company focused on exploration, acquisition and development
of crude oil and natural gas reserve in the United States. The
Company's management has closely aligned itself with strategic
industry partnerships and is building a diversified energy portfolio.
It focuses on prospects that result from new lease opportunities, new
technology and new information. For further information, visit
www.ignispetro.com.
Safe Harbor for Forward-Looking Statements
This release contains certain "forward-looking statements" as
defined by the Private Securities Litigation Reform Act of 1995,
including, without limitation, expectations, beliefs, plans and
objectives regarding the potential transactions and ventures discussed
in this release. Among the important factors that could cause actual
results to differ materially from those indicated by such
forward-looking statements are the risks inherent in oil and gas
exploration, the need to obtain additional financing, the availability
of needed personnel and equipment for the future exploration and
development, fluctuations in gas prices, and general economic
conditions.
