Indigo-Energy has successfully completed the installation of a well pump system for its three natural gas wells and one oil well located in the Illinois Basin. The main system, which is driven by a state-of-the-art progressive cavity pump was installed in the HUB or "collector" vertical natural gas well which will be the production point for all three gas wells that were drilled in 2009 in the New Albany shale. In addition, a pump was successfully installed in the horizontal oil well which the company also drilled in 2009 with the help of its operating partners in the Illinois Basin. This latest round of work was able to be completed because of debt funding that the Company raised in December of 2009 specifically for the purpose of getting all four wells into full-time production.
"We couldn't be more excited," stated President and CEO of Indigo, Steve Durdin. "Every bit of data that we have along with the test results from last week point to the fact that these wells should meet or exceed all of our expectations for natural gas and oil production in this field." Durdin was on sight during the installation and testing last week along with a team of professionals who were executing a completion plan that was developed for the Company beginning in December of 2009. "This step marks a momentous accomplishment for Indigo and its shareholders as we near anticipated production on this exciting project," he added.
Over the next week, the newly installed pumps will undergo additional tests and adjustments while some gathering system and infrastructure improvements are made at the well sites. Additionally, the Company and its operating partners in the Basin will complete some required gas and pipeline tests necessary to begin flowing gas and oil consistently from the wells. Once in production, Indigo will use revenue from its working interests to provide relief for outstanding payables on this project as well as helping the Company prepare for its next steps of growth and development. Durdin concluded, "I believe that these four wells in the Illinois Basin will serve as a major turning point in the Indigo story as we move ever closer to achieving our long term business objectives as a Company."
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