Indigo-Energy Fires Up Gas Production in Illinois Basin

Indigo-Energy has begun flowing gas from its three natural gas wells in the Illinois Basin. As was previously announced, the Company and its operating partner drilled a series of two, one-mile long horizontal spoke wells into a vertical hub well which serves as the single production point for the three producers in this hub and spoke well configuration. As of this morning the wells have flowed over 2.5 million cubic feet of gas during the de-watering operation while flaring the produced gas at the field's gas processing facility. As was recently announced, necessary mechanical adjustments to the wells are now finished and testing of the field's gas transmission pipeline has been successfully completed for the state utilities regulatory commission. The Company is now awaiting the final gas quality analysis required by the interstate pipeline and it is anticipated that the results of that test will be received next week. The results of similar previous tests have been excellent so Indigo and its operating partners anticipate producing gas into the pipeline on or before the 8th of April.

In addition to this production news, the Company announced that a natural gas sales contract is currently being finalized. This contract will provide for the purchase of produced gas and will commence immediately upon receipt of satisfactory gas quality test results. This gas contract should allow for the sale of the maximum amount of gas that can be processed in the field from the Company's wells.

Based upon this information along with the data that has been observed during this pre-production phase, Indigo is anticipating that this project will be a real milestone for the Company's shareholders and investors. This news came as a culmination of a year-plus long effort to begin producing natural gas and oil in a field that appears to contain an abundant quantity of both resources. In addition to the three natural gas wells, the Company also drilled one horizontal oil well that has also been a part of this intense mechanical and field effort over the past several months. There have been some very encouraging developments with the oil well and Indigo hopes to have an additional announcement in this regard.

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