Indigo-Energy: Pump Replacement Project Commenced in Il. Basin

Indigo-Energy updated progress being made on its wells in the Illinois Basin. As was previously announced, the Company completed drilling three natural gas wells and one oil well earlier this year and, since that time, has been working through a variety of production challenges in order to get the natural gas wells into full time production. The natural gas wells were drilled in a unique hub and spoke design with two of the wells being drilled horizontally and the main HUB well being drilled vertically while the oil well is a single leg horizontal drilled in a slightly deeper formation. While there have been some exciting developments and announcements regarding tests and initial data from the wells, the Company is still working on sustaining consistent production. After many weeks of careful study and analysis as well as bringing in outside field experts to review the project, Indigo is announcing today its plans to complete this project and its projected timeline for these important next steps.

Work has begun at the well site to replace the pump system that has been in use for the past 6 months. While there have been sporadic great results with this type of Progressive Cavity (PC) pump, a determination has been made to switch to an alternate pump and pump drive in order to bring the well to its expected potential. Over the next 14 days, this pump replacement project is expected to be completed and adjustments will also be made to the HUB well to accommodate this new hardware. Indigo has also been using this down time to make upgrades and adjustments to its water injection pump and other pieces of surface equipment to ensure production can be sustained once this work is completed. These decisions were made after extensive research and consultation with experts in this type of shale production and water removal. Indigo has hired one of the top field experts in the Illinois Basin, Scott Harper to ensure top level expertise and oversight throughout the remainder of this operation.

Indigo President and CEO Steve Durdin stated, "It has been a very busy and active time for Indigo over the past several months as we have sought to understand fully what it’s going to take to bring us to a point of success on these wells. We have made very careful and calculated steps up to this point with different treatments and processes successfully completed at the well sites but we have not yet been able to reach the finish line. This does not diminish in the least our confidence or sense of anticipation about what we expect to have here once we get into production full-time." He concluded by adding, "We are unwavering in our determination to finish what we started because we have already seen a glimpse of the outstanding potential that we have tapped into in this field."

Once the current work is completed, there will be several days of testing before production could begin and some of the timeline will depend on weather and equipment availability during this phase of operations. The Company looks forward to sharing additional news from the field in the coming weeks.


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