Indigo-Energy announced that is producing oil from its horizontal oil well, the D-1, recently completed in the Illinois Basin. The well began flowing commercial grade oil about one week ago and is now consistently producing approximately 80 barrels per day. The Company believes that continued adjustments to the well and down-hole pump may cause increased production in the coming weeks. In addition to the oil production, this well is also producing natural gas at a flow rate of approximately 200 MCFD (thousand cubic feet per day). Because of this additional production development, a new gas line has been run to the well site so the natural gas can be gathered and sold simultaneously with the oil, making the D-1 both a gas and oil producing well.
INDIGO's President and CEO Steve Durdin stated, "I am thrilled to be able to share this exciting news with our shareholders today. The oil production we are announcing today along with the stability of oil prices over the past several months represent the continued fulfillment of the business plan for INDIGO's shareholders and drilling partners. Even at current production levels the Company anticipates an ability to liquidate the remaining payables associated with the initial drilling as well as begin to return a substantial profit by the end of next quarter."
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